Given how cryptocurrencies have become mainstream over the past few years, it has seen that seven-in-ten countries have come up with their own virtual money. China is the latest largest economy to get into the cryptocurrency game. China’s state-run news network, Xinhua, quoted President Xi Jinping stating how crucial Blockchain is in the next phase of the nation’s technological innovation and industrial transformation.
The official cryptocurrency of China is the e-Yuan, and its growth has seen it gain massive traction across the world. Investors are looking to get ahead of the curve and acquire this new currency in the hopes that it will boom to the heights attained by Bitcoin. With regard to how much the cryptocurrency will be encapsulated in China’s financial system, much is still not known yet. E-Yuan criticizers claim that the currency won’t be entirely decentralized given how it will be controlled by the state. Find out how to make money with cryptocurrency.
One particular issue that the cryptocurrency may solve is the high level of Chinese bad debt. Currently, China has bad debts worth ￥2.4 trillion ($341 billion) that has accrued from the unlawful practice of guaranteeing various loans using the same capital. J. Rothers, a chief blockchain researcher, is certain that the e-Yuan can act as a viable solution for the Chinese government. The e-Yuan will track liabilities and assets, ascertaining that the same security isn’t used to guaranteeing other loans.
The Chinese government will manage how the currency will be distributed and only approved brokers and vetted banks will have the mandate to sell the e-Yuan. As of yet, it’s still uncertain whether any physical assets will be used as a backup to the currency. But China’s procurement of large amounts of gold to bolster its currency is enough proof that the state will give its support to stabilize the e-Yuan price should it begin to plunge. This presumption is enough to entice investors to buy the cryptocurrency.
After the e-Yuan cryptocurrency was unveiled, foreign investors invested over $26.99 Billion on Chinese tech stocks, which saw the Shenzhen stock exchange rise to unprecedented heights. This is excellent news for the e-Yuan and investors investing in Chinese technology stock. However, the pandemic saw the stock market crash, which has seen investors search for stocks with potential. Most people are convinced that the unveiling of the e-Yuan offers them a once-in-a-lifetime opportunity for making money.
The e-Yuan won’t completely solve China’s long-term bad debt problems. But it will enable middle-class investors to rise the financial ladder quickly via a secure investment plan. If the e-Yuan is anything identical to Bitcoin ($0.003 to $10,000 in ten years), you stand to gain considerable opportunities from the new cryptocurrency.