Cryptocurrency is currently a serious topic for significant economies of the world as several countries are rapidly developing digital assets for their national currencies and creating a means for the integration of crypto into finance systems proper. This is especially true in China, which takes its digital yuan for an international test by the Winter Olympics scheduled to take place in Beijing in February. This particular development is a very positive one for China and global cryptocurrency development as it sets the pace for other countries and their digital currencies. Earlier the week, BIS alerted countries and their central banks to the need for the development of CBDC. However, even before this time, China had already begun work on its digital yuan with this proposed test showing how much progress the country has made.
According to projections by experts who expect the digital e-CNY to be ready by the start of the Winter Olympics, several indications show that these projections would be a reality soon. This is because the country’s central bank also accepts the projection and is working tirelessly with it as a guide and forecast. According to an official report from the PBOC, the digital yuan which would be in use during the sporting event has reached the sprint stage of development. This indicates that it’ll be ready for testing at the commencement of the Winter Olympics.
The digital yuan would undergo its first international trial during the sporting event as infrastructure to facilitate its use and acceptance have already been put in place at the Olympic venues. The event which would begin on Feb 4 would have several athletes from different countries of the world making this proposed digital yuan test a highly critical one. Its failure or success would determine how ready the world is to fully integrate and adopt cryptocurrency.
Concerns About The Digital Yuan
While the digital yuan project is regarded as a huge step in the right direction, there are uncertainties and concerns about the digital asset from various quarters. A major concern is that the currency can be a tool which the Chinese government intends to use for surveillance and tracking purposes. This is the stance of the United States as its Olympic Committee was urged to boycott the use of the digital currency declaring it a surveillance tool capable of depriving individuals of their privacy.
Digital Yuan And Its Global Impact
China as a country is very serious concerning the acceptance and use of its digital yuan which is set to undergo an international trial next year. Even before then, the e-CNY is currently being used at the ongoing Chinese National Games where the digital currency is being accepted by vendors within the event’s area.
Other financial institutions in China like banks have also provided support for the adoption of this currency thus projecting success for the performance of the currency. One thing is certain, the failure or success of this digital asset would influence the world in a significant way.