On Friday of last week, China launched its domestic digital yuan at the 2022 Beijing Winter Olympics, in an effort to demonstrate its worldwide competence.
However, it appears that some residents, international visitors, and government officials are unimpressed with the digital token.
At the Winter Olympic venues, the digital CNY (e-CNY) was not widely used, and other popular e-payment platforms such as Alipay dominated.
Another attendee, whose name was concealed by Beijing Business Today, stated that “foreigners” preferred to use Visa cards.
Despite these unfavorable perceptions, China has already pushed for every wallet to be ready for the games, including NFC-enabled smart cards, RMB-themed promotions, and other digital payment choices.
The Digital Yuan’s Challenges and Threats
While the government is adamant about this plan, the People’s Bank of China is wary about enforcing virtual currency completely. Because cryptocurrencies are illegal in the country due to financial instability and corruption, the central bank is in charge of digital currency.
Another difficulty with the e-CNY is the question of privacy. According to Eswar Prasad, an economics professor at Cornell University, the level of security and safety nets provided by digital wallets varies depending on the model.
Customers and regulatory features abound in high-end digital wallets that let users to store significant amounts of money. Low-grade digital wallets, on the other hand, require merely a mobile number and only provide transactional anonymity.
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