China to introduce digital currency to break monopoly of US dollar

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China to introduce a digital currency to break monopoly of US dollar

Monitoring Desk : 

China wants to break the monopoly of the US dollar on the global financial system. It’s hoping a digital currency could deliver. After years of preparation, the country began rolling out an ambitious test of a digital version of the yuan earlier this year. Pilots exist now in four Chinese cities, where transactions totaling more than 2 billion yuan ($300 million) have already taken place.

If the program is expanded nationwide, China would become the most powerful economy yet to offer a national digital currency, beating a forthcoming digital version of the euro from the European Central Bank.

Beijing has touted the digital yuan as a futuristic currency that will make buying things more convenient and secure. Officials also say that it could help those who don’t have access to bank accounts and other traditional financial services.
While China is already nearly cashless and a lot of transactions happen digitally, they do so beyond the purview of the state on privately-owned apps and platforms.
An official digital yuan would change that, as it would give Beijing an unprecedented amount of information about how and where people are, and what they’re spending their money on — an approach that runs counter to the original intent of digital money in the first place. Bitcoin and other digital currencies rely on a decentralized blockchain system that prevents any one person or organization from having control.
Courtesy: cnn.com
China to introduce a digital currency to break monopoly of US dollar

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