China, one of the world’s most powerful economies, has announced the creation of its own digital money for its citizens.
According to the Wall Street Journal, this unique digital money dubbed the “digital yuan” will be regulated by the country’s central bank. It does, however, contain substantial distinctions from other cryptocurrencies, such as Bitcoin. For example, it will miss Bitcoin’s anonymity and untraced ability.
Instead, it would present a clear image of the economy to the country. According to a study by TOI, China’s digital currency has been under development since 2014, when bitcoin became popular in the country.
China isn’t the only government developing a digital currency; central banks worldwide are creating their own. But, on the other hand, China is the first big economy to demonstrate a functioning digital currency that is already in widespread usage around the globe, giving it a tremendous head start.