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How China’s Digital Yuan is Different From Bitcoin – SCMP

CBDCs such as China’s digital yuan (e-CNY) are centralised by design and don’t need a decentralised ledger, such as in the case of bitcoin


Officials in Shenzhen in China's southern Guangdong province are giving out millions in cash via the digital yuan to stimulate its pandemic-hit economy.
China's official app for its digital yuan CBDC is seen on a mobile phone next to 100-yuan banknotes. Photo: Reuters.

 

Blockchain architecture has been used for cross-border financing and settlements, but cryptocurrencies such as bitcoin and central bank digital currencies (CBDCs) have very little in common, the South China Morning Post reported.

CBDCs such as China’s digital yuan (e-CNY) are centralised by design and don’t need a decentralised ledger, such as in the case of bitcoin, the report said. The underlying system running e-CNY can be summed up as  ‘one coin, two databases, three centres’, the report added.

Read the full report: South China Morning Post

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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