Unlike “ conventional ” cryptocurrencies, a central bank controls the digital yuan – in this case, the People’s Bank of China. This decision gives the country more power and, in theory, more stability than often volatile formats like bitcoin. China can do more to embrace a cashless society without relying on foreign technology.
China will not be alone. Countries like Japan and Venezuela explore or use their own digital currencies. The move could, however, give China a head start in the real world and could fuel the efforts of other countries to develop virtual money.