China Made Virtual Yuan Currency To Compete With Bitcoin

China makes digital Yuan currency to compete with bitcoin (News Bitcoin)

JAKARTA - China intends to compete with bitcoin by presenting a digital Yuan currency. The Chinese government plans to distribute money to its residents in large amounts, namely USD 6 million if converted into rupiah, this amount is equivalent to IDR 84 billion.

It is a resident of the city of Chengdu, located in the southwestern region of China, who will receive this amount of digital Yuan. This is done as a test form before the digital currency is launched.

The amount of money distributed is claimed to be greater than the amount ever distributed in the city of Beijing, which amounted to 1.5 million US dollars. The funds distributed in large amounts can be used for shopping on the JD.com eCommerce site and a number of predefined merchants.

Prior to Chengdu, China had conducted trials in several other cities, namely Shenzen and Suzhou. The city of Chengdu announced that its citizens could sign up for a program to be drawn to win 200.000 vouchers. Each voucher contains digital Yuan currency amounting to 27 US dollars to 37 US dollars.

Based on a report from CNBC International, the trial in the city of Chengdu is still related to the Chinese New Year, the local government is partnering with a number of local retail stores and also the JD.com e-commerce. Later, the winners of the lottery can use these vouchers from March 3 to 19.

Recently, the use of non-cash payment systems has been increasingly being used by many people. Consumers also carry out online transactions as the main method in China. The most widely used in China is the Alipay application, which has previously worked with Tencent's WeChat Pay and Alibaba.

The Chinese government has made its own digital currency by forming the Central Bank Digital Currency (CBDC). This digital money central bank was created to function as a payment application.

This is what distinguishes bitcoin cryptocurrency from the Chinese digital Yuan. Because bitcoin is decentralized, meaning that no single central bank or individual can control the cryptocurrency. Therefore, bitcoin could bubble up.