- China Launches iPhone And Android Apps for Its Digital Currency
by The digital yuan isn’t a cryptocurrency, though
China has rolled out a pilot version of an app that allows users to store and pay with digital yuan, also known as e-CNY, as reported by the South China Morning Post. And no, the digital yuan isn’t a cryptocurrency — it was developed by the People’s Bank of China (PBOC) to replace banknotes and coins; thus, it isn’t a decentralized form of payment, nor will it operate on the blockchain.
Although it might sound like we already pay with digital cash when we use a credit card or an online payment service like PayPal and Apple Pay, the digital yuan isn’t anything like that. e-CNY is essentially physical cash converted into a digital form, and it’s been in the works since 2014. According to CNBC, distribution of the digital currency will take place using a two-tier system that transfers e-CNY from the PBOC to commercial banks. Banks will then distribute the currency directly to consumers.