China conducts one of the biggest public CBDC tests!

[Lucius]

Despite the criticisms we hear about China (mostly from the USA), there is no denying that in some respects they have moved far away from most of the more advanced countries in the world. A few days ago, a crypto lottery ended in which 10 million yuan (CBDC) was distributed, which is approximately the value of $1.5 million. 2 million people applied, and 50 000 were given the opportunity to get CBDC that they will be able to spend on 3000 merchants located in Shenzhen province.

It should be emphasized that this is only one of the steps preceded by several tests, but that this is the largest test so far and perhaps even the one after which the digital yuan will begin to be used across the country.

What exactly will the CBDC mean for China, how much and how will it affect their economy, will it be accepted by some other countries close to China, and whether it will weaken interest in Bitcoin, which has been banned from trading for years.

https://www.digitalmarketnews.com/china-conducts-one-of-the-biggest-public-cbdc-tests/


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[Bttzed03]

~ What exactly will the CBDC mean for China, how much and how will it affect their economy,

I don't think the introduction of a digital fiat currency into their system will change their economy that much. I mean they've been moving towards a cashless society for some time now thru their local apps and QR codes. I don't know how much they'll save from printing paper fiat though. Maybe a lot or maybe insignificant.

will it be accepted by some other countries close to China,

Are you referring to Taiwan and Hongkong? I doubt it. I'm certain India would reject it too.

I find it complicated for other countries to accept it. How will they convert it back to their local currency if they do? It will probably happen once these other countries have their own digital currency.

and whether it will weaken interest in Bitcoin, which has been banned from trading for years.

Not yet I guess but if all countries issues their digital currencies, they can easily ban all forms of cryptocurrency trading.

[target]

It will possitively affect thier economy when other countries will apply also their own digital currency that will be compatible with China's digital yuan. Most probably the countries that are partners to thier one belt road initiative that will be part of hte trade routes from Asia to Europe. But this is also bypassing the USD regulation which is likely not going to make Bob happy.

[slapper]

It seem that China is doing a great job in developing their digital currency. This will strongly affect their economic system which are currently based on tradtional bank and fiat.

Yet, implementing CBDC to a whole country is at a different level. It will take time and process to introduce and get use to new technology. Being able to control a country with more than 1.5 billion citizen is an astonishing job. Ironically , if they succeed in this action, many citizens in their country maybe totally under the control of their government. They can no longer act in a arbitrary way. Transfering money, especially money that are not legally earned, can be traced and tracked down by the police

CBDC is somehow good for the China becasue it makes thing easier to maintain a huge country like that. Nevertheless, bitcoin will remain as strong as it is right now. Nobody wants to sell their indentity with a cheap price. Utilizing cryptos makes government less powerful and you are independent from the local economy. Therefore, no matter how hard they try to develop CBDC, it is always as centralization as fiat is. Bitcoin and other anonymous coins still have their own place on the digital world and on the Internet

Best regard

[poshat]

May be they chop off the branch they sit on, because after control will be more difficult

[so98nn]

~ What exactly will the CBDC mean for China, how much and how will it affect their economy,

I don't think the introduction of a digital fiat currency into their system will change their economy that much. I mean they've been moving towards a cashless society for some time now thru their local apps and QR codes. I don't know how much they'll save from printing paper fiat though. Maybe a lot or maybe insignificant.

Moreover, there is always need of the paper based currency for various usage. Not whole country can accept the digital payments and also it is not the stringent rule by any means. A lot more population still prefers cash since their so called "businesses/daily wages" run on the hand-to-hand money. I mean what those people would do in such case if whole country becomes digital?

Also, government can not stop printing the money suddenly since it's not figurative as to how much to print and how much to let go?

will it be accepted by some other countries close to China,

Are you referring to Taiwan and Hongkong? I doubt it. I'm certain India would reject it too.

I find it complicated for other countries to accept it. How will they convert it back to their local currency if they do? It will probably happen once these other countries have their own digital currency.

India? No doubt about it's rejection since they are already on the verge of rejecting the whole concept of bitcoin and currencies in their country.
What I mean is, they will use the digital payment solution but they will never ever stop printing the paper money thats for sure. Firstly huge population is based out of village with no access to digital stuff and secondly lot of poor people who make their daily living through cash payments only.

and whether it will weaken interest in Bitcoin, which has been banned from trading for years.

Not yet I guess but if all countries issues their digital currencies, they can easily ban all forms of cryptocurrency trading.

This undoubtedly straight statement and government will surely ban such act which creates obstruction to their own legal system. So yeah that can happen too.

[LeGaulois]

Free money, what a good way to attract people to test your product. Same opinion here, I don't believe a CBDC will harm Bitcoin.

On one side we have Bitcoin, a stateless and decentralised currency, and on the other side we have a currency belonging to the state, with all that it imposes (laws, regulations, monetary code).

If people are interested in Bitcoin it is for its volatility, and therefore a possible high yield, and also for its decentralisation.
Something that a government currently does not bring.

So the two have different uses, we could almost say that they are different products.

will it be accepted by some other countries close to China,

Are you referring to Taiwan and Hongkong? I doubt it. I'm certain India would reject it too.

I find it complicated for other countries to accept it. How will they convert it back to their local currency if they do? It will probably happen once these other countries have their own digital currency.

It's not necessarily the countries close to China that could accept it, but for international commerce any country could be ok. There is nothing complicated, it's same as it is currently. For exemple, China buy oil from Russia but pays in USD, Russia has no problem to receive dollars.

When it's about money, people always find a way to convert it in something acceptable for their uses

Not yet I guess but if all countries issues their digital currencies, they can easily ban all forms of cryptocurrency trading.

If they really wanted to ban trading cryptocurrencies they would have done it a long time ago. And they wouldn't have created laws to regulate and tax it

[MainIbem]

China is on the move. The future is digital and they have got that at the fulcrum of their digital planning. It will impact very well in their economy because it will ease the doing of business.

There will not be a shortage of Forex. There will be speedy transaction being the speed of the blockchain conformation. Payments can be done from every corner of the earth. Certainly, this is a good move by China.

[Darkoth89]

So the CBDC they were giving away could be used just as the normal yuan and had the same value? That's something they should be doing here in the EU as well when they plan to introduce a digital Euro.

I don't think an official national digital currency, it doesn't matter if it's China or the EU or whatever, would weaken the interest in Bitcoin. Quite the contrary actually. The more people who are getting used to use digital crypto currencies the better. Because when you learn and then know how everything works with the official crypto currency, the step towards Bitcoin isn't that big anymore.

[electronicash]

So the CBDC they were giving away could be used just as the normal yuan and had the same value? That's something they should be doing here in the EU as well when they plan to introduce a digital Euro.

I don't think an official national digital currency, it doesn't matter if it's China or the EU or whatever, would weaken the interest in Bitcoin. Quite the contrary actually. The more people who are getting used to use digital crypto currencies the better. Because when you learn and then know how everything works with the official crypto currency, the step towards Bitcoin isn't that big anymore.

banks are looking into CBDC and countries are already planing for their down digital currencies. there is even a digital dollar. not going to weaken the interest in BTC because the moment people learn that government will use the CBDC to monitor their people's wealth, they will still go back to real cryptocurrency like BTC.

CBDC will help the adoption but its also a threat to freedom we current enjoy. government accessing CBDC and freezing your wallet will destroy life.

[Chrystora123]

There are around 3,000 merchants that accept digital yuan in one of Shenzhen’s districts, where the coins can be spent on goods and services.
Among them are businesses like Tencent, Huawei, and even Walmart.

source: https://www.digitalmarketnews.com/china-conducts-one-of-the-biggest-public-cbdc-tests/

in the article, I am focused on this, I just found out that 3 big companies in the world have collaborated on the Digital Yuan project.  I'm sure the US will soon be distracted by this.  especially if Trump is re-elected as president of the US, he (Trump) will mock China again..  

[tyz]

China is on the move. The future is digital and they have got that at the fulcrum of their digital planning. It will impact very well in their economy because it will ease the doing of business.

Exactly. China is on the move. On the move to direct total digital dictatorship. China has not yet overcome the hurdle from developing country to industrial nation. The question will be whether they will ever make it at all if they completely monitor their people on all levels of their daily life. Only freedom will enable economic development in the long run.

[masterzino]

I don't like CBDCs at all!

CBDCs are not like normal cryptos. They are the one and sure way to take everything from every 'non-obeying' citizen. So I'm not so thrilled about China's forced CBDC.

[hatshepsut93]

How is this CBDC any better than banks and payment companies like Visa? Instead of government asking them for you financial data, the government will just get it on their own, and this is not a good thing. And knowing China, they will be putting financial restrictions on people with low social credit score, for example. This isn't progress, it's a step towards more authocracy and tyranny. Governments are taking more and more role in economy, and regular people are not benefiting from it.

[masterzino]

How is this CBDC any better than banks and payment companies like Visa? Instead of government asking them for you financial data, the government will just get it on their own, and this is not a good thing. And knowing China, they will be putting financial restrictions on people with low social credit score, for example. This isn't progress, it's a step towards more authocracy and tyranny. Governments are taking more and more role in economy, and regular people are not benefiting from it.

It's not.

But it's giving the governments a total control over all aspects and funds of their citizens. It's worst than '1984'.

I totally agree with you that this is a step towards more autocracy and tyranny.

[iamsheikhadil]

I see China as a global competitors to the US Monopoly. No wonder they have influence over most things in the world, including WHO that defends China on the Corona Virus issue.

Without Chinese products, we are nothing. It's everywhere. Influences everything. It is indeed an emerging super power worthy of envy.

I think the digital currency won't have any direct impact on economy or crypto in general because crypto is now too mainstream to get impacted by any particular government's decisions because even when Trump tweeted against Bitcoin, Bitcoin survived.

But in general, China going cashless is surely going to change how we look at digital economy in global terms.

[Darker45]

~ What exactly will the CBDC mean for China, how much and how will it affect their economy,

I don't think the introduction of a digital fiat currency into their system will change their economy that much. I mean they've been moving towards a cashless society for some time now thru their local apps and QR codes. I don't know how much they'll save from printing paper fiat though. Maybe a lot or maybe insignificant.

I think it is not as much for the local economy as it is for the streamlining of the yuan in the global fiat race. It may appear as if it's just a simple shift of form. However, along with it are infrastructures that would certainly give it an edge over other global currencies.

The yuan has been strongly pushed by the Chinese government to try to replace the USD in international trade. A digital yuan might significantly help this agendum, so much so that western economists are issuing warning statements that the US should also develop its own or risk being left behind. Neighboring Japan, on the other hand, is somehow fearing that the emergence of a digital yuan would significantly change the international playing field in favor of a more aggressive yuan.

The process of dedollarisation is happening. China is obviously leading this and issuing a CBDC is certainly part of this grand scheme.  

will it be accepted by some other countries close to China,

Are you referring to Taiwan and Hongkong? I doubt it. I'm certain India would reject it too.

I find it complicated for other countries to accept it. How will they convert it back to their local currency if they do? It will probably happen once these other countries have their own digital currency.

Hong Kong will have no choice at all. Taiwan would certainly resist and India would probably never embrace it. However, the rest of the poorer countries will have no choice as China is probably their top trade partner and loan provider. I would even assume as far as saying that if China would pull out from their economies, they might somehow collapse. So they would no doubt very easily comply with the hand that feeds them.

Acceptance of the digital yuan by other countries is very easy as China would be very happy to provide all things necessary.

[Lorence.xD]

How is this CBDC any better than banks and payment companies like Visa? Instead of government asking them for you financial data, the government will just get it on their own, and this is not a good thing. And knowing China, they will be putting financial restrictions on people with low social credit score, for example. This isn't progress, it's a step towards more authocracy and tyranny. Governments are taking more and more role in economy, and regular people are not benefiting from it.

I think that this is just a test and Shenzen is a special case because it is a special economic zone. I do condone China's policies but I think this is a step forward towards a cashless society. In my opinion, this is a twisted kind of progress but still a progress. The last line is not true for me, if the only actors in the economy is the government then the companies will not be profiting that much because they only have one demand which is counter productive in their part.

[Lucius]

Are you referring to Taiwan and Hongkong? I doubt it. I'm certain India would reject it too.

No, I meant first of all those who cooperate with China, like Russia or Iran, and they are all under more or less Western sanctions and have to turn to each other if they want to survive in this world. For India, I'm sure they won't accept anything like that - because they are influenced by the USA and have an almost identical attitude towards China.

For exemple, China buy oil from Russia but pays in USD, Russia has no problem to receive dollars.

As far as I know, last year Russia's largest oil company (Rosneft) was switch from USD to EUR, followed by other large Russian companies such as Novatek. China and Russia have also signed a $270 billion oil purchase/sale agreement for 25 years, and China has done the same deal with Iran.

Russia's largest oil company Rosneft ROSN.MM has fully switched the currency of its contracts to euros from U.S. dollars in a move to shield its transactions from U.S. sanctions, its Chief Executive Igor Sechin said on Thursday.

Russian oil giant Rosneft and Chinese state firm CNPC on Friday signed a $270 billion deal to supply China with oil over 25 years, an agreement hailed by Russian President Vladimir Putin as "unprecedented."

[blockman]

will it be accepted by some other countries close to China

I don't think that any country would be happy to accept their CBDC. China alone is a huge country to use this as a new type of money. As we know, many countries don't really like them and there are a lot of shadowing through international media about them. With shadowing, I mean those news about them being portrated as a bad country and while praising their economy to be going up, it just so happened because the world is in crisis.