Are digital currencies the future of payments?

Digital currency is responsible for changing society's viewpoint towards money and payment options. As society has faced the rise in bitcoin, ethereum, and other cryptos. It has pushed global central banks to perform research on how digital currencies work worldwide. When it comes to seeing which country has seen the promising growth for implementing digital currency in their nation. China tops the list, it has made impeccable growth with its digital currency "yuan". This currency is responsible for the success of the pilot in Suzhou City. Here 1,80,000 customers have given ￥55 free money in their digital wallets.

?So that they can spend it in the outlets of Double Fifth Shopping Festival. It was part of People Bank of China which has targeted 5,00,000 customers in 11 Chinese regions. Those who are eligible for using the digital currency can download the digital wallet for making the purchase. The Chinese digital currency " yuan" is part of the Chinese currency deployed on the blockchain. Chinese digital currency is tamper-proof and works with online ledger techniques which underpin digital coins such as bitcoin and ethereum.

?"Yuan" is also used in cross-border transactions and currently developing the platform for international markets such as Thailand and UAE. Therefore, China has become the first country to put its currency fully on the blockchain. Various businesses and individuals of China are receiving the digital yuan through commercial banks. The government of China is seeing its digital currency "yuan" be launched on the international market. But at present, it's working to help domestic customers specifically.

?A company named ULIS Fintech that works globally provides the secure and safest payment gateway ecosystem for investing, buying, and selling digital currencies.

?What benefits does digital currency "yuan" bring?

Financial inclusion

With the digital currency "yuan", the central banks of China will have footholds. Therefore, it will have full control over the digital payment gateway ecosystem. Yuan has brought China's unbanked population to the mainstream economy, can track the money flows better, and can fight financial crimes. "Yuan" will also make the payment transaction effective, efficient, timely, and cost less. Hence, it promotes financial inclusion. As the Chinese government will make its digital currency available to the outside world, s border transactions can become easy. Also, Chinese business owners are pushing the " yuan" towards making it the reserve currency.

?Timely support

With "yuan" most of the Chinese firms and Fintech companies get the most benefit. It will help the small and medium-sized businesses to receive finance easily. Because the banks have a better knowledge of how companies will effectively use the loans. Hence, it will reduce the financial risks and offer more security. Yuan will perform all the digital aspects such as issuance, circulation, storage, investment, and cross-border transactions. Soon, the Fintech companies will move forward at best with the digital currency. Because Chinese digitalization is growing at a massive speed, it's rolling out with digital currency well. With digital currency, China will have a 30% increase in its GDP rate in 2020 and can take full advantage by the year 2028 or as early by 2026.

?Early days

The Chinese central banks started the "yuan" project in 22014 through the pilot project in Shenzhen, Suzhou, Chengdu, and Xiong. And by August 2020, this project has been expanded to 28 cities. This plan will see more growth by 2022. The Chinese Central Bank of Hong Kong monetary authority is planning to launch this currency to cross borders soon. But there is one challenge with "yuan": whether people will accept this digital currency in the form of payments or not. With blockchain digital currency technology, the authorities of China can easily monitor cross-border transactions. China's government is also trying to fully launch its digital currency to the Chinese markets by developing a traditional China's financial system.

?Test and trial

In terms of the global market, "yuan" will be the competitive currency because businesses are well versed in using cryptos. China will continue to grow their digital currency if they get the lead from other central banks globally. Hence, 'yuan" will be tested effectively for performing the cross borders and market capturing. It will also be tested in terms of lot payment such as salaries, fees, and taxes through "yuan". For emerging globally, Chinese digital currency will surely take up time but as compared to other forms of payments, it will surely pass.

?These are the few advantages " yuan" will enjoy in the future in terms of payments. And yes, digital currency is for sure the future money. You should contact ULIS Fintech for getting the right ecosystem for investing and operating the business with digital currency. They are available through their website at www.ulisfintech.com. contact them and get your business solutions today.