China is testing and planning to introduce its own cyber currency
China is testing its own cyber currency - the electronic yuan. If their plan succeeds, it will mean a real revolution in the financial world, allowing Beijing to become independent of the American dollar.
Until now, all cyber currencies are managed by private entities - China is the first to change this by introducing electronic, state-owned yuan. Although there is no official schedule for the entry into force of this system yet, it is known that work on it has been underway since 2015 and is at an advanced, final stage.
Interestingly, China is not the first country in which the introduction of cyber currency is seriously considered. Such concepts are also implemented in Russia and Sweden, while in Senegal and the Marshall Islands, citizens can already pay with electronic money certified by the national central banks of their countries.
How will the Chinese cyber currency work? Nine entities were selected for distribution, including banks and various payment institutions. They will be responsible for delivering e-yuan to citizens and then supervising the circulation of this electronic currency. The Chinese authorities used blockchain technology to create a cyber currency, which is to ensure the security of transactions and control over the new system.
Chinese experts emphasize that the implementation of the e-yuan will increase China's independence from the dollar, which acts as a reserve currency and in which most transactions are made on the international market. Cyber currency is also to guarantee greater transparency of economic transactions, and thus - reduce the scale of economic crimes.
On the other hand, opponents of such a solution see the danger that electronic money will be used by China to expand its political influence and lead to greater control over citizens and mass surveillance of their financial transactions.