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Digital Yuan is a government currency in a digital form. For example, cash is converted into digital coins. The Chinese government is working on the digital Yuan and wants its citizens to accept digital Yuan for retail payments. The trading App Chinese government has banned other digital in china which means that people have only one option left digital Yuan. It has started its trial in some of its major cities and is ready to start the cross-border trials of digital Yuan. Through the digital Yuan, it has become easy for the government to collect taxes, speculate the flow of money in the markets and the preferable investments of Chinese citizens.
Digital Yuan is currently facilitating some benefits: ease of cross-border payments, cost-efficient transactions bypassing all the intermediaries, and speed of transactions. In addition, it can settle oversea transactions in minutes. Some the industries like tech, gaming, tourism and small-scale business are some of the industries that are coming forward to accept digital Yuan at an early stage. For example, Thailand is to accept the digital Yuan to increase tourism of china to their country.
Companies that are looking forward to accepting digital Yuan: –
JD.com: –
It is a Chinese e-commerce company ready to accept digital Yuan at its E-commerce platform for the first time in a single day. Although the digital Yuan or e-CNY has yet to be officially launched, JD still wants to accept it in its biggest shopping event. It is also pushing China’s central bank to start the actual world trial of the digital Yuan at a large scale and start the cross-border trial of the digital Yuan in the world.
It is assumed that JD has promoted the digital Yuan in its single-day promotion period.
JD shared a link through which if people type e-CNY on the JD’s app, they will be redirected to download the digital Yuan app. The users who download the app through the provided link will get 15 Yuan to spend, equal to 2.34$. JD is working hard to make the app successful in a short period.
Retail Industries: –
Some retail industries are currently ready to use the digital Yuan as the digital Yuan comes with several benefits that fiat currency cannot offer. For example, Digital Yuan offers cost-efficient transactions and also completes the transactions in minutes.
The industries that have benefited from the digital Yuan are small-scale industries, and through e-CNY, they can continue their business 24/7 with easy cross-border payments. In addition, banks can also support the users’ credit limits up to fixed limits according to the user’s accounts statement. These facilities can be available to users during bank holidays or national events.
The introduction of the digital Yuan has decreased the cost of businesses by eliminating intermediaries and processing payments directly into users’ accounts to merchants and vice versa.
Tech industries: –
Tech industries are getting benefits through the use of digital Yuan as people will become more digitalized, and the use of technology in daily life increases if we adopt digital Yuan or move toward complete digitalization. The people of china will be able to use other financial apps. We Chat and Ali pay are currently serving their services for payment transfers. If the crowd can shift to the use of digital Yuan, it will surely benefit the tech industries related to digital Yuan. It will create more job opportunities for the citizens of china as more people can connect to the technology advancement.
It will also benefit the retail merchants as they can get the support of a vast customer base of digital Yuan. Tech industries can carry out their operations without hindrance, like government interference. It will take time to reach the desired heights. Till then, there is a need to push people to adopt the newest technology in china.
Final thoughts: –
These are some of the industries that are adopting the digital Yuan at an early stage. Not only are these industries getting the benefits of digital Yuan, but the customers and tech workers related to it are also getting benefits of digital Yuan. Still, some people will hesitate to use digital Yuan to make domestic payments. The Chinese government has to work hard to make the project successful and convenient to reach the lower class of the Chinese population. Although, it is a significant step taken by the Chinese government to make the economy digital.
