China, the largest economy’s in the world, is planning to launch a new cryptocurrency Called “E-Yuan”. China is the seventh country on this list to launch a digital currency. A Chinese news agency “Xinhua“, confirmed that president Xi-Jinping starting to notice the importance of Cryptocurrency. They thought the Blockchain is the next-gen platform that boots the Chinese economy.
Why china Launch new currency:–
It is true that china wants to launch a new cryptocurrency. But why, here the answer. China is the largest country in population as well as the economy. The first reason is that like other countries china also has bed debt loans. China has almost $350(~￥2.5 trillion) billion-bed debt lone. Many people have multiple bed dept loans. China wants to solve this problem with the help of “E-Yuan”. They Use “E-Yuan” to track assets and liabilities to ensure that no one has multiple loans.
Second, China wants to attract new investment. After the announcement of “E-Yuan” $27 billion new investment come on the Chinese tech stock exchange “Shenzhen”. Third, China wants to recover quickly from the Covid-19 Pandemic.
Exparts view on E-Yuan:–
- Experts say, how quickly the Chinese economy accepts the new currency is in doubt.
- The state-controlled currency will never completely independent(decentralized) from the hand of the government.
- The new currency solves the Chinese bed dept problem but how long it is not predictable.
- They say, How new currency will be circulated, only banks or authorized parties will be allowed to sell.
- They also mention that “what is used as a back -up of E-Yuan?“
China is not alone in the list of countries that try to develops its own cryptocurrency. In December 2020, France also announce its own digital currency. many other countries like U.K., U.S., Hong-Kong also planning to launch a new currency. In India, there is no sign of this type of currency. The annual budget will be present soon. so say alert and click here for more news