The Bank for International Settlements (BIS) has actively been testing and researching the viability of digital currencies, with various central banks around the world. At the forefront of the digital currency revolution is China. The People’s Bank of China (PBOC) is leading from the front, with major initiatives launched across several Chinese cities and territories, including Macau, Hong Kong, the Yangtze River Delta, Guangdong Provence, and Beijing Tianjin-Hebei. China’s interest in launching a digital currency project has widespread ramifications for the global economy. Known as DCEP, the Digital Currency Electronic Payment system, this digital version of the Chinese yuan is being issued to commercial banks across the country, and is being backed by cash and cash equivalents. The PBOC has implemented strict KYC policies and is practicing due diligence to ensure the integrity of the system.
Private Sector Investing in Yuan Chain Coin (YCC)
The DCEP has far-reaching implications for the global economy, vis-a-vis the global digital payment market. The fact that the Chinese government is actively engaged in creating a digital currency, similar to the Chinese yuan is significant. The digital yuan is attracting tremendous attention in China, and elsewhere, and already online payment providers such as WeChat and AliPay are facilitating digital currency transactions.
In tandem with PBOC efforts, various private sector initiatives are also fast-tracking the development of digital currencies for local and international transactions purposes, foremost among them is the Yuan Chain Coin (YCC). Backed by major financial trading enterprise Investa-Cap, the YCC is already making waves in the global cryptocurrency scene.
The YCC is a digital currency which runs on the Ethereum platform. It has a current supply of 10 billion tokens in circulation, and actively trades across 4 markets. This up-and-coming cryptocurrency has a USD equivalent price of $0.012365 per unit YCC (July 7, 2021).
The enterprise-level blockchain technology behind YCC allows for multiple application contracts to be constructed, including Dao, Defi, and NFT. It uses a POS33 consensus mechanism, for rapid transactions processing, and quick generation of blocks. It supports a 2-layer multi-chain blockchain architecture for enhanced performance. Among the many characteristics of the original YCC blockchain are the following:
- Eco-friendly blockchain
- Heterogeneous functionality across nodes
- Bug fixing to repair flawed smart contracts
- Stringent authentication and safety protocols
- Low latency with a minimum block interval of just 2 seconds
- Cross-chain functionality on public, private, and alliance chains
- More than 10,000 transactions per second on the public chain, and more than 100,000 transactions per second on the private chain
User Applications for YCC Blockchain
YCC has multiple application scenarios in an integrated digital economy. These include supply chain management, trading purposes, global points alliance, financial accounting systems, industry blockchain, security command systems, government affairs blockchain, e-commerce cross-border transactions, charity, and voting issues, and supply chain management. Already, YCC is supported across multiple trading platforms including HADAX, Zhaobi.com, HOTBIT, and HitBTC. The company has partnered with BitGo, and MyToken, among others.
The eco-friendly blockchain for YCC recently partnered with Huobi HECO chain ecology, opening the one-coin multi-chain ecological network. The Heco decentralized exchange allows the YCC capital pool to access YCC transactions. The fully diluted market capitalization of YCC is $124,313,120 (July 7, 2021), and ranked at #3184 on the crypto rankings. While the current supply is 10 billion YCC, some 4.55 billion are currently in circulation.
How Are Chinese People Taking to Digital Currency?
The Chinese government has actively been introducing its populace to digital Yuan, notably through the lottery. Some 200,000 envelopes were delivered via the lottery, with 200 digital Yuan apiece. The total amount was US$6.2 million. Various other lotteries have also used digital yuan, notably in cities like Shenzhen. In February 2021, 40 million digital yuan was distributed across Chengdu, while new areas in the province of Hebie have been issuing salaries in digital currency.
China’s recent clampdown on the Bitcoin markets is a clear indication that they wish to gain control over the digital currency market, and prioritize the digital yuan as the de facto digital currency in the country. The rapid appreciation of the Chinese yuan vis-a-vis the US dollar is indicative of the future prospects of this up-and-coming digital currency.