Pic credit - Wall Street Journal. Digital currency with more privacy can make more people adopt it, Recently China adopted a new digital currency technique called Digital Yuan. Digital currency is viable, easy to use, safe, and also very fast to transact. There are many options like Apple Pay, Samsung Pay, and Google Pay available but the digital yuan is easier and faster than all other options available. The most notable thing which comes is the currency will soon also be available for offline use so that people won't have the issue paying the bills in remote areas where there are some network issues. With all of this comes a point which we all need to know is the transaction fees and that is totally 0 for now (p.s. especially for merchants for now) so it's just like using your normal currency which we use now. The UI of the digital application just looks like the real note in the digital format as shown above. The digital currency can also be scanned via barcode scanners.
PRIVACY -
As of now many people not only in other countries but also in China use other digital means like Apple Pay, Google Pay, Ali Pay, and many more which are all third-party methods that are not directly connected with the main Central Bank, so the Digital Yuan introduced by the Chinese government is directly connected to Central Bank of China so no third party interaction. This will reduce the risk of getting hacked and losing money drastically. But there are some disadvantages too and that is the central bank will have the whole detailed information about where the person spent the money to which particular person that person used his money and all this can make an impact on foreign traders which means the Chinese Central Bank will have the information about the foreign transactions too. Not only that the method is also under work in other major countries like the USA & Japan.
CONCLUSION -
Normally I don't talk much about Chinese development, but with this said now what about India, is there any chance of adopting it? I guess there are chances for now it is right for India to observe and then react. If this hurts foreign trade then this will be the most negative effect on the traders. So it's better to get to know things quietly as the Indian government cannot be like the Chinese so it is better to know more about things and also to find out how will this affect the economy. And if this all fits in the right place then these things can be the green signal for a country like India to use this too as this will give a major mobile technology growth in the country.
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