During the coronavirus epidemic, China has begun to actively bring 'digital yuan' into business practice, while addressing illegal activities in the banking sector and overcoming the dollar situation. common in circulation.

China accelerates the use of cryptocurrencies in coronavirus epidemic

Follow Gazeta.ru, epidemiologists and banks claim coronavirus can be transmitted through banknotes and coins and this will accelerate the development of digital currencies around the world. put your digital currency into business practice, while addressing illegal activity in the banking sector and overcoming the common dollar problem in circulation.

The state of emergency in China's coronavirus infection terrifies the financial and banking industry worldwide. Infection through cash – banknotes and coins – is real. People can become infected by coming into contact with this money and accidentally rubbing the mucous membranes of their eyes and nose.

This may just be a coincidence, but right now, China has announced additional measures to exclude cash from payments. In Chinese cities, payment methods for shopping in supermarkets via smartphones have been around for a long time.

Now, China's coronavirus pneumonia pandemic states that it is ready to continue this trend. Beijing has published details about the use of digital currencies in business transactions under the control of the Central Bank of China. The digital yuan will be called a DCEP (Digital Currency Electronic Payment – a digital currency payment in a special payment system).

See also: China begins testing of DCEP digital currency issuance

Unlike other digital currencies in a decentralized system, such as bitcoin, DCEP uses a centralized management system, meaning that the electronic form of the yuan will be centralized by the Central Bank. China controls, but some commercial banks will be allowed to issue. The central bank of China will become the hub for digital currency creation and approval or blocking of transactions.

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Commercial banks will offer DCEP on behalf of customers and make transactions. Such a two-level system is similar to that used in ordinary currency issuance. But in this case, there is a significant difference: with digital currencies, central banks and governments will be able to control all transactions.

DCEP is designed to replace cash in circulation expected to help reduce black credit risk for citizens.

To ensure the security of the digital yuan, transaction information will be encrypted. To protect against hacking, it is intended to use authentication technology to ensure that money is spent by a specific citizen.

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