The Future of Chinese Yuan

 

In recent times, people living in China send money to one-another with a push of a button or a finger scan. Traditionally handling money like paying with paper money or transferring money along with the tiring process it brings, between different banks, is rare. You can exchange money in China with the convenience of sending a text message. 

Facial recognition or a scan of a QR code are the methods used nowadays by large shops and small traders to accept payments. In the western world, “face-pay” often due to security reasons is still considered suspicious. Nonetheless, we all accepted to trade our privacy for convenience when we first bought that Apple smartphone that came out that tracks every move we make and even opens by using the new exciting facial recognition technology instead of a regular mobile phone and with the rise of social media also, a long time ago.

The digital payment system that China possesses provides unparalleled financial convenience even when we’re not considering face-pay. 

In China, it’s hard to see someone who is paying with their wallet and we can safely say that in this regard China, in terms of payments, is already in the 21st century. In cities is it very rare to encounter exchanges of physical objects whether that be shells, gold or paper money as 86% of all payments are now completed digitally via mobile phone.

With the launch of its digital currency, the digital yuan, China is further stepping up its game in the exciting new crypto world, which is expected to function way beyond the digital payment system that everybody had accustomed to. Shenzhen is the place where trials of this new currency have already taken place. It is expected that the digital yuan will eventually use blockchain technology as a fundamental technology in this field. The blockchain is known as a digital system that can verify transactions and as such, it’s able to provide a universal record of all the transactions that are made. This would provide a vast number of benefits to business and consumers alike.

For further information please refer to the Yuan Pay Group website

Transactions would be made instantly so in the world of international trading, this could pose a challenge to the current standard of international transfer of currency which is known as the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

However, as today’s technology relies on internet data, transferring money around the world in three to five days is simply not good enough to do the job anymore.

Through the everyday use of blockchain digital yuan, it is way easier to stop instances of corruption humans and Artificial Intelligence can be used successfully to track whether there is money which was meant, for example for a certain project is being transferred into a private account which has nothing to do with the job attained. As a matter of fact, if we’re talking about tight encryption then it would mean that individual users because of the tightly secured technology would not be able to track your payments or your activity data.

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