Everybody and their dog is making CBDC lately. It all started from china they were the first to launch CBDC in real world use case. Prior to china there was also nigerian CBDC but it never arrived on the international scale like China. And that kind of put the new race in the world of the crypto adoption.
Recently e-CNY which is a digital currency of China has been making waves on the international apps. And the foreigners who visit the china are also using the app and making use of the digital currency. This way they are getting more chinese economy exposure through the app.
Let's take a look at the e-CNY digital currency and how it is going to have an impact.
China has released a currency which is digital cash of their Yuan. And this currency would be accessible only through the china approved apps and the exchanges. So they are making sure that the currency is being used by the users for the purchase like they can do with the cash. They have released this currency in 2021 and also allowed usage in the asian games hosted there. You can check the pdf document for this digital Yuan here.
Currently more than half of the china has access to the apps and the digital yuan. The adoption has been slow and steady but soon the rural areas would be getting the digital cash in their hands. Also there would be soon some of the apps like malls, rides and the variety of the market use cases through such apps and we would know more international apps that accept it from 2025 onwards.
China has a plan to first cover their own nation before they can go for the world domination. Like they have their one of the top companies PetroChina to compete with the others while they use the internal transactions through the e-CNY. And if everything goes correct then most likely the digital cash would reach larger regions before it can be used by the international use cases.
As of now there does not seem to be any finance apps allowing the digital Yuan in their apps. And this means that if loan apps and those international loan shark companies start to use that it would be dangerous. As the digital cash would be harder to track and also harder to get refunds. If it can burn the transaction and keep the ledger private that would be another blow to the trust.
Looking at what Tiktok has done to the new generation and how much they have made them powerless, It seems like what comes from china and if the content like this say is earning digital yuan that would be something would make people pay for the stuff, they would move away from the USD to the digital yuan. And life just goes on and on as we speak there.
A lot of chinese currencies would be also under the govt watch. And they dont want the foreign currencies coming and dominating there. So they would be like hypocrite version of the digital cash. So in that context I would say other currencies are kind of like threat to china's currency and vice versa. We just have to treat anything from them very carefully.
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e-CNY is out and we would soon see many international exchanges and apps would be making use of it. And whether to accept it as a forex like pair and making use of it for profit, all those questions apply through personal lenses.
