Now that the notes are no longer worth anything, China has done something that threatens the monopoly of the US dollar

The world’s first digital currency is going to be launched on a trial basis in the Chinese cities of Shenzhen, Suzhou, Chengdu, Beijing and Xiao’an.

Chinese state media say May’s salary will be paid in the form of digital currency in the cities chosen for the trial.

The digital currency can be used through a mobile phone app. Even before this, many private institutions in China were using the digital currency facility, but they were not yet a substitute for traditional currency.

It should be noted that officially digital currency will be used as an alternative to traditional currency for the first time.

According to the central bank of the yen, digital currency electronic payments (DCEP) will be used on a limited scale for now.

Basically there are three differences between cryptocurrency i.e. Bitcoin and DCEP. Bitcoin mining can be done from anywhere and is controlled by this algorithm while DCEP is created and controlled only by the government.

Second, the core technology of DCEP is different. The blockchain ledger is controlled by the government and no one else is authorized in the system. The third difference is that the DCEP will be used as the current currency and linked to the entire economic system.

According to the newspaper China Daily, the use of the Chinese-made currency DCEP in trade is considered a threat to the monopoly of the US dollar, which the US is using as a weapon.