As we have reported, China is to launch a state-backed cryptocurrency. This is a first in the world but definitely not the last. The digital coin, digital Yuan, is to be released by the People’s Bank of China early next year. In anticipation of its launch, there has been massive speculation of its use case. Well, now the former People’s Bank of China chairman has outlined three of its most immediate use cases.
Zhou Xiaochuan, the former People’s Bank of China chairman has been discussing the digital Yuan. Xiaochuan, who is one of the most respected economists in the country has outlined the digital asset’s immediate use cases. Notably, it is exactly what most analysts expected.
Digital Yuan Use Cases
First and foremost, the economist put out the most obvious use case. It will be used in retail markets by the Chinese people. Settle day to day transactions across the country. In fact, this is its most key use case.
Additionally, it will make cross-border settlements easy, fast and secure. Like most other cryptocurrencies, the digital Yuan will be an international remittance option. The coin once lined to banks will offer better inter-banking across the world. This has been one of the key reasons why China is launching a digital asset. Henceforth, China can now avoid using the US Dollar for international remittances as it continues to grow its influence across the world.
Lastly, the economist explained that digital Yuan will ensure national sovereignty. On the same, he believes that the Yuan will have competition within China which is good for its growth.
China Pushing For Mass Adoption
The launch of the digital Yuan has been a welcome concept by crypto watchers. It will expose the world to a new form of money and drive growth. China has however made clear of its disinterest in any other coin other than its own. The Chinese government has a ban on cryptocurrency trading in the country. Nevertheless, it could ultimately lead to the mass adoption of cryptocurrencies in the long run.