11:24 24.12.2019 (updated 11:56 24.12.2019) Short URL
China plans to launch the world's first sovereign cryptocurrency, which would help in the fight against various economic problems.
One of the factors that led Beijing to develop its cryptocurrency was its concern over the development of cryptocurrencies such as Facebook's Pound and bitcoin. With that, China would achieve what the monetary authorities have been trying for a long time.
A survey by the Bank for International Payments (BIS) in 2019 found that approximately 70% of the world's monetary authorities were considering launching their own versions of digital currencies.
Sputnik / Vladimir Astapkovich
The head of the People's Bank of China's digital currency research institute, Mu Changchun, noted that the electronic yuan would be distributed to commercial banks and online payment companies such as Tencent and Ant Financial.
The technology would provide unprecedented capacity to Chinese monetary authorities, which could monetize the flow of spending online. In this way, the control agencies will have a powerful and very useful tool in the fight against fraud, tax evasion and money laundering.
Using digital currencies will help make interbank agreements and financial transactions more efficient and secure.
The entry of the digital yuan into Chinese territory could contribute to the Asian country's efforts to settle its $ 341 billion ($ 1.4 trillion) toxic debt.
(tagsToTranslate) survey by the International Payments Bank (t) 70% of the world's monetary authorities (t) have studied the possibility of launching their own versions of digital currencies.