India is currently encouraging the cashless economy as a result of the demonetization move is happening in the country. Not only in India, neighbor country China, also initiated testing on their digital currency which can replace the paper currency in the coming years.
China’s latest digital currency is termed as ‘ChinaCoin’ by few experts. This works similar to Bitcoins (cryptocurrency and a payment system) which is processed with cryptographic techniques.
China has made an announcement in the starting of this year regarding digital money. This was made by the People’s Bank of China, which is the central bank of China and powerful bank in the country. As per the release of the official announcement, this move is triggered for cur money laundering and eradicate the outflow of the currency to the foreign locations and stopping the tax evasion.
Introducing the digital currency will impose more transparency in the business and commerce sectors. It also helps in providing the ease of usage by all the citizens in the country.
In a similar way, things are observed in India. Recently the announcement by India’s Prime Minister Shri. Narendra Modi about the ban on Rs 500, Rs 1000 currency notes for the improvement in the economy sector in the country. This is the major and rapid action taken in India towards the development.
Yao Qian, Official person with Digital Currency Research Center in Bank of China, says “China will first introduce the currency in certain money markets and promote its use in a gradual and cautious way.”
China is more cautious about their approach on the digital currency, and the testing of this module has already started. To avoid the mal-practices and for ensuring a smooth transition to Digital Currency, the Chinese government will come up with this new digital currency in a phased manner.
Bitcoin is the most popular digital currency, and this is not associated with any bank or government. This allows the users to spend the money anonymously.
Unlike the Bitcoin, The digital currency in China will be issued by Central Bank, and it will authorize legally by the government. This is going to be alternative for the paper money in the country.