Samson: China is the first major economy to issue a digital currency
15:16 – 07/04/2021
The Chinese government has begun issuing a digital currency powered by blockchain technology to its citizens, which is the technology that supports cryptocurrencies such as Bitcoin and Ethereum.
To encourage its spread and circulation, China launched a lottery system, distributing coins to 750,000 of its citizens, on Tuesday, in the first official launch, where they can actually spend their digital yuan in stores and online using a special application.
This comes at a time when application-based payments are becoming very common in Chinese businesses, so merchants have been quick to adapt to the new government offer.
With the launch of the digital currency, each circulating yuan will be present as a physical or digital currency, while analysts expect the Chinese government to raise the amount of digital currency in the future, thus reducing the amount of physical currency available in the market. Some also believe that China plans to digitize all of the yuan simultaneously, according to German data company Statista.
China is the second country and the first major economy to officially launch a digital version of its currency, through blockchain technology, after the Bahamas launched its digital currency last year, known as the sand dollar, according to Bloomberg, as the currency was widely accepted by stores in the capital, Nassau.
And “Bloomberg” has identified 4 other countries that have concrete plans to launch its own digital currency, namely, South Africa, India, Pakistan and Thailand.
While a chart by “Statista” referred to a group of countries that are still exploring digital currencies, beginning with the United States, Russia, the European Union, and the United Kingdom, as well as Arab countries such as Egypt, the United Arab Emirates, and Morocco. LINK