We are living in a digital age and it’s no wonder we can’t avoid being surrounded by a wide array of different apps and gadgets. Surely, all of these have a massive impact on how we perceive the world of today. Just think about how it may look in the future. Surely, it is something that would be a much different way of life than our ancestors had.
One of the biggest changes in the last couple of years was the emergence of cryptocurrencies. The story begins back in 2009 when the world was introduced to Bitcoin, which is now known as the first and the most valuable one. Over the years, we can see that numerous other cryptos have entered the stage. The most important of all of them is certainly Ethereum.
One of the most important things in the world of cryptos is that there are many stories about how countries will have their cryptos. Among others, we could see that South Korea, Russia, and China were named. We can see that China is the first of all of them to launch its crypto. It is called Yuan Pay. Let us take a look at a couple of things that we know about it so far.
1. It is Not Decentralized
If you know anything about Bitcoin and Ethereum, you surely know that these are known as decentralized cryptos, supported by the blockchain system, and their users can remain completely anonymous. What’s interesting to know is that Yuan Pay has all of the most important elements of proper crypto. However, it needs to be said that it is not decentralized. Does that mean that it is not crypto? No, it doesn’t. It is, in fact, a cryptocurrency.
The reason why it is not decentralized is the fact that it has close ties with the Chinese national bank. From what we’ve been able to understand from some of the credible articles that talked about Yuan Pay, we can see that this connection is a solid one. But, the first conclusion we could make is that it is not a decentralized one.
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2. It Can Challenge Bitcoin and Dollar
Surely, we can see that people in China are no strangers to many sorts of digital payments. If you take a look at some of the studies, you will see just how much the Chinese people are using this kind of making payments. Now that we know that it is not decentralized crypto and that it has a strong connection with an official institution, in this case, the national bank of China. So, it has a serious advantage over other cryptos, and why not, even some fiat currencies.
When we say that, we can see that Yuan Pay has a significant potential that can even challenge the king of all cryptos, Bitcoin, and the unofficial world’s fiat currency, the US dollar. The reason why it has this amount of potential is that Yuan Pay represents a symbiosis between two major factors, the official institution, and the blockchain system. While it is still quite early to talk about this potential in the highest detail, it needs to be said that it is certainly a possibility to expect that in the future.
3. Traders Will Not be Anonymous
Different from any other digital currency we can see on the market, Yuan Pay is not a decentralized currency. Therefore, it means that the traders will not be able to remain anonymous. When you take a look at it, it makes perfect sense. The reason is that we are talking about a national digital currency. Every country in the world needs to have complete financial control. We can see that this question raised a lot of different uncertainties among the crypto community.
If you understand that, you will not be too surprised by the fact that commercial banks will be obligated to create daily reports of the transactions that have been made. Besides that, the process will remain pretty much the same. The owners will still need an e-wallet and will make the purchases on a credible site that offer all other digital currencies like Bitcoin, Ethereum, Litecoin, etc. When you know all of these aspects, you can be sure that the traders will not be able to remain anonymous.
4. It Has Enormous Potential
We can see that Yuan Pay is still new to the market and that there are still many uncertainties about it. However, there one thing that is for certain. It has enormous potential. We’ve mentioned the fact that it can challenge Bitcoin and the US dollar. But, let’s take a look at it from the other perspective. For example, if China decides not to export it to other countries, the value of this digital currency will not be the harm in the future. The reason is that China’s population has more than a billion people.
That alone should represent a solid reason why its value should reach high figures. In the last couple of days, we could see that many companies, both small and large, in the country have decided to adopt it as a legit method of payment. If you know how significant the adoption is for any digital currency, you can see how big of an impact it will have on Yuan Pay. Whatever happens, one thing is for certain. We are looking at a massive potential, and there’s no reason why it shouldn’t fulfill in the future.
The new player has entered the cryptocurrency market. It comes from China and is the first of many national digital currencies that will follow in the future. How big of an impact it will have on the market remains to be seen. One thing is for certain, it will be significant. Here, you can take a look at some of the things we know about Yuan Pay for now. Sure, we will learn much more about it in the future. It is still new, and we need to be patient.