In the testing of the digital version of its currency, the yuan, China has achieved remarkable success. The testing has been done at Suzhou city which is near the Sanghai. 1 lakhs 81 citizens of that country are provided with 55 Yuan which is corresponding to 1000 Nepali rupees and asked them to do the expenses. The Chinese spend this money at the different shops from May 1 to May 5.
People bank’s of china, who is doing the testing of digital currency is responsible for this work, where around 5 lakhs people from 11 states of the country are included in the process. For this process, first of all the citizens are asked to download the app as a digital wallet. Using this app they can buy the goods from any market of the different cities of the country. On doing so they also get discounts from the respective shops. Digital Yuan means the digital form of Chinese Yuan and these are going to operate through the block chain process.
Block chain means such type of chain in which the information can be kept directly in a digital way through online. It helps to give the information about the money kept by a different person. I.e. which money is held by which person. Bitcoins and Ethereum Cryptocurrency are also based on this block chain process but the Digital Yuan technology is permissioned by the Chinese Government unlike other countries’ governments. The right to use the digital Yuan is under the control of People’s Bank and it will decide which digital Yuan (money) can be used by which person.
China had done such type of testing before as well in the year of 2020 but this time testing is ten times more than that of before. China is not doing this testing only inside their country but they are also doing it in the country of Hong Kong. The aim of doing this is to do business in the international world as well for ease. It is the first country to put the digital Yuan in a permissioned block chain.
Besides the People’s bank of china, the different banks of other European countries like- Federal Reserve |Bank, Bank of England and The European Central bank are very backward in this development.
The process of digital yuan is different from that of ALIPAY and WeChat Pay. The database of ALIPAY and WeChat Pay are very huge and for their control it can take about 2-3 hours to 1 day. But the digital Yuan has removed the necessities of the bank and it doesn’t even take the service charge like others. China had printed paper money in the 11 century but with time the use of paper money has been declining day by day and digital currency has taken the market.
Our country Nepal should also adapt this block chain process as fast as possible otherwise it will be more backward in the further development progress.