For decades, China has been silently working with the aim of slowly pulling the rug from under the feet of the US dollar insulting to the global financial system, and it hopes today that the digital yuan can gain more ground In how consumers spend their money, and achieve its goal of breaking the grip of the American currency
confirming this context, the Chinese e-commerce company JD.com announced that it has become the first online platform to accept the country's digital currency, thus opening the way to many shopping sites In China, to accept the digital yuan, as JD Digits, the financial arm of the second largest e-commerce company in China, has also announced that there will be 20 million yuan (3 million dollars) available via lottery where it will release 100,000 digital vouchers.
This is not the first time that China distributed a large amount of its digital currency as part of its promotional and experimental campaign to launch the first sovereign digital currency, as it last October distributed A total of 10 million yuan for citizens. The People's Bank of China indicated last month that 4 million financial transactions were made using the digital yuan worth two billion yuan ($ 300 million).
So there is an acceleration of the actual spread of the use of the digital yuan, and the Chinese central bank has become the most advanced in introducing a digital currency compared to other major central banks, which are still in the framework of planning and envisioning the launch Its digital currencies
and this leads us to a question about the nature of the digital yuan ? Initially, it is a digital currency that China began working on since 2014, but it did not announce very few details about it until last year, when the Bank of China and with it major central banks felt the possibility of restricting their control over money flows, with the great momentum that cryptocurrencies such as Bitcoin had received.
and unlike cryptocurrencies, which are decentralized, the Chinese central bank controls and issues the digital yuan, which may give more stability to the financial system and control that gives the Chinese central bank a greater view of how funds flow About the Chinese economy and thus trace any illegal operations
Goldman Sachs expects that the digital yuan will make up 15% of total depreciation payments over 10 years, helping commercial banks gain more ground from fintech companies
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and if these are China's goals in offering digital currency domestically, then the second largest economy around the world has a long-term goal of broadening its currency internationally and ending the dominance of the dollar on the scene Global, and the digital yuan may help in this step as it is easy to encourage users in other countries to use the yuan in payments ...