With many countries pondering over their own digital currencies, China stays ahead on this journey. According to China's state-run news agency, President Xin Jinping has said that blockchain plays a huge part when it comes to technological innovation and industrial transformation.
With the launch of the e-Yuan, bitcoin will have a new competitor in the world of cryptocurrency. However, it is not confirmed if China plans to include the e-Yuan cryptocurrency in its financial system. International experts have debated that this cryptocurrency will never be as effective and vital after all.
The Chinese have had long due debt problems, and e-Yuan is a hope to solve this issue. At the moment, China has a debt of 2.4 trillion yuan ($341 billion) because of the illegal culture of taking multiple loans, each time with the pledge to return.
The currency will be monitored and managed by the state and authorized brokers will be allowed to sell the cryptocurrency during the initial days.
We have no news on whether the currency will be supported by any physical assets or not. But China has previously supported its currency Yuan with gold and in case e-Yuan needs it, we can expect the government to stabilize it with physical assets.
e-Yuan has sparked Chinese technology stocks as they reach an all-time high with people spending almost $26.99 Billion on them. This is great news for both the currency and Chinese stock investors.
The pandemic has led to many investors with not many high-potential stocks and this could be a great opportunity for many. E-Yuan may not serve to be huge for many of China's problems. But for many middle-class individuals, it appears to be a good opportunity or investment and climbing the financial ladder through it.