China is testing a new digital currency with a pilot program. It’s set to be the first digital currency used by a major economy.
After years of development, the program began last month in four Chinese cities. Starting in May, some government workers will receive part of their paychecks in the digital currency. To use it, they need to install an app. The currency’s value is pegged to the Yuan.
Unlike other cryptocurrencies, the digital yuan is issued and backed by the Chinese central bank. It’s not decentralized and won’t provide the same anonymity as other cryptocurrencies do.
It’s not an independent currency itself, it’s just the digital version of the Chinese Renminbi (the official currency of China). In fact, there is always a central authority in this digital Renminbi system, that’s the Chinese communist regime.