简体中文
Editor's Note:
The writer, Mr. I. Hussain Janjua is a senior media professional and analyst having experience of research & broadcast journalism in different organisations. He is a non-resident fellow of Chengdu Institute of World Affairs (CIWA). (Email: [email protected]; twitter: @ihussainjanjua)
Hundreds of years ago, there was an invention that changed the course of the world's trade, the invention of paper money or the banknotes.
This invention changed the business of human beings and the trade in goods forever. It started with China and was then called 'flying money'. The history of this ancient invention dates back to the seventh century.
Today, China has once again taken the lead in the digital currency that has transformed the world's economy. China under the leadership of President Xi Jinping, has started using digital Yuan in various cities of the country, including capital Beijing.
Contrary to this fact, other countries are also involved in the digital currency; however, china's pilot plan seems to be a serious effort to access digital currency to the general public. And now they are thinking of increasing its scope and reach. According to Bank of China the initial experiments with regard to its use reflected that its release and distribution were in harmony with the country's current economic system.
The impact of Asia's economic power decision on other economies of the world could be very significant.
The United States, after decades of continuing to dominate the world, it is under constant threat from China's growing powerful economy. According to experts, the digital Yuan could rattle American power if it succeeds in eroding the historical sovereignty of the dollar in the world for years. And if the Chinese authorities tighten its rules, its release could also stir the crypto currency market.
The Central Bank of China has already in the digital Yuan market plans to replace paper money and coins. It will be controlled by a Chinese state-run bank that will be in charge of releasing this new electronic money.
Cheaper and faster international payments as well as secure transactions are among its benefits.
Digital Yuan also free from the ills of keeping crypto currencies secret as other crypto currencies cannot be operated under one central system, nor can those provide personal information of a human being. The experts believe that digital Yuan can help the Chinese government monitor its economy and public money transactions.
The Chinese government started work on digitizing its currency in 2014, but it did not get formal permission to digitize the currency until 2017. But today they are very close to reality with a clear purpose. The efforts are under way to make it possible for the digital Yuan to reach all Chinese nationals and foreign tourists until next year's Winter Olympics in February.
According to the Bloomberg News website, US President Joe Biden's administration is keeping a close watch on the currency because some officials are concerned that the digital Yuan could emerge as a long-term offer to some countries in the world and dominate the dollar as a reserve currency in the world.
Bloomberg says US officials are increasing their efforts to understand how this digital Yuan will be distributed and how it can be used to avoid U.S. sanctions. However, China has tried to address these concerns. "This digital Yuan is not intended to replace the US dollar or any international currency,’ says Chinese central bank official. "Our aim is to facilitate the global market to choose and make international trade and investment," he added. '
He added, "China has great ambitions. It wants to bring their country to the top countries internationally that can be involved in decision-making on the world, and I am not surprised that they are taking (digital Yuan) very seriously.'
Contrary to this fact, other crypto currencies provide different services from China's digital Yuan, but there are still a large number of individuals who claim that China's digital Yuan project could be a threat to this kind of money market.
This is what Philip Gillespie, who is currently the CEO of B2C2, one of the world's largest crypto currency exchange companies, has to say. "Once digital Yuan is introduced, it will be a major threat to other crypto currencies," he told Bloomberg. '
(ASIA PACIFIC DAILY)
