China has launched a national blockchain platform that will allow the introduction of state cryptocurrency. The first payments in CryptoYuan will be made in July. While this will take place in test mode.
Beijing has serious intentions. Although the Central Bank has not yet officially confirmed the Crypto-Yuan implementation schedule, it is expected that a full-fledged launch will occur in mid-2021.
This can change the global financial system. Countries can enter the era of state cryptocurrencies, which will greatly affect the international monetary system, and the crypto yuan in the future can undermine the dominance of the dollar and the euro in international payments. The last point may be of key importance from the point of view of not only economic, but also geopolitical dispositions.
The “country” understood what Chinese cryptocurrency was, why it was being introduced and whether other countries would follow China’s example.
What is CryptoYuan
China has been developing its own cryptocurrency since 2014. Beijing allocated about $ 45 billion for a project of its own cryptocurrency.
In October 2019, President Xi Jinping of China announced that the development of blockchain technology is a priority for the state and called for accelerating the development of this area.
On April 25, 2020, China launched the national blockchain platform, BSN. This is the foundation for launching a state-owned cryptocurrency called DCEP (Digital Currency Electronic Payment).
But the currency will work not only on the blockchain. The issue will take place in two stages: from the Central Bank to commercial banks, and those, in turn, will introduce crypto-yuan into circulation.
Four state-owned banks of China will issue cryptocurrencies: Agricultural Bank of China (ABC), Industrial and Commercial Bank of China, Bank of China and China Construction Bank.
Cryptoyuan will be of two types: for commercial banks and for individuals and legal entities.
One of the main tasks of the Chinese government is to use crypto yuan, as well as the paper one. Firm holders promise solid liquidity guarantees. CryptoYuan will be attached to the normal yuan in a 1: 1 ratio.