China and France test digital currencies.
Hello dear readers!
Blockchain is gaining strength as the great alternative to the global fiduciary system, more and more governments are embarking on the adventure of the possible future, trying to take the first steps towards a blockchain-based economy and get rid of the cumbersome traditional fiduciary system.
The European Central Bank also once said it is willing to issue its own digital currency if the private sector fails to make cross-border payments faster and cheaper.
China first tested its cryptocurrency.
In recent days it was known that China carried out the first tests on its Digital currency, the Chinese people's bank is making efforts so that the currency can enter into circulation soon, it can be seen through screenshots that the application through the which one will work the blockchain based system is now ready to use.
The project is known as DCEP for Digital Currency, Electronic Payment; Although this is not a recent idea, since China has been working on it for approximately two years, nevertheless, it seems that the pandemic is accelerating the times for the presentation of this digital asset.
Four Chinese banks appear to be testing the digital currency, which will have a peer relationship with the Yuan.
An important aspect of the Chinese project is that it is very focused on the utility of the currency, which will be part of a payment system. Users will have a virtual wallet on their mobile devices through which they can make payments by QR code, send or receive money.
France conducted Euro Digital tests.
In the same vein, the French central bank recently conducted successful tests with the Euro Digital, a blockchain-based currency. In an announcement Wednesday, the Bank of France said it carried out the experiment with investment banking giant Société Générale, which issued bonds as security tokens and then settled them in digital euros.
"This experiment was carried out end-to-end using blockchain infrastructure. This demonstrates the feasibility of financial securities being digitally settled and delivered in Central Bank Digital Currency (CBDC) for interbank settlements."
The Societé Générale
"Specifically, to start this project, the Bank of France just successfully tested on May 14 the use of a blockchain developed by its teams to experiment with the use of a digital currency from the central bank in order to solve an issue of digital financial securities by Société Générale Forge. "
Conclusions.
The attributes of blockchain have undoubtedly aroused the interest of governments and global financial systems, despite the fact that there are many detractors of this technology, governments are advancing blockchain-based projects.
What remains to be seen are the results, a bad example of all this is the Venezuelan experience with the petro, since I have known about blockchain, heard that the value of the cryptocurrency is based on trust, the Venezuelan Petro seems to have never enjoyed from people's trust, apparently nobody buys it.
What will happen to these government-driven currencies, will they succeed, break down the barriers of mistrust generated by centralization?
These and other questions are what these projects face, however, governments are determined to bet on the success of this technology.
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This development might also be a method by Banque de France to deal with the upcoming Libra Facebook.
Previously, Thierry Henry's home country was a counter party to Facebook Libra and would not support the project. Just like the tweet referred to above, the French Minister of Economy and Finance, Bruno Le Maire, previously called for the development of national digital currencies so that France would not be left behind by other countries such as China, which made significant strides in developing and issuing their digital currencies.
Hello friend @block.token, there are many reasons that may be behind this initiative, but the important thing here is the interest of governments in blockchain, I think that is what we can highlight from all this.
Thanks friend!
It is said, that the government in China will also impose payment of civil servants' salaries using the crypto currency.
@tipu curate
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It is an intelligent move on the part of the banks and governments. I guess they see the great potential of fill up with cash charging in cryptos.
It is an opportunity that they are taking advantage of, and in the case of China, it seems which will be very successful. The petro was not successful pirq was based on oil and we already know what p with that industry, totally paralyzed, in addition people don't trust him Interesting post, I congratulate you
It's really interesting to have China and France now delving into cryptocurrency and blockchain technology. This really implies that there is actually a positive hope and future in crypto industry.
I won't actually be surprised if the Chinese develop their unique cryptocurrency which is only gonna be used to trade, transact and for payment activities amongst it's citizens. We should all be hoping that cryptos will surely dominate the world as time goes on.
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️💕❤️💕❤️💕❤️
I really believe cryptocurrency is a game changer and if allowed into any system it will produce transparency and other unique features, china may end up creating a token where citizens will have no option but to transact with the coin. Great post
This post has been rewarded by the Steem Community Curation Project. #communitycuration06
It is good that most countries are testing their electronic money as i will call it. I can't really ascertain that countries will run a blockchain due to transparency and the inability to print more money, instead they will create an electronic money fixed to the fiat. More so, if they will run a blockchain based money, then it will be like steemit and hive when the parliament/legislative
arm of government and the executive arm can vote to make changes to the blockchain.