The DC/EP stands for digital currency electronic payment, also named digital Yuan, like “real” money. Still, it is uniquely the only form of digital currency developed and issued by a sovereign nation-state. Moreover, you will get live customer support. It is the country’s first official digital currency. The China Banknote Printing and Minting Corporation is responsible for printing DC/EPs. If you want to be part of Yuan Pay group community, registration starts now!
The DC/EP has many benefits, including making transactions easier with reduced fraud and lower costs and reducing the environmental impact of physical banknotes. In addition, consumers can use this electronic payment option without having a bank account or credit card or paying transaction fees.
The advantages of the Digital Yuan over the “real” Yuan:
Unlike the “real” currency, the DC/EP allows users to transfer money within seconds. It is also possible to transfer money internationally. Furthermore, users can use cell phones or computers to make transactions without additional costs. In addition, the digital currency is safe and secure, as it does not involve users having personal information stolen or accounts being hacked into for stealing funds electronically, as has been feared in some countries with digital currencies like Bitcoin or Litecoin.
The digital currency is made of a unique code that cannot have altered once it has been created. The DC/EP can only be obtained from the China Banknote Printing and Minting Corporation and must be converted to real currency immediately after the transaction. The digital currency can only have a use case for credit transfer, value-added services, information exchange, social networking, and other non-commercial purposes.
Related Post
The Digital Yuan will significantly reduce the cost of printing paper money and the environmental impact of physical banknotes. For example, in 2014 alone, it took about 12 billion yuan worth of copper to create all the coins in circulation then. In addition, paper money has to be replaced every 2-3 years due to wear and tear or ink fading.
How does the digital Yuan completely fit in the financial segment of china?
The digital currency of china fits in not only the financial segment but also the electronic payment sector and electronic transactions. Moreover, as a national digital currency, DC/EP and its blockchain technology have gained attention which has opened new possibilities for the implementation of new applications as well as exchange-based on top of it.
And this kind of digital currency is suitable for china and Chinese people and for other countries that are pursuing to introduce of this kind of digital currency system, such as Russia, Japan, South Korea, etc.
One of the first use cases being developed is how to use DC/EPs to become “the next bitcoin” or “the next ethereum .” In addition, Digital Yuan, the country’s first official electronic payment system, is being developed to serve as a cheaper and more convenient alternative for those who wish to transfer money digitally.
Other use cases that are possible in China include the ability of consumers to conduct online transactions on their cell phones instead of having to open a bank account. The government also hopes companies will use the DC/EP to electronically pay contractors, drivers, and other service providers to reduce fraud and increase efficiency. They plan on rolling out the system before the end of this year or early next year to ensure it is ready for mass use before opening up even more financial sectors.
The future of the digital Yuan in china:
Whether this could threaten the traditional banking system and China’s economy remains an important question.
The introduction of a CBDC would allow the PBOC to inject more liquidity into the financial system while at the same time reducing volatility and monetary risk. In addition, it would also help protect against inflation as prices generally increase on average when the money supply rises. However, China has a unique opportunity to lead in developing blockchain technology, and a CBDC can be an impetus for it to do so. For example, blockchain technology could become even more mainstream since it would allow the government to monitor all transactions but not be concerned about the privacy of personal information.
In addition, China can take advantage of the transparency of the blockchain protocol to establish a social credit system. It could greatly help with their fight against corruption and improve their human rights protection at the same time. Thus, using digital currency and blockchain technology as an economic tool, China has tremendous potential and opportunities that other countries cannot match.
By adopting a CBDC and blockchain technology, China may be able to increase the efficiency of its banking system, which is necessary to maintain its economic growth. By increasing liquidity through a CBDC, banks can decrease the capital they have to keep in reserve and make more loans. As a result, it would increase the supply of credit in the economy, which could help stimulate China’s domestic economy. Moreover, if the PBOC could use blockchain technology to monitor banks’ activities via real-time financial data, this would significantly improve their ability to monitor inflation and help mitigate monetary risks.
