Chinese stocks linked to the digital currency posted gains on Monday despite weak general market sentiment as China puts pressure on the digital yuan.
This news can be attributed to the recent actions taken by China with the aim of promoting the electronic yuan. The use of the central bank’s digital currency, the digital yuan, has become official in other regions.
The Chinese digital yuan continues to be paid
Shares of Global Infotech, Chutian Dragon, Newland Digital Technology and Northking Information Technology were traded at the time of publication.
Despite the positive market sentiment, the bookmark by 0.3%. Meanwhile, there are some larger macroeconomic concerns. Includes the pace of China’s economic recovery and the potential revenge By G-7 Nations. This comes as India’s attractiveness grows as a business destination in Asia.
However, the surge in cryptocurrency-related stocks is largely due to Changshu’s digital payments announcement. Starting in May, the city will pay government sector employees in digital yuan.
This development is significant, given that Changshu has a population of around 1.5 million people. This move is expected to increase the use of digital money. In addition, the South China Morning Post notes It will affect those who work in public institutions, including teachers, medical professionals and others working in state-owned enterprises.
Senior financial expert Wang Bingbo told the newspaper that using e-CNY to pay salaries would help the virtual currency gain popularity. According to the SCMP report, some government sector employees in other regions have been receiving e-CNY as salary since last year. According to the report, some district public school employees have been receiving transportation benefits since October.
Dan Wang, chief economist at Hang Seng Bank in China, told the media, “This development marks China’s latest experiment in promoting the electronic CNY.”
How would this affect the US dollar?
China has been trying to market its digital currency for a few years now. Local governments promoted it, and some even started small-scale experiments to use it to pay government subsidies. According to reports, nearly 4,900 state enterprise employees have received overtime payments digitally, totaling 2.5 million yuan ($363,000) since June last year.
In addition, some experts believe that the decline of the dollar as the world’s reserve currency could accelerate with the rise of the digital yuan. China has been the fastest adopter of its digital currency as other countries have pushed for their centrally backed alternatives.
Kobeissi’s message confirms that China uses the electronic yuan in Trade with Russia On a global level, especially in light of the recent unprecedented turmoil in the financial industry that has weakened the US dollar. Unrest led by the closure of the Silicon Valley Bank in the United States
With the use of the electronic yuan, electronic payment systems will not have access to information about transactions. Beijing apparently points to pressure on the digital yuan to protect people’s privacy.
Widely used Chinese software WeChat Pay recently integrated the digital yuan application for faster payments.
Since the Winter Olympics controversy, China has been unable to do anything to advance its international use. Meanwhile, China maintains global firewalls for local businesses. The restrictions prevent companies and individuals from using the yuan outside of China.
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