The digital yuan can be used without a bank account by foreigners

The digital yuan can be used without a bank account by foreigners. For the first time, the Central Bank of China published the white paper of the draft national digital currency in English, which contains its technical characteristics

Foreign tourists will be able to use digital currency without opening accounts with Chinese banks. This is stated in the white paper of the National Digital Currency Project (CBDC), which was first published by the People’s Bank of China.

Back in October 2020, Sun Guofeng, head of the monetary policy department of the People’s Bank of China, announced that the digital yuan would be used in Beijing during the 2022 Winter Olympics.

According to the document, the digital currency will receive support for smart contracts, which will allow payments to be made in accordance with predetermined conditions or agreements agreed between the two parties. The timing of the digital yuan project is still unknown.

A smart contract is an algorithm that is used in the blockchain to form, control, and provide information about the ownership of something.

The document describes the history of the creation of the digital yuan since 2014, which is contrasted with China’s response to the risks and challenges posed by decentralized cryptocurrencies.

“Cryptocurrencies are mainly speculative instruments and therefore pose a potential threat to financial security and social stability,” – the Central Bank of China said.

In mid-June, Beijing residents were able to convert the digital yuan into cash. The Industrial and Commercial Bank of China (ICBC) has allowed CBDCs to be cashed at more than 3,000 ATM machines in the Chinese capital. Prior to that, the owners of the digital yuan could only use it in retail outlets that participate in the currency testing project.

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