The Banking Executive Magazine - January 2022 Issue

China Launches its Digital Yuan Cryptocurrency blockchain collects information to- gether in groups, known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. All new information that follows that freshly added block is compiled into a newly formed block that will then also be added to the chain once filled. A database usually structures its data into tables, whereas a blockchain, like its name implies, structures its data into chunks (blocks) that are strung together. This data structure inherently makes an irreversible time line of data when implemented in a decentralized nature. Blockchain is a type of shared database that differs from a typical database in the way that it stores information; blockchains store data in blocks that are then linked together via cryptog- raphy. Different types of information can be stored on a blockchain, but the most common use so far has been as a ledger for transactions. The goal of blockchain is to allow digital infor- mation to be recorded and distrib- uted, but not edited. This is why blockchains are also known as a dis- tributed ledger technology (DLT). TRADING DIGITAL YUAN The Chinese government has in- formed that the company YuanPay Group will be in charge of the pur- chase and marketing of the digital yuan. The sales of China's digital coin offi- cially started and currently these coins can be bought only from Yuan- Pay Group at the price listed on their official website. Australia is one of the first countries where sales began. Chinese Finance Minister Liu Kun announced that the starting price of the coin will be only US$0,01. How- ever, according to China Debt Man- agement Office DMO Financial Group forecasts, in the next six months the price can easily increase up to 1,000%, with a chance of sur- passing Bitcoin in terms of price and capitalization in 10 years. In Aus- tralia YuanPay Group has started a marketing campaign. Steps to buy Chinese digital yuan are simple including filling out all per- sonal details and purchase details and executing the order. Initially, the digital yuan will not change significantly how money cir- culates through China’s financial sys- the BANKING EXECUTIVE 10 ISSUE 157 JANUARY 2022