As of the beginning of the 2020’s a quarter of nations are reputedly developing their own digital currencies, with China taking the lead on the trending phenomenon. Xinhua News Agency, the official state-run press, released President Xi Jinping’s comments on blockchain and its ”important role in the next round of technological innovation and industrial transformation.”
Currently the launch of Yuan E-Pay has sparked global interest from investors who are anticipating Yuan E-Pay value to surpass the price of Bitcoin. Regardless of the public endorsement by the CCP, their stand on integrating cryptocurrency to China’s financial system is yet to be unraveled, as some analysts argue crypto’s impotence of being decentralized in the region. The lingering debt issue in China has created a fruitful soil for Yuan E-Pay to plant seeds of their Yuan E-Pay in the volatile loan market as China is battling with a 2.4 trillion Yuan ($341 billion) of officially recognized bad debt. “Using smart contracts provided by Yuan E-Pay, the government of China will be able to track assets, liabilities and to ensure that multiple loans are not taken over the same collateral”, says a senior blockchain researcher M.P. Sundin. It is clear that Yuan E-Pay is steering away from decentralization and implementing a strategy of working with the state, as the circulation of the coins will be modified by the PRC, which allows only authorized brokers and banks to hold the capacity of selling Yuan E-Pay. Currently the evolving trade conflict with the US emposes China to take severe actions to secure the stability of Yuan that has been for months in its lowest price on the time span of a decade. For the past 18 months China has bulked on gold to guarantee the value of Yuan, which could indicate their readiness for an escalation to a trade war. Based on a general consensus of PCR, Yuan is still prone to a crippling inflation in the following years pushing the chinese economy to alternate their funds into a stable and transparent currency to revive its financial institution. Regardless of the weakened Yuan, China has posted strong economic data with a 4.9% expansion in third-quarter GDP, falling short of the 5.5% estimate analysts had predicted. However, overall data proved a boost to the stock market, with foreign investors injecting over $26.9 billion in tech companies listed in Shenzen stock exchange. Which indicates a great return for both Yuan E-Pay and Chinese technology stock investors. The current pandemic crisis has impacted the global economy and specifically the workforce and has left many to search new avenues of investment and income. Yuan E-Pay has enabled investing in cryptocurrency from being ”tech-enthusiast’s” playground to an accessible, easy and reliable investment for middle-class individuals to move up the financial scale through a secure investment strategy. Bitcoin’s price rose from $0.003 in April 2010 to almost $10,000 in March 2020 and changed many early investors to multimillionaires, will Yuan E-Pay match up?