There has been speculation for years that China would launch a national blockchain-based digital currency, and that speculation is now turning into a reality. The latest news is that China will be conducting a 10 million Yuan (CNY) giveaway of the digital currency in Shenzhen. 50,000 Chinese citizens can register for the giveaway, and each of them will receive 200 CNY. Further, 3,389 stores will accept the Digital Yuan for a week between October 12 and October 18.
Basically, this is a week-long pilot experiment of the Digital Yuan, and the main point to take away from this is that the Digital Yuan is likely to launch across China, and the rest of the world, very soon, and that China is in the final stages of development where they are performing tests to ensure there are no errors.
Zooming out, although it is a testament to the strength of blockchain and crypto technology that China, one of the largest nations in the world, is getting ready to launch a blockchain-based currency, this actually is not a good thing.
Essentially, the Digital Yuan will give the Chinese government complete control of currency in China. Blockchain technology will give China the ability to watch all transactions and accounts, and to freeze, reverse, and seize money at will.
This is especially true if China eliminates physical cash after launching the Digital Yuan, which is quite possible.
In fact, since crypto is already illegal to use in China for payments, if China launches the Digital Yuan and eliminates physical cash, Chinese Citizens will literally have no legal form of money left that they truly control. In other words, if the Digital Yuan becomes the only currency in China, the government will have complete control over everyone’s money.
Thus, the Digital Yuan is clearly coming soon to China, but it is a dystopian nightmare rather than being a good thing.