China Moves To Popularize Digital Yuan, Woos Shiba Inu 

China Moves To Popularize Digital Yuan, Woos Shiba Inu 

As a critical step in the country’s currency’s digitization process, a central bank official in China has underlined how the Digital Yuan (e-CNY) must be usable for all retail transactions. China has yet to embrace e-CNY despite the country’s continuous trials.

The People’s Bank of China (PBOC) has been gradually expanding its digital yuan trials since its initial trials in late 2019. Investigation reveals that at least 26 locations, comprising 17 cities and regions at the provincial level, have been covered by the project thus far. The current development has been described as evidence of the government’s bold attempts to update its financial system and currency.

The latest move by the PBOC The launch of a pilot app in January 2022 marked a step in this direction by giving citizens a seamless digital yuan transaction experience. Observation shows that amid these continuous tests and online campaigns, the e-CNY still needs to gain the intended national acceptance level.

China’s Digital Currency Institute, Others Discussion The Digital Yuan

In a recent statement to this effect, Mu Changchun, the Director-General of the PBOC’s Digital Currency Institute, discussed this matter and emphasized how crucial it is to enable e-CNY for all retail payments. He emphasized the importance of a smooth switchover from cash to digital currency.

Using smart contracts to enhance the e-CNY system was one of the tactics Mu covered. Mu Changchun explained that smart contracts can improve the efficiency of large-scale wholesale payments by streamlining intricate procedures like payment delivery versus payment (PDVP) and payment versus payment (PVP).

This technology is anticipated to improve the efficiency and security of digital yuan transactions. Mu further underlined that the objective is to foster peaceful coexistence rather than to replace current electronic payment methods or commercial bank deposits. It is the goal of e-CNY to complement these well-established systems by giving customers additional options and flexibility when it comes to their financial transactions.

China’s Idea of a Digital Yuan May Have Impact Outside China 

This action is in line with China’s larger digitalization objectives, which strongly emphasize innovation and technology as engines of economic growth. To keep itself at the forefront of the world economy, the government has been aggressively pushing digital technologies in several industries, including finance.

China’s efforts to create a digital yuan also have effects outside of its boundaries. The article on the AMBCrypto platform explained that if fully implemented, it could change how people pay for goods and services internationally and strengthen the yuan’s position as a reserve currency. 

Digital Yuan Official Integration Uncertain, ShibArmy Linked To SHIB’s Success

Random opinions from the X platform say that Mu’s demand for smart contract integration and accessibility highlights the central bank’s commitment to making the digital yuan a cornerstone of China’s financial system.

Meanwhile, Shiba Inu has been described as an Ethereum-based ERC-20 token, which gained popularity because of its ever-effective SHIB online community (also referred to as the ShibArmy). Another factor linked to the fast-increasing dominance of Shiba Inu is its online influencer,  Elon Musk, who is being fingered as one of the strongest influencers. 

The so-called ShibArmy has been associated with the 27,000,000% increase in the price of SHIB starting from January to October 2021. The company introduced the ShibaSwap in July 2021 as a Shiba Inu token decentralized exchange while using the Automated Market Maker (AMM) protocol.

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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