The digital Yuan, revolution or distraction ?

What is Yuan (Renminbi) digital developed by the Chinese central bank in recent years ? Is it a cryptocurrency ? A new payment method ? The keystone of an attempt to de-dollarize the Chinese economy ? Jean Yves Larguier returns for EastIsRed to the challenges of this surprising currency.

Birthplace of paper money, used from the VII^e century under the Tang and Song dynasties, then known to Europeans thanks to Marco Polo in the 13th century^e century, China breaks new ground again by being the first major economy to introduce its central bank digital currency.

In less than ten years, the Chinese have massively adopted digital payment thanks to the AliPay and WeChatPay applications used daily by the majority of the population whether to pay for purchases or send money to relatives. The use of cash is in constant decline.

Taking advantage of a population very receptive to the adoption of new means of payment, China is a forerunner with the introduction of the e-yuan (or e-CNY or Encore e-RMB – digital yuan, shùzì rénmínbì) while other countries are only in the exploration phase.

As digital yuan test phase intensifies, it is important to understand what are the national and international objectives sought by China and to observe the technological options chosen for its future dematerialized currency.