Li Lahui, the former bank of China President is optimistic that the digital yuan is competent enough to replace cash, provided it is handled properly and few requirements are met.

There's a lot of anticipation in China and excitement regarding the digital currency.  Searches, posts all have gone through the roof in recent times as the digital yuan has entered the testing phase.
<h2>What is Needed For Digital Yuan to Flourish</h2>
The former president said in the <a href="http://zhibo.people.cn/watch/5861247" target="_blank" rel="noopener">live stream</a> that he believes that one area where the CBDC would beat Alipay or Wechat digital payment options is that the digital yuan doesn't need a third-party bank to run. However, he believes that is not enough for digital yuan to become a complete force to be reckoned with. To make that happen, the currency should become domineering, get the acceptance of the people of the country that it is a better choice than what they have at their disposal right now, have low transaction fees and run as an efficient and secure payment of system. He also believes it should be on a big commercial exhale for mass adoption.

According to him, there are three types of digital currencies, one that is centrally backed, one which is Blockchain-based and others that are issues but trusted firms around the globe. Li believes that digital yuan would be similar to bitcoin in maintaining anonymity but however,  thinks that there would be some restriction imposed on it since it would be centralised.

The  Public Bank of China has launched tests for digital yuan in four major Chinese cities and also have started using it as a form of payment settlement or pay in a few sectors in the country. Due to COVID-19, the plans to launch were halted but expectations are high now that the country is recovering. People expect it to be launched by mid-2021.

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Former Bank of China President Confident Digital Yuan Can Replace Cash

Li Lahui believes that if four conditions are met, digital Yuan would replace cash,while also claiming it has an upper hand over the likes of AliPay

Zain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.

Former Bank of China President Confident Digital Yuan Can Replace Cash

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