The digital yuan is China's digital currency that will replace the yuan in its physical...

jsilva

Posts: 19   +0
Staff
In context: Most of us have been paying for goods and services digitally using services such as PayPal and Skrill, but that doesn't mean we are doing it with digital currency. However, China plans to completely replace the yuan in its physical form in favor of its digital currency, the digital yuan.

Unlike Bitcoin, Ethereum, and other cryptocurrencies, the digital yuan is a digital currency plain and simple. Instead of promoting a decentralized and anonymous system similar to that of crypto, the digital yuan is based on a centralized system controlled by the People's Bank of China. In this system, the Chinese government can track every digital yuan movement, allowing it to see how people are using the currency.

The digital yuan will work similarly to other virtual payment systems. Users can make operations through an app or a card that won't require online connectivity. Up to now, the app has already been downloaded by more than 100,000 users. Early adopters have received small amounts of digital yuan to test the system, which allowed them to spend on merchants like Starbucks and McDonalds.

At a certain point in time, the digital yuan will eventually replace the paper yuan. For every digital yuan issued, a physical yuan will be cancelled, preventing the introduction of more money into circulation.

China also plans to expand its new digital currency to other countries, providing faster and cheaper international payments for business and consumers. The digital yuan is being developed by the People's Bank of China since 2014, back when one Bitcoin was worth less than $1,000.

China isn't the only country developing a digital currency. There are currently more than 60 countries developing or studying the possibility of introducing their own digital currency. Sweden, for example, has already tested the use of a digital krona. The Bahamas have also issued a digital currency called the Sand Dollar, which is available to all citizens.

As for a digital U.S. dollar, treasury secretary Janet Yellen thinks "it makes sense for central banks to be looking at it." Jerome Powell, the federal reserve chairman, has also commented on it, stating it is a "high priority project for us."

Image credit: Li Hao/Global Times

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NightAntilli

Posts: 493   +547
The control over Chinese people by means of cameras is already scandalous. Now, the communist government will have even more control over those disgraced citizens. To be born in China is a big bad karma, evidently.
The same thing will happen with the USD.

What's the security though? What stops duplication outside of a blockchain?

And then of course China is the one to push this first. Trying to get every ounce of control over their citizens...
The only thing that stops duplication without a blockchain is centralized control, of course. If you do something they don't like, whether it's an attempt to double spend, launder money, or share an opinion that they don't like, they can simply freeze your money and make it impossible for you to have access to standard services.

This is why cryptocurrencies remain important. No one can stop you from using them. The battle between eternal oppression and freedom is happening right now on a global scale. And unfortunately, there are way too many people on the side of oppression.
 

psycros

Posts: 3,363   +3,804
Scary control over the citizens with that.

China has never really been democratic, not even in early 20th century - dictatorship has always been the rule rather than the exception. They are a society that worships status and money above all else, something that half a century of hard-line communism could never fully suppress.
 

Austinturner

Posts: 115   +116
Are many people actually using physical cash anymore? I haven’t used it much for years. Almost every market stall, cafe or small business in australia takes card and we now have s national fast payment network which bank transfers work for selling second hand stuff privately with a simple PayID.
 

Adi6293

Posts: 724   +970
Are many people actually using physical cash anymore? I haven’t used it much for years. Almost every market stall, cafe or small business in australia takes card and we now have s national fast payment network which bank transfers work for selling second hand stuff privately with a simple PayID.

I use cash quite often, I definitely don't want a cashless society, that is the end of the road for normal people.....
 

Austinturner

Posts: 115   +116
I use cash quite often, I definitely don't want a cashless society, that is the end of the road for normal people.....
Do you use it for anonymity or shops in your country don’t take card payments?

I’m not fussed if there is cash or not, though I would hope that if we went to a digital currency in Australia police would still need a warrant to access transaction history as they do with bank records.
 

ypsylon

Posts: 307   +206
Beyond 1984...

China and other digital dictatorships outthinking what Orwell wrote in so many ways.

Cash. I would use it only exclusively if I could, but it simply is not possible, especially living far away from big urban centers. Governments (salaries only on-line) and corporations (subscriptions/passes) neatly, smoothly transferring peoples livelihood into permanent on-line status. Cash is last refuge of normalcy, of keeping permanent surveillance away.

I'm amazed how lazy people actually are that they swallowed cards so easily. Anyone who believe that any kind of IRS-institution doesn't have 24/7 access to your bank account is badly mistaken.

I'll explain on example. Country in EU. If I want to buy for example RTX3090 which is now like ~4000USD or whatever reasonably expensive, I have to buy it on credit or leasing or whatever. So you have to get entangled into instalment payments so banks/state will earn their cut on prolonging purchase - longer the better. If you buy it outright that's worst thing you can do for the State (and you have honestly earned money in the bank) they'll make your life miserable next year when you have to pay taxes. It's that's f-up. That's why cash is better. I can buy what I want, where I want, leave no digital fingerprints and F-O government. You think that criminals use online payments? No they still move suitcases/containers of cash. Cash in hand = money you have. Money on-line - illusory etherium (pun not intended, but very apt) which can be shutdown/deleted with a press of a button.

I have Friend in Ireland which is infinitely more advanced place than where I live. He doesn't have a phone, he doesn't have a card, he doesn't have a bank account. He pays only in cash. I said once: Dude how you manage in this day and age without at least 2 of those things. I applaud his conviction, wish I could that, but there are some assets which I can obtain only on-line (anyone familiar with 3D knows the stuff).
 

gabelogan1324

Posts: 15   +7
If you mean controlling over their people, that's always been there. Try get a conversation going on Tiananmen and most barely know what it is. The stride for purified capitalism, I think that leader they had up until the 90's kicked off. Deng Xiaoping, I think his name was.
yea I think thats his name. I watched a doc on it recently and that rings a bell.
 
Are many people actually using physical cash anymore? I haven’t used it much for years. Almost every market stall, cafe or small business in australia takes card and we now have s national fast payment network which bank transfers work for selling second hand stuff privately with a simple PayID.

Some transactions are best handled through a physical medium of exchange (say, a corner kiosk selling snacks, or a hot dog cart). And if the tech breaks down, you'd be reduced to exchanging IOU notes anyway, so wouldn't it be better to keep some physical legal tender in circulation, if only as a backup? (The same way you'd want printouts of critical information in case of data corruption?)
 

Austinturner

Posts: 115   +116
Some transactions are best handled through a physical medium of exchange (say, a corner kiosk selling snacks, or a hot dog cart). And if the tech breaks down, you'd be reduced to exchanging IOU notes anyway, so wouldn't it be better to keep some physical legal tender in circulation, if only as a backup? (The same way you'd want printouts of critical information in case of data corruption?)
Honestly I find not giving change has sped those hot dog stands etc up a lot, a tap and go payment is very fast.

I keep a little bit of cash at home, but don’t expect to ever need to use it. I think your point about resiliency is good, but I doubt nations have anywhere near enough cash reserves to function with them if digital systems had a serious hiccup. I could see cash trading at an immediate premium!
 

Adi6293

Posts: 724   +970
Do you use it for anonymity or shops in your country don’t take card payments?

I’m not fussed if there is cash or not, though I would hope that if we went to a digital currency in Australia police would still need a warrant to access transaction history as they do with bank records.

I usually use it for small payments like under £5, I'm not some criminal and have nothing to hide I just think that banks and governments already have too much power they really don't need more.

Edit. I also like to see a physical representation of the "value" of money, if it was just a number in a bank it would not longer be money to me
 

Austinturner

Posts: 115   +116
What's going on in China its really scary and I really hope that we in the west won't allow our governments this much control
I suspect that many people would have to have switched fully digital out of preference first well before democracies abolished cash, however I believe the abolition of cash is inevitable in many countries (places like the united states would be less likely due to their politics and tipping culture).

I don’t really mind, I can understand why people would be concerned about transaction privacy, on the flip side is that privacy is hiding taxable and illegal transactions (Australia estimates this as about 3% of gdp).
 

Theinsanegamer

Posts: 2,301   +3,241
Do you use it for anonymity or shops in your country don’t take card payments?

I’m not fussed if there is cash or not, though I would hope that if we went to a digital currency in Australia police would still need a warrant to access transaction history as they do with bank records.
I use it for small purchases because the physical act of giving someone money leaves a greater impact on you then using a digital method like a CC.

And IME, for quick purchases cash is quicker. Even if you take your CC out ahead of time you have to wait for that stupid card reader to read it, then display your total, then confirm it, thent he cashier has to confirm it, then sometimes you have to sign anyway, ece. Cash I can have the right amount ready when I get tot he counter, put it down, and leave.

There's also bank control. I dont want banks to know everything about me, they have way too much power as is. Especially if it's an independent shop, I'd rather as much money as possible go to them instead of being sucked up by transaction fees.

There's also things like flea markets and hobby shows to consider, where everything is done in cash.
 

misor

Posts: 1,415   +319
It is just a form of e-wallet by the government.

in the Philippines, globe telecom has Gcash, that can be used to pay/buy globe telecom services and buy from merchant partners.