In China's Near Future, cash & digital currency?

 Recent statements made by the People's bank of China (PBOC), which revealed upgraded

 banknotes in late August, indicate that it will soon become the world's first country to issue digital

 currency for its central bank. Initially coexisting with its cash counterpart (the renminbi yuan), the

 latest digital currencies will replace banknotes and coins as a legal tender or sovereign money. The

 digital currency is designed to initiate domestic uses and allows retail purchases directly and

 personally, perhaps via a digital mobile wallet app. The money is backed by deposits from central

 banks, hence reducing risk like cash for consumers.

                  if China takes first-mover advantage to meet the world’s demand for use of digital currencies to settle international financial transactions and own digital                      assets, the appeal of its CBDC could rise sharply © Bloomberg

Why the hurry?

The timing of China is no accident and it follows extensive investigation by PBOC over the past five years just a few weeks after Facebook's statement about Libra coin. While many other countries are aggressively investigating CBDC, the introduction of Libra has led to a stronger central bank response. Head Economist of Dutch bank ING's expected the creation of digital currencies within the next two to three years.

             © Financial times.

The comment made by Mu Changchun, Deputy Director of Payments Department of China's Central Bank, say that Facebook's proposals threaten China's currency and monetary sovereignty. And while the use of common mobile payment applications from companies such as Tencent and Alibaba in China already makes electronic payments all-round, a central bank-based mechanism could give customers longer-term reassurance. However, China's digital currency has no official launch date, and Libra was initially scheduled to make its debut in 2020.

CBDC's benefits, so who?

Economists have called CBDC an efficient way of managing monetary policy, especially in times of economic crisis, and a tool for reducing the tax evasion. In the case of China, some analysts have suggested that a move towards a digital currency could be used as a vehicle to expand its global presence through internationalisation of the national currency. There are concerns, as opposed to decentralised cryptocurrencies and cash, both with a higher anonymity degree regarding access to digital money and the potential risks to personal financial privacy.

        

          We're conducting a Covid-19 initiative:-

           COVID-19 awareness campaign aims to reach out to 1 crore people.

(Your donation will help in providing safety Masks, face guards, goggles, shoe covers, personal water bottles, soap dispensers, foot powered sanitation stations, sanitisers, and infrared thermometers are among the protection and sanitisation supplies that will be given to affecting peoples.)

           you can donate minimum 10 rupees to save a life. 

https://www.instamojo.com/@supportindia1/