The crypto regulation news now in the field of central bank digital currencies (CBDCs) show that the digital currency aspirations for China are now bigger. In fact, reports show that China will track all transactions above $14,000 made with the digital yuan.
Recently, we shared reports showing that China’s progress in terms of blockchain and digital currency developments is unparalleled. However, the advancement of disruptive technology is not the motive of China to spearhead digital currency development if all the recent developments are considered.
Nikkei Asia reported that China will track all transactions above $14,000 by leveraging blockchain to gain a greater foothold over its citizens’ transaction and financial activities – an ideology which is completed contrary to the one of Bitcoin.
In the blockchain news, we can also see reports from Nikkei Asia showing that the country will track all “large” transactions over 100,000 RMB (or $14,000 at press time) to curb capital flight and closely monitor any potential fraud.
Starting from July, China will track and record serial numbers – starting with the banks in China’s Hubei province. The country will also report gross figures to the People’s Bank of China (PBoC).
Eventually, we could see a digital yuan being deployed to provide real-time insights and transaction Chinese regulators. The ultimate motive is to stamp out currency fraud in the country. Even though there is no exact date for this launch, reports show that the President Xi Jinping is pushing the launch of the Digital Yuan before the 2022 Winter Olympics set to be held in Beijing.
Now, observers believe that the event will be fully digital and the digital yuan is playing a significant role in terms of financials. The digital yuan limits are different everywhere – Shenzhen citizens will get a 200,000 yuan ($28,000) threshold while the Zhejiang province will get a 500,000 yuan threshold.
The ongoing US-China trade remains to be another significant factor in the news and one that has affected the stock markets in both nations, and in many cases their fiat as well.
“China’s foreign reserves exceed $3 trillion, the figure is less when accounting for the surge in dollar-denominated debt, as well as for U.S. government bonds that can be cashed out quickly,” Nikkei noted.
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