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China Creates Its Own Digital Currency


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The digital yuan seen on a mobile phone.

Chinas version of a digital currency is controlled by its central bank, which will issue the new electronic money. It is expected to give Chinas government vast new tools to monitor both its economy and its people.

Credit: Barcroft Media/Getty Images

China's digital yuan cryptocurrency is expected to give its government a vast economic and social monitoring tool, and strip users of their anonymity.

Beijing is preparing the digital currency for international use, and designing it to be unconnected to the global financial system, to permit more centralized control.

The cryptocurrency is accessible from the owner's cellphone or on a card, and it may be spent without an online connection.

Analysts and economists say the digital yuan could gain a foothold on the fringes of the international financial system, allowing people in impoverished nations to transfer money internationally.

With a trackable digital currency, China's government could impose and collect fines as soon as an infraction is detected, or enable parties sanctioned by the U.S. to exchange money outside of sanctions.

From The Wall Street Journal
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Abstracts Copyright © 2021 SmithBucklin, Washington, DC, USA


 

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