Digital Yuan: two words that have been causing a lot of debate when it comes to the Beijing Winter Olympics, which started this Friday (4).
After several tests in the country, China decided to launch its digital currency as the official means of payment for games. This sparked discussions in several countries about data security.
During the event, only Digital Yuan, cash and Visa cards, one of the sponsors of the games, will be accepted as payment.
According to Tecnobank’s Director of Technology and Operations, Adriana Saluceste, the news may actually be good news for the future of financial transactions.
“Digital Yuan has become popular in China as an alternative means of payment to existing digital wallets. In the last two years, China has put the currency in the test phase and saw the Winter Olympics as an appeal for a real proof of the digital currency also among foreigners”, he explains.
As Adriana explained, digital currency is an extension of physical currency. But it is for use in a virtual environment, issued and guaranteed by the federal monetary authority.
“With it, it is possible to move money that does not physically exist”, explains Adriana.
Still according to her, it is not today that the use of digital currencies has become popular around the world. But the Chinese experience over the winter games can be decisive for this to become a definitive trend.
Adriana believes that, in the near future, this type of payment method can, for example, facilitate the daily life of those who want to change cars or houses.
The initiative expands access to more agile and lower-cost financial transactions. People will be able to choose to handle their money conventionally or digitally.
“In the purchase of a property or car, the transfer of money would be made simultaneously with the registration of the transfer of the property, which would eliminate bureaucracy and risks”, points out Adriana.
According to the expert, currently, the security of digital currency is the same as that of paper money. However, the government can more easily monitor the money supply in the digital environment.
This security will be closely linked to the operators’ security, according to Adriana.
“What can be done is using the same technology as cryptocurrencies, the blockchain, a system that allows you to track the sending and receiving of information over the internet, in addition to having a protocol that dictates the production of new assets”, she concluded.