China’s digital currency takes shape; can be used for travel subsidies to party fees

The organization in charge of developing the first digital Yuan has confirmed the schemes as digital Yuan gets approval in four cities trials.

The development of the digital currency in China began last week as Libra, a cryptocurrency backed by Facebook, dropped its plan to become a global currency. 

The first look at the digital currency was released on Wednesday when a screenshot of the beta version disclosed to the public. 

The Century Business Herald reported that a bank whose name cannot be published, which is resting the official digital currency, has permitted some of the Communist Party members to pay their membership fees. 

Further information regarding the digital Yuan:

The Digital Currency Research Institute of the People’s Bank of China, the agency which is responsible for the development of digital currency, confirmed that the trial programs have started and can be accessible via China’s state-owned banks. 

The digital currency scheme would initially release in four cities – Shenzhen, Suzhou, Xiongan, Chengdu. Rumors also say that the 2022 Winter Olympics could also be a place to test the currency.  But, this does not mean that the digital currency is officially launched.

According to a report by Citic Securities, China expected to launch it later this year.

The brokerage house also mentioned that the total amount of digital currency could reach up to 1 Trillion yuan over the coming years. This is equivalent to about one-eighth of China’s entire cash.

A lot of hopes were there on Facebook’s Libra project, which boasted of being the world’s first common currency. 

But, unfortunately, the Libra group mentioned that the future money would link up with USD instead of creating an all-new cryptocurrency. 

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