What is the difference between a national currency and a digital currency?
Did you know China has already been testing its sovereign digital currency, the e-yuan?
I tried to understand the REAL difference between a digital currency and the currency we all know. Turns out, digital currency is supported and backed by the central bank, can be transacted in all known mediums currently available and is pretty similar to the existing currency we have today.
“China began exploring the concept of a sovereign digital currency in 2014 following the success of e-commerce platforms Alibaba, Tencent and Baidu. China has already distributed some 200 million yuan (US$30.7 million) in digital currency as part of pilot projects across the country.”
I get that the currency we all are used to and familiar with is basically cash we have with us, in our wallets, in the bank and widely adopted. But a digital currency can do all that and more.
Mobile transactions accounts for 4 out of 5 transactions in China and increasingly, adoption is no longer a problem. People in China, young and old, are more familiar with digital currency and mobile transactions than anywhere else on the planet. It has bridged communities and transcended borders, climbed mountains and crossed rivers, reaching deep into rural villages and the top of skyscrapers.
I am excited to see where this technology heads in the near future and will be ready to embrace its might.
Which other country will start its own digital currency next?
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