Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Expert Chaslau Koniukh
Analytics

Analyst Chaslau Koniukh: Chinese digital yuan threatens dollar

18.07.2020
2 min read

How can the Chinese digital yuan change the payment infrastructure

The emergence of digital currencies poses a significant threat to the financial system, but so far traditional and electronic money have managed to coexist together. However, everything may change soon – the Chinese digital yuan has already passed the test in 4 major cities of the country, and is ready to conquer other markets. In this regard, U.S. sanctions will not be as effective as the White House would like. Analyst Chaslau Koniukh shared his thoughts on how China’s electronic economy will develop and its impact on global processes.
In 2014, Chinese experts conducted a study and came to the conclusion that the digital currency, which will be controlled by the government, will allow the economy to develop much faster. Since then, the development of the digital yuan has started. This currency is different from the popular bitcoin, as the latter uses peer-to-peer technology, decentralized, which ensures confidentiality and security of payment transactions. The new yuan is hyper-centralized and its rate is controlled by the Central Bank of China and its system is integrated. The currency is expected to be subject to a two-tier structure – the country’s main regulator will create digital coins and send them to other state financial institutions and payment systems such as Alipay and WeChat. The latter will expand e-money users through a mobile banking platform and special applications.
In this case, the Central Bank monitors each transaction and makes an instant transfer of funds from one account to another.
Specialists are improving the structure of the digital yuan in order to rid it of the shortcomings of other cryptographic currencies: unstable value, limited application and lack of legitimacy in a number of states. It is convenient for China to use this type of money for internal payment transactions in retail.

Chaslau Koniukh notes that the electronic money system makes it possible to conduct transactions bypassing the dollar and financial control by the United States. A number of banks from other countries are also working on using smart contracts to be able to transmit messages through digital currency.
The digital yuan also serves strategic purposes. It can be used as a tool in trade conflict with the United States to undermine Washington’s influence. According to Beijing’s official statement, the new electronic system will help the country develop technologically. In addition, the central bank will be able to prevent illegal activities, and the authorities will be able to control political processes and identify dissidents.
However, the US is also working to create digital money to improve the payment infrastructure. This now seems to be extremely difficult, as this currency can become a competitor to the systems that many technology companies have developed.

Tags: Analytics
0
Previous Post Free margin and leverage: basic concepts on the Forex exchange Next Post Alibaba Group: the secret of success from the founders of Aliexpress

You Might Also Like

IT sector
Analytics
Is the IT sector facing a crisis: analysts’ view
10.11.2021
abandoning the dollar
Analytics
China and Russia are gradually abandoning the dollar
29.01.2021
US stock market
Analytics
Oksana Kholodenko, BCS World of Investments: the US stock market is at record highs
15.11.2021
rise in oil prices
Analytics
IEA: whether to expect oil prices to rise by 2040
04.04.2021
space industry
Analytics
Why the space industry deserves attention: a review by Freedom Finance
09.05.2021
Yandex will buy Tinkoff
Analytics
Yandex will buy Tinkoff: what do we know about the deal?
10.03.2021

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics