Create a FREE account and...
Manage your own Watchlist
Access all education lessons
Converse with other crypto enthusiasts
Be a part of the Interactive Crypto Community
OR
Please fill out the required fields Please fill out the required fields Please fill out the required fields
Get Into Cryptocurrency Trading Today
The crypto world is evolving, and the adoption of digital currency is making great strides. China's initiative to roll out digital renminbi is a remarkable event.
Already, China has handed about $6 million digital renminbi to residents in Beijing for trials. This makes it the first digital currency to be used by a major economy. Note that it is a legal tender that also shares the same value with other Chinese Yuan Renminbi.
The People's Bank of China developed the currency with the purpose of replacing some of the cash that is in circulation. Also worth noting is that China has an advanced cashless payment system. The introduction of the digital currency would be an effective way to speed up these transactions.
The legal tender system will attract no interest, and it will play a vital role in reinforcing the already growing cashless system.
There is also a need and desire to go digital as the use of coins and notes has proved to be expensive. That is both in terms of production and storage. The digital currency will come in handy in addressing some of the challenges that come with cash.
For instance, their usability which is a bit challenging. Coins and notes are also easy to counterfeit and easily used for illegal purposes.
Digital renminbi would also be at the center of eliminating systemic risk and enhancing competition in the payment arena.
The digital system and platform will not only create a level playing field but also enhance the efficiency of the payment system. This way, the transmission of the monetary policy would be made effective.
The distribution of digital renminbi is set to be 2-tier. That is, the People's Bank of China will distribute it to the commercial banks in the country. From this point, the commercial banks will be handed the responsibility of getting the currency to the consumers.
These banks should then be able to provide cash-digital currency exchange services.
As expected, the adoption of the digital currency will have an impact on financial operations. The one obvious outcome is that banks might become less stable than they are now.
Note that the smaller banks have had challenges with managing their balance sheets and are usually facing the risk of failing. The rolling out of the digital renminbi could lead to people taking their money out of these banks.
These runs will particularly be sped up by the removal of sanctions regarding cash withdrawal. Is this something that can be mitigated? Certainly, but only to an extent, and this is through having caps in place on the maximum daily cash withdrawals.
The fact that consumers will be able to move around their financial assets easily will be the cause of instability.
The internationalization of the digital CNY is also a possible outcome. China's financial importance and global trade is growing. This means the number of transactions settled with CNY will also increase.
There is also a possibility that the existing US sanctions will work to promote the adoption of the digital renminbi as an alternative to the dollar.
There is also the possibility that the US dollar will lose its reserve currency status. Note that the US dollar role as a reserve currency is already under threat owing to the Covid-19 pandemic. The digital CNY could pose another challenge and replace the greenback since it is easier to adopt.
There has been a need for China to encourage the residents to use the currency, and there are several measures in place to accelerate adoption. The main challenge experienced amid these efforts is that people have fears of a possible invasion of privacy.
1. Financial incentives
Several financial incentives have been put in place to address some of these worries. Already there are promotional discounts for the digital renminbi. These are set to be rolled out on a large scale just to encourage the currency's adoption.
The other incentive will be offering merchants using the payment platform lower fees compared to what competitors have, for instance, Alibaba. While this is the case, the incentives might also lead to losses.
2. State employees will be paid in digital renminbi
To encourage other entities in the state to use the currency, the government will start paying the state employees in digital renminbi. This effort is already in its implementation stage, as pilots are reportedly being paid in the currency.
This initiative should help in encouraging the widespread integration of digital renminbi for payroll across different entities in the state.
3. The launch of anti-monopoly regulatory efforts
Different government agencies are putting measures in place to mitigate monopoly and platform economy. This is meant to curb the power of established platforms like Tencent. This initiative is expected to accelerate the adoption of the digital currency, as consumers will have many options when it comes to payment methods.
4. Support by large companies
The digital currency is already having a good reception in the state. Conglomerates and tech companies are playing a huge role in rolling out the currency. The conglomerates are now allowed to enable the purchase of the currency, and their large market sure will go a long way in pushing this.
Chinese tech companies are also collaborating with banks to facilitate the use of the currency by consumers.
The rolling out of the digital renminbi comes with several benefits. One is controlled anonymity which will also curb terrorist financing and money laundering. The currency will also support international transactions in US-sanctioned and developing countries.
The currency is also expected to bring about efficiency in transactions as banks will be working directly with the consumers. It is also set to bring about flexibility in the distribution of cash as it replaces the inefficient check system.
Several initiatives are underway to facilitate the adoption of the digital CNY as retail giants are using it for payroll distribution and settlements.
Ethereum a brisé la barrière des 700 dollars. Accompagnant le mouvement haussier du Bitcoin, l’Ether a franchi le 27 décembre...
il y a 3 ans | Nicolas Leroy
Les institutionnels intéressés par l'Ethereum
il y a 3 ans | Nicolas Leroy
PayPal va autoriser ses 346 millions de clients de payer leurs achats et services en bitcoin et cryptos dès l'année prochaine....
il y a 3 ans | Nicolas Leroy
PayPal:un marché potentiel de 346 millions de clients pour lebitcoin
il y a 3 ans | Nicolas Leroy
Create a FREE account and...
Manage your own Watchlist
Access all education lessons
Converse with other crypto enthusiasts
Be a part of the Interactive Crypto Community
ALL
TENDANCE
WATCHLIST
Total Market Cap The Total Market Capitalization (Market Cap) is an indicator that measures the size of all the cryptocurrencies.It’s the total market value of all the cryptocurrencies' circulating supply: so it’s the total value of all the coins that have been mined.
{[{ marketcap }]} {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H) {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H)
Symbol
Prix Cryptocurrency prices are volatile, and the prices change all the time. We are collecting all the data from several exchanges to provide the most accurate price available.
24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current price and the price24 hours ago.
Acheter
{[{ item.name }]}
{[{ index + $index}]}
{[{ item.pair.split('_')[0] }]}
Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
Symbol
Prix Cryptocurrency prices are volatile, and the prices change all the time. We are collecting allthe data fromseveral exchanges to provide the most accurate price available.
24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current priceand the price24 hours ago.
Acheter
{[{ item.name }]}
{[{ index + $index}]}
{[{ item.pair.split('_')[0] }]}
Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
Revue du casino JustBit
Le casino JustBit, spécialisé dans les monnaies virtuelles, est facile à utilis...
Verge Revue
Binance Revue
Dogecoin Revue
Revue IOTA
XTB
XTB en bref : Courtier en ligne Actions et dérivés cré...
Etoro
Etoro est devenu depuis sa création en 2007 l’une des plus belle success story du secte...
Coinmama
Coinmama est une plateforme d’achat de Bitcoin qui existe depuis 2013 et qui s’est forgé une sol...
Kraken
Kraken à été fondée à Sans Francisco en 2011. Kraken est l&r...
Coinbase
Coinbase est considéré comme le plus grand courtier au monde avec ses 12 millions d...
(adsbygoogle = window.adsbygoogle || []).push({}); Introduction: The Dawn of a New Lifestyl...
Cryptopay.me
Cryptopay est une révolution pour les utilisateurs de Bitcoin. Cette plateforme offre à...
Mycelium
MyCelium est une application pour Mobile qui offre de nombreuses possibilités de sécurité et de conf...
Mobi
A quel support ce wallet est il adapté ? Mobi est un portefeuille bitcoin pour portables. ...
Greenbits
GreenBits est un portefeuille Bitcoin pour Android.Ce portefeuille assure la sécurité, et p...
La Suisse considère formellement l’idée d’avoir une monnaie cryptographique étatique
La Suisse est connue dans le monde des crypto-monnaies comme étant une crypto-nation. La Crypto ...
Le G20 annonce des mesures de régulation pour le mois de juillet 2018
Si Mark Carney, qui préside le Financial Stability Board du G20 a rassuré les marchées en pr...
Le minage du bitcoin cash
Il n’existe pas une autorité centrale chargée de réguler le bitcoin ainsi que le Bitcoin cash et,...
(adsbygoogle = window.adsbygoogle || []).push({}); Introduction: The Dawn of a New Lifestyl...
Cryptopay.me
Cryptopay est une révolution pour les utilisateurs de Bitcoin. Cette plateforme offre à...
Mycelium
MyCelium est une application pour Mobile qui offre de nombreuses possibilités de sécurité et de conf...
Mobi
A quel support ce wallet est il adapté ? Mobi est un portefeuille bitcoin pour portables. ...
Greenbits
GreenBits est un portefeuille Bitcoin pour Android.Ce portefeuille assure la sécurité, et p...
COMMENTS (0)