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Marzo 25, 2022 - < 1 min

The digital yuan is here

China is the first major world economy to launch digital version of its currency

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The Beijing 2022 Winter Olympics not only brought together the most outstanding exponents of winter sports. It was also the stage for the introduction to users around the world of the digital yuan, a project that the Central Bank of China started in 2014 and tested during 2021 in various locations of the country, totaling 260 million account holders of the digital currency and accumulated transactions for the equivalent of US$14 billion by the end of 2021. China is the first large economy to launch its digital currency, following in the footsteps of smaller nations such as the Bahamas, Nigeria and Cambodia, which have already done so.

Most of the world's central banks -including the Central Bank of Chile- havedigital currency projects with varying degrees of progress. The main advantages of digital currencies are lower transaction costs, greater security and ease of advancing financial inclusion (they are used through an app on a cell phone or a physical card). One of their weaknesses, however, is that they could affect the privacy of transactions.