Comparison done between Digital Dollar and Digital Yuan in China

Comparison done between Digital Dollar and Digital Yuan in China

On May 13, on China’s progress in the Central Bank Digital Currency, Algorand was uploaded on a webinar.

Including Algorand Foudation CEO Sean Lee, Tezos’s David Shin and Charles d’Haussy from ConsenSys, the event was hosted by China’s Blockchain-based Service Network.

Focusing on the marketing and incentivization that has leading to pilots being run with banks, businesses and tech companies all over the region, all the panelists spoke positively about the approach China had taken with CBDCs.

The panelists also contrasted the public style of the digital yuan development with that of the US, while discussing the challenges of rolling out a CBDC. The Biden administration has been briefed on the progress of other nations in this space, and hinted that the US might not be as passive as they might seem, though despite lack of public trust as suggested by Shin.

Allowing the US more flexibility and patience in how they deploy new technologies, as there is less pressure to make the first move, the US dollar holds a strong position over other national currencies. Also, by increasing the utilization of the yuan in international scenarios, China has a lot more to gain.

Alipay is also allowing users to get involved with the CBDC tests according to Cointelegraph. The financial services app has been playing an early role in testing, but this is one of the first indications that retail users might soon be able to get their hands on the digital yuan directly via the app. On May 13, Cointelegraph also reported on Hong Kong Monetary Authority giving the green light to continue testing on using the digital yuan for cross-border payments.

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