A trial running for the Chinese virtual currency has started in two cities of China, i.e., Shenzhen and Suzhou. At the end of the trial, the banks and consumers in China will be able to access the digital currency.
Recently, China banned the use of a global cryptocurrency, i.e., Bitcoin. The trade using a digital currency is anonymous and untraceable, which was uncontrolled by China. The country is preventing it by owning its cryptocurrency. Digital currencies will help in minimizing cost, increase productivity, and be more reliable.
The Chinese government can easily track the trade in its cryptocurrency. The authorities will get an idea regarding the people who are invading tax and who are laundering the money in the country.
It is a fact that people using cryptocurrency may face problems like individual privacy and financial autonomy. The country has to control these issues, which are the wrong side of it. On the other hand, the digital currency helps China to become a global leader in economic trade and leads the position on the worldwide list.
In 2014, China became the leading global goods trader and overtook the United States. Now, China is the biggest exporter across the world, and it has lasted for the last ten years. But, then, also the international trade and transactions are maintained in US dollars and imposed by Americans.
The digital currency of China will be a big step in the country’s economy. It will get rid of the monopoly of the US dollar. There will be Chinese cryptocurrency in its trade ecosystem.
There is a massive market for the virtual currency. In 2010, the currency share of China in comparison with foreign trade was only 1%. In the next four years, it increased by 28%.
In 2016, the International Monetary Fund incorporated the Renminbi or RMB of China as an international reserve. In 2018, Germany got rid of digital currency by saying that it is a very risky idea for the country.