The Chinese Cryptocurrency eYuan: What It Is And What We Know About It
✍️ 3 September, 2022 - 8:10 👤 Editor: Jakub Motyka
- China, cryptocurrencie, and Bitcoin (BTC) in the same sentence: the Chinese cryptocurrency has been a reality for a short time, specifically since all activities related to cryptos were declared illegal in the country.
- eYuan (e-CNY) is the official Chinese cryptocurrency distributed by the central bank of China.
- Find out what it is, how it works, if it can be bought and much more about Chinese crypto.
eYuan (e-CNY), digital yuan or, simply, the Chinese cryptocurrency: there are many names under which it is known the official project of the People's Bank of China (PBoC), the central bank of China, within the world of cryptocurrencies. Buying Bitcoin (BTC), Ethereum (ETH) or any other altcoin has been banned in China for years, but there is an alternative official for those who want to operate with digital currencies.
This is the Chinese cryptocurrency eYuan, which is something like the official digital currency of the Asian country. Far from being related to the essence of blockchain technology, it is actually a state cryptocurrency that is nothing more than fiat money digitized in the form of an electronic currency .
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To understand it better, the e Yuan or e-Yuan is something like if tomorrow Europe decided to put into circulation a one hundred percent digital version of the euro . It would not be a common cryptocurrency, but rather a digital currency that would simply replicate the functioning of fiat money in digital format. The same happens with the Chinese cryptocurrency in question, which is issued by the Central Bank of China.
¥ How The Chinese Cryptocurrency eYuan Works
As we said, in China the eYuan cryptocurrency is nothing more than a digitized version of the physical yuan. It works the same as yuan bills and coins, only it is in digital format, so it can be used to pay from your mobile without having to carry cash on top.
Although it is not based on blockchain technology, and has nothing to do with the decentralized philosophy of Bitcoin (BTC), China's cryptocurrency can be stored in digital wallets and is used together with a QR code that allows money to be moved from one wallet to another.
The eYuan, e-CNY or e-RMB can only be issued by the People's Bank of China (PBoC), which distributes digital yuan to banking entities in the country, who are in turn obliged to deposit reserves equivalent to the value of digital yuan they offer to their customers. This cryptocurrency really belongs to the category of CBDC (Central Bank Digital Currencies), that is, digital currencies issued by a central bank.
According to the latest data published by the magazine Fortune, the e-Yuan is already being used by approximately 18% of the Chinese population (equivalent to some 260 million users), having reached a volume of nearly 8 billion dollars in transactions in the last six months of last year.
🇨🇳 Differences Between The Chinese Cryptocurrency (eYuan) And Bitcoin (BTC)
Whether compared to Bitcoin (BTC) or any other altcoin, the truth is that there is a world of differences between the Chinese cryptocurrency eYuan and the rest of the cryptos . To begin with, the eYuan is not a common cryptocurrency, but rather the digital version of the official currency of the Asian country.
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As such, the queen of Chinese cryptocurrencies, the digital yuan, is not decentralized, it is not anonymous, and it is totally controlled by an official authority. Therefore, it goes completely against the philosophy of Bitcoin (BTC), which precisely emerged as an alternative to the legal circle that existed until then in terms of money.
💵 So, Can I Buy The Chinese Cryptocurrency eYuan Outside Of The Country?
The reality is that Chinese cryptocurrency cannot be purchased outside of China. The eYuan is not even available as a financial investment within its borders, since it is a digitized version of a legal tender currency and, therefore, investing in the Chinese crypto would be equivalent to investing directly in yuan (through futures, for example).
Therefore, you cannot buy eYuans from the United States, or from any other country in the world other than China. Investing in this cryptocurrency is, in short, totally ruled out.
🌎 Beyond China: Countries That Also Want To Have Their Own Official Cryptocurrency
China is not the only country that has shown interest in having its own official cryptocurrency. Colombia, through the Petro Government, is already working on a digital currency proposal that will be aimed at combating tax evasion; The Bahamas or Nigeria, on the other hand, are examples of countries that have already implemented their own official cryptocurrency issued by their respective central banks.
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- china-criptomoneda-yuan-digital: Unsplash