Cryptocurrency

China to distribute digital yuan worth $ 1.5 billion as part of testing

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China’s GDP Data Shows How It Is Winning The Covid-19 War Amid Global Recession | Economy Explained Description video: From being the first country where the Covid-19 virus was detected, China is all set to become the only major economy […]

China’s GDP Data Shows How It Is Winning The Covid-19 War Amid Global Recession | Economy Explained

Description video:
From being the first country where the Covid-19 virus was detected, China is all set to become the only major economy in the world that will grow in 2020. China’s gross domestic product (GDP) expanded 4.9% in the July-September quarter, according to statistics released by the country’s National Bureau of Statistics. Given its position as the world’s second largest economy, China’s V-shaped recovery has generated hopes of a rare growth cushion across the globe.\n\nChina’s economic turnaround after the pandemic’s impact has followed a V-shaped recovery pattern. Its GDP contracted by 5.3% in the January-March quarter, grew 3.2% in April-June, and further improved in July-September. While the September quarter figure is lower than the 5.2% estimated by a Reuters poll of analysts, China is all set to become the only major country to escape a GDP contraction this year, Eswar Prasad, an economist from Cornell University, told the Financial Times. The International Monetary Fund (IMF) has predicted that China’s GDP will grow 1.9% this year in its World Economic Outlook released earlier this month.\n\nChina’s GDP turnaround has been “stoked by a state-backed industrial boom,” the Financial Times said. Industrial production grew 6.9% in the September quarter, it reported. A look at the Purchasing Managers’ Index (PMI) number for China shows that the Covid-19 pandemic might actually have given a boost to industry. PMI manufacturing was lower than 50 from May 2019 to October 2019 , 50.2 in November and December 2019 and 50 in January 2020 before it collapsed to 35.7 in February. A PMI value above 50 signifies expansion in economic activity. The post-February numbers are actually better than what they were last year.\n\n#ChinaGDP #EconomicRecovery #COVID19\n\nSubscribe to Swarajya on YouTube.\n\nGet a Swarajya subscription: https://subscriptions.swarajyamag.com/join-us\n\nWebsite: https://swarajyamag.com/\nTwitter: https://twitter.com/SwarajyaMag\nFacebook: https://www.facebook.com/swarajyamag

China to distribute digital yuan worth $ 1.5 billion as part of testing

China kicks off one of the biggest real-world tests of its digital currency, moving closer to creating a cashless future.

Last week, the Shenzhen government held a digital currency lottery totaling 10 million yuan (about $ 1.5 million). Almost 2 million people submitted applications, and 50 thousand participants of the drawing won.

Winners can now download the app to receive the digital yuan and spend it with over 3,000 merchants in a designated area of ​​Shenzhen. The South China Technology Center is home to some of the country’s largest tech giants, including Huawei and Tencent..

China to distribute digital yuan worth $ 1.5 billion as part of testing

The participating sellers include Walmart, as well as local supermarkets and pharmacies, according to the Shenzhen government’s WeChat app..

The digital yuan is not a bitcoin-like cryptocurrency. It is issued and controlled by the People’s Bank of China, the country’s central bank. The digital yuan does not intend to replace digital wallets like Alipay or WeChat Pay. Most likely, he will work with them and other banks.

Unlike the digital yuan, bitcoin is decentralized, which means that it is not owned by any individual or controlled by central banks..

China’s digital yuan has been under development for the past few years, with only a few small trials conducted across the country. Pilot project from Shenzhen seems to be the largest of the tests so far.

Central banks around the world are exploring the idea of ​​issuing digital currencies. Last week, the Bank for International Settlements and the world’s seven central banks released a concept for central bank digital currencies dubbed CBDC.