South Korean media suggested that local sellers are likely to start accepting Chinese digital yuan. The coronavirus pendemia is beginning to pass, and more and more Chinese tourists are coming to South Korea. According to an news agency Yonhap many sellers are considering introducing payments in the digital yuan, due to the slowdown in the tourism industry.
Reaping the benefits of Chinese tourism
According to the report, in the Seoulu – Myeongdong district, some stores accept payments via the Chinese application Alipay, thereby increasing the interest of Chinese customers.
Reports show that the COVID-19 crisis has resulted in losses of nearly $ 2 billion in tourism revenue. Partly for this reason, traders began considering the introduction of payments in the digital yuan after it has been officially launched.
The risk of taking digital yuan in a foreign country
The author of the article in Yonhap, however, warned against introducing such a payment method. He relied on privacy issues and the supervision of Chinese authorities:
“If people from other countries make widespread use of the” digital yuan “, centrally managed by the People’s Bank of China, it is likely that its use will be controlled by the Chinese authorities.”
He also added that the Chinese digital currency has “a completely different philosophical and technological base than the blockchain technology on which Bitcoin is based.”
Other experts, such as Joel Telpner, lawyer and adviser on the digital, sovereign currency of the Marshall Islands, share these fears. Telpner explained what motivates countries like China to create a state digital currency:
“I think motivation is not the same in all countries. I look at China a little differently than at other countries. I believe that what motivates China to create its own digital currency is to make sure that it is able to maintain control over payments and cash flow. China can do this by creating a digital currency that has a built-in identifier that provides information to the Chinese government, and is unfortunately becoming a surveillance tool. “
How is the digital yuan project developing?
April 15 Cointelegraph posted informationscreenshots of alleged pilot versions of the wallet for storing digital yuan are circulating on social networks. It was suggested that this application was tested in four Chinese cities.
On May 6, former president of the People’s Bank of China, Li Lihui said that the launch of the digital yuan could actually replace cash if the necessary conditions are met.