Three Things To Know About China’s Digital Yuan (Not a Cryptocurrency)

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China’s central bank is reportedly making strides towards launching a digital currency (not a cryptocurrency) tied to the yuan. Here are three things to know about the proposed central bank digital currency (CBDC). Financial Monitoring and Control Anyone remotely familiar with China knows that electronic payments are already a huge part of the country’s socio-economic fabric. So, why launch a digital currency in a country where people hardly make cash payments? According to Mu Changchun, an official of the People’s Bank of China (PBoC), the soon to be launched CBDC will see people’s identities linked to their wallets holding the digital coins. Thus, Chinese authorities will have another avenue to monitor the financial dealings of its citizenry. According to Bloomberg, Fan Yifei, the PBOC Deputy Governor, has previously suggested that the CBDC could have daily transaction caps for individuals. Also, commercial banks will submit daily reports of the transactions carried…

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