China is Already a Digital Economy, so why Introduce a Central Bank Digital Currency?

China has been trending away from cash and toward digital payments for quite some time now. In 2018, 3.8 quadrillion yuan was remitted using plastic cards, cheques, electronic transfers, and other formal methods. According to Bloomberg, September 11, 2019, in the first quarter of 2019, payments apps like AliPay and WeChat accounted for 59 trillion yuan worth of payments. Boasting strong adoption numbers, there is an obvious agenda behind China launching a digital currency.

Control Over the System

A financial system where the majority of payments are routed through the private sector takes a lot of control away from the government.

China and the United States, in particular, have a problem with giving up a significant portion of control. This explains why one is launching a state run…

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