China's Digital Currency Test

Today, the emergence of digital currency has become a very popular topic. With daily news on cryptocurrencies, such as Bitcoin, to nations wanting to transition to a ‘cashless’ society, people all over the world have reasons to support or not support digital currency.

              On October 12, 2020, it became official that China has handed out 10 million yuan, which is about $1.5 million, of its digital currency to a host of citizens. The citizens who received the funds were winners of a lottery the Shenzhen government put together. Where nearly 2 million people applied and 50,000 people were actually winners. These winners are now able to download a digital app to receive their digital yuan and spend it at more than 3,000 locations in Shenzhen. Some of the participating stores and merchants include supermarkets and pharmacies, in addition to big box stores such as Walmart. The digital is a centralized currency meaning it is controlled by the country’s central bank. As the digital yuan has been tested and trial ran for years, this has been the largest thus far. As central banks across the world are considering the idea of issuing digital currencies, it leads one to think ‘is this becoming the new future of money’? This news comes days after financial service and mobile payment company, Square, buys $50M in Bitcoin. As CEO, Jack Dorsey, has been an advocate for Bitcoin. Dorsey visions Bitcoin to level the playing field for nations around the world who may not have the economic power to be involved in such a monetary system. It is through these announcements why many believe digital currency will soon become the way of life.

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