Digital Yuan: China's Way To Control People 💵

#digitalyuan #cbdc #china

When China enforced a state-wide crackdown on cryptocurrencies a couple years back, the crypto world erupted into chaos. Mining up to half of all Bitcoin currently in circulation, along with serving as the backbone for several others, prices for many coins dropped steeply in response to Chinese miners being shut down rapidly in several key provinces across the country.

China has long since had a reputation for tight government control, rampant censorship, and limited freedom of citizens. With an almost totalitarian government system that puts the benefit of the state and party above everything else, technologies like crypto, the internet, etc, having the potential to disrupt this trend, have always been put on a tight leash since the beginning.

However, it wasn’t until very recently that China began to strictly enforce their crypto regulations. Cracking down on miners and threatening to shut down power companies that supply them, many have speculated that this could be in the welcome of a different plan entirely.

Already acquiring the status of legal tender, Digital Yuan is now accepted as a method of payment in all first-tier banks across the country, with zero transaction fees and support on nearly all major payment platforms within China.

While other governments are still struggling to figure out if they can really “regulate” cryptocurrencies, the Chinese government on the other hand shifted the whole paradigm in their favor with this move, eliminating the need for the question itself. So let's take a look at China's Central Bank Digital Currency (CBDC) called The Digital Yuan.