2016-11-18 Fri

China has started testing their own digital currency known ‘ChinaCoin’ as to replace paper currency in future. These coins are similar to Bitcoins which works on the concept of cryptography. Officials have announced that the introduction of digital currency will help in controlling money laundering, stop the outflow of currency to foreign locations and to stop tax evasion. It will also improve transparency and convenience during financial transactions. The Chinese government would be introducing this new currency in phases across some markets initially so that transition is smooth.

Digital currency also cuts on costs of maintenance. As per official figures, over $800 billion went out of China in 2015, which increased inflation. The introduction of digital currency will reduce the country’s dependence on US dollars.

Ecuador became the first country in the world to roll out its own digital cash in February 2015. Sweden is another country which majorly uses digital currency, but unlike Ecuador and China, they are not sponsored by the state.