China will launch world's first digital currency

     Many countries are focusing on digital currency these days. 70 percent of the world's central banks are trying to adopt the digital currency. Neighboring China is busy working hard to launch the 'Digital Yuan'. China has become the front runner in the 'digital currency race', having undergone a rigorous trial over the past five months. J. Powell, the head of the Federal Reserve of America, has recently given a clear indication of the American stand on 'digital dollars' before the Parliamentary Committee.

    Many countries including European Central Bank (ECB), Sweden, Norway, Switzerland, Cambodia have started trying to introduce their own digital currency. Given China's intensive efforts, it is being speculated that China will be the first country to launch an official (universal) digital currency. In fact, for many years China has been trying to raise its currency equivalent to the American dollar.

    A new path was opened after cryptocurrency was introduced. In this direction, China's first unfulfilled ambition, again in 2018-19 boom. People's Bank of China (Central Bank of China) along with 20 big commercial banks of the same has been fully involved in the digital currency campaign. In 2017, the Bank established the Digital Currency Research Institute to help accelerate the project, which is being used in this work.

    The central bank is also running a digital laboratory in Nanjing, the capital of Jiangsu Province. The name of Chinese currency is Renminbi (RMB), but in the international market it is called 'Yuan'. Digital Yuan was first tested in October 2020 in Shenzhen Luu (District), a city called 'Tech Hub', in December in Shiangcheng and Shenzhen Fushian District, in 2021 January in Shenzhen Jangau District, in February in Bijig adjacent to Dangchen District. In the city of Suzhou and in the last days of February, the government of Chengdu Province conducted the largest ever test involving two lakh citizens.

    A total of 4 crore (6.46 yuan = 1 USD) 'digital yuan' were distributed as a gift under test in Chengdu. The Chengdu Commercial Daily reported that the recipients of the digital yuan have been instructed to spend the gift money by 19 March. In Shenzhen, the currency gifts in the 'red packet' were distributed to the citizens under trial, there is a tradition of giving gifts in red packets on specific occasions and festivals. The inclusion of around 5.50 lakh Chinese in the six tests conducted so far proves that the launch of 'Digital Yuan' (called 'e-CNY' and 'Digital RMB') as sovereign (sovereign) currency China is breathing in a flutter. It is learned that there is a possibility of launching on a grand scale during the Winter Olympics to be held in Beijing next year.

    Pranatesh Narayan Bajpai