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The digital yuan will provide a function of limited anonymous transactions

Oct 19, 2020 | News
The digital yuan will provide a function of limited anonymous transactions

According to the latest DCEP report, the development of digital yuan is in full swing. Now, for example, it is actively testing the function of limited anonymous transactions, and other features are planned in the near future. So the authorities in Shenzhen, the city where the system is being tested, are pleased with the results.

Restricted anonymous transactions are those that do not display information about the seller. But you can still see the type and amount of the payment.

The system already provides for the possibility of offline payment - that means, a situation in which the buyer does not need access to the network to make a purchase. Due to the fact that the payment application generates a special QR code, the merchant can read it and make a transfer. But it is also planned to introduce "double offline payment", when direct contact between two phones in real-time is enough to make a payment.

It is assumed that it is the "double offline" that will finally allow the use of the new digital yuan as a replacement for the regular currency. Especially for small daily purchases and payments. This will be facilitated by the fact that the commission for such transactions will be much lower than that of traditional payment systems. And even lower than in electronic payments like Alipay and WeChat.

At the current moment, the digital yuan is a pilot project of the Luohu Digital RMB Red Packet company, being tested in the Shenzhen city, but it can be introduced in other territories. Moreover, some functions can be fine-tuned and used only if the number of users is significantly increased. At the same time, it is not at all planned to completely abandon ordinary paper money - they will continue to be used along with the new currency.

There is no longer any doubt that the Chinese project will be launched and implemented. Too much effort and money have been invested in it. Yes, and there are many benefits from it, with a competent organization of the process. But whether this is enough to really shake the dollar's dominance in the cryptocurrency space is a very big question. Especially when you consider that the digital dollar is also being actively tested with the help of federal banks and research centers. So - we will follow the development of events.

Published on the EXBASE based on materials from news.8btc.com