China To Become First Country To Launch Its Digital Currency

China is aiming to become the first country in the world to launch its own digital currency.

Recently, China’s central bank has released the details regarding the Digital Currency. There has been a special program under development for five years by the name of Digital Currency Electronic Payment (DCEP).

Experts are of the view that DCEP  provokes an era of financial innovation and power to the government to control the fluctuation of money.

There are a number of similarities between the Chinese proposed digital currency and Facebook’s proposed digital currency, Libra. It is also very similar to existing digital currency like Bitcoin as China’s digital currency could be saved in the digital wallet.

However, the only difference is that China’s central bank would be able to navigate all the activities like trading and even supervise them.

This will help them protect the economy which can be in a danger because of many new payment methods.

China’s central bank chief, Yi Gang has revealed that the timeline for the launch of the digital currency is not decided yet since it needs more work. According to Reuter news agency, People’s Bank of China has legal rights to more than 50 inventions allied to digital currency.

China has been open about the disapproval of Facebook’s digital currency since they believe in digital currency being provided by the government only.

ALSO READ: EU Central Bank To Launch Their Own Digital Currency

The head of China’s digital currency has revealed that the Chinese Digital Currency will be made available through a commercial bank like physical money.  

It will follow the same model as Apple Pay and the advance Chinese payment system Alipay. For this model, a commercial bank is involved in putting the money in a digital wallet which can be downloaded on the smartphone.

This will help in tracking the exchange of money from one source to another very easily. This will help in identifying anonymous payments. It also will prevent illegal financial transactions.  

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