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2022 with international guests. Jd.com, the e-commerce giant along with video platform Billy in December 2020, started accepting payments in digital Yuan. There is no announcement of a nationwide roll out yet, but regional tests have been successful. IS IT A THREAT TO US DOLLAR? This Yuan is less about the money and more about the data. It is currently difficult to say that it is a threat to the US dollar, as the digital Yuan lives below the weight. This is because 93% of the time China’s imports and 95% of its exports are dominated in dollars. Another thing being it depends on which currency the world businesses want to process and trade in, whether Yuan or dollar? The range of options to foreigners who find themselves with a pile of one is minimum, compared with a pile of dollars, euros, or Yen. Also, foreign companies have issues with the digital Yuan’s privacy concern as it gives a clear picture to the central bank of China of who is paying how much. Also, with digital, the holder of the currency becomes more vulnerable as any action to restrict will have an immediate effect. China has less high-quality assets, and the government control on the outflows of capital and begging exchange rate will all have to be changed to compete with the US dollar. For most international businesses, the Yuan still falls in the former camp and inhibits little sign of moving out. This Yuan is less about the money and more about the data.
Cryptocurrency: The New Futuristic Online Currency? By: Nihar Darnay (VESIM, Mumbai) Cryptocurrency, the current trending financial terminology in the entire globe. There are around 4000 cryptocurrencies in the entire world as of Jan 2021 and many of us are just aware of hardly 2-3 cryptos. Cryptocurrencies are viewed as a profit-making source due to its current boost. And because of this many people tend to ignore its volatility features and market efficiency. Many young minds out there have these common questions like, What exactly is a cryptocurrency? Why is there a bubble being created around it? Why such a hype? What technology does the crypto work on? Let’s try to clarify one question at a time.
