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Is digital yuan a type of cryptocurrency?

You heard about many crypto coins such as bitcoin, ethereum, dogecoin, litecoin, Shiba Inu, etc. In ordinary language, we call all the cryptos a digital currency that we can use globally without interference by third parties such as the government and financial institutions. Have you heard about the digital yuan that China recently launched? They also called it digital currency. You can invest in digital yuan using the trading platform https://www.yuan-pay-group.net

Digital-Yuan

Credits: asiatimes.com

What is digital yuan?

The Digital yuan is a new digital currency recently launched in China that will replace China’s physical notes and coins with digital currency. The main motto of the country is to make a digital China where people can do transactions easily with a single mobile app where you do not need an internet connection. And the government will track all your transactions, whether small or large.

Is digital yuan a type of cryptocurrency?

No, the digital yuan is not a type of cryptocurrency. And it is the inspiration for cryptocurrency, and many other countries are also working on launching their digital currency. Still, the time is not specified, and China is the first mover to launch this digital yuan in china. 

When the cryptocurrency was first popular, many people started using it to exchange illegal goods and services, tax evasion, etc. The central bank of every country was very frustrated because they were afraid of losing the value of their domestic currency. As a result, many central banks started to ban crypto. China has also banned crypto because it has no track of the money, and that’s why they launched the digital currency so they can track every small and sizeable significant transaction of a citizen, and no one can escape from this.

The points make it different from cryptocurrency.

There are the following points that make the digital cryptocurrency from china’s digital currency given below:-

  1. The Digital yuan is purely worked on the centralized system because it was launched by the People’s Bank of China (The central bank of china) and is under the custody of the Chinese government. China banned cryptocurrency from tracking people’s spending, and now they launched the digital yuan, and it is effortless to track the expenditure of every citizen. But the cryptocurrency is not under the government’s custody or the central authority of every country because it got designed to remove third parties control.
  2. The Digital yuan is legal in China because the government of China initiates it. It is evident that if the government takes any decision, it is a legal decision. All the control of the digital yuan is in the hands of the Chinese government. But cryptocurrency is uncertain and not a legal currency. In some countries, the government tries to make it legal tender as fiat currency, but some countries restrict it. 
  3. The value of the digital yuan gets fixed as the renminbi, and it will not rise and fall without the permission of the People’s Bank of China or the government of China. The central bank or the government has the right to fluctuate the currency’s value according to the circumstances. But the cryptocurrency’s value is out of control because no one is tracking or controlling it, and it all depends upon the belief of the people mind. 
  4. Cryptocurrency is a currency that we can use globally, and anyone in the world can trade it easily, except it is not get banned in the country. The value of every crypto coin will remain the same in every country because it is a global currency. Still, the digital yuan is in the initial stage, so it is now a domestic currency means only the Chinese citizens can use this currency, and no other people can use it. The digital yuan app is now available in the domestic digital stores of china on every mobile device, and people who have a bank account in china can use the digital yuan.
  5. Cryptocurrency privacy is public because it works on the blockchain system, and all the transactions get public on this platform where everyone can see the transaction. But digital yuan is a private digital currency that only the government and central bank of china can see the transactions, and no others are eligible to see.

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