Beijing: – The Chengdu city administration in China has gifted 40 million Yuan to its 200,000 citizens. This is the biggest gift given by an administration in China to its citizens. This is because the currency is in digital form. Moreover, China becomes the first country to test the use of digital currency on such a massive scale. While gifting millions of Yuan in digital form to its citizens, China has already started work on the Digital currency project with the United Arab Emirates and Thailand.
Bank of International Settlements, responsible for financial transactions on international level, recently published a report on digital currency. As per the report, 55 out of the total 65 central banks in the world are working on digital currency schemes. Through the last 6 years, the report indicates that nearly 60% of these banks must have started using digital currency in the retail sector. Therefore, it is apparent that China has initiated express moves for the use of the Digital Yuan.
China has gifted the ‘Digital Yuan’ to its citizens from four different cities and has indicated increase in digital currency in phases. This is considered to be the next step for initiating digital currency transactions with other countries. Analysts have expressed confidence that China can lead the front based on its economic and technological might if digital currency use starts on the international level with other countries.
The Chinese moves for the digital currency are believed to be a part of the comprehensive scheme to make Yuan the leading currency globally. China has taken major steps for getting Yuan approved on the international level. It has signed agreements with many countries for currency transactions and has increased use of the Yuan even in a trade. As of today, the share of Yuan in the transactions in the global economy is 4%. Whereas, it is being said that in the foreign reserves with various countries, the share of Yuan has gone up to 2.13%.
Making Yuan the international currency is in an important stage in the Chinese communist party’s ambition to pull the United States down and become the world’s superpower. China has aligned with Russia, Asia, Africa and the emerging economies from Latin America. The Chinese government has adopted the policy of increasing the use of Yuan in those countries and trade with these countries. The Chinese plan suffered a setback due to the adverse publicity on the international level on the Coronavirus pandemic issue. Therefore, China is trying to push the Yuan with expeditious actions.
A leading Japanese newspaper claimed that taking into account the current Chinese position in the global economy and the ambitions of the Chinese communist regime; it appears that the Chinese activities for digital Yuan could have a major effect on the global economy.