In India, we use different online applications to do day-to-day transactions, such as Google Pay, PhonePe, Paytm, Online banking applications, and PayPal. Still, these are the applications that make money exchangeable with physical cash. For instance, if I send you money in digital form via one of the above applications, I request you to give me the paper cash in exchange for the money that I sent, and you will provide me with paper currency.

We do it through these online applications, but the digital currency term is separate in China because there are also different online payment methods such as Alipay, WeChat Pay, and other online banking applications. Still, people of China have started using the digital yuan app for transactions. So what is the difference between the usual online payment application and the digital yuan application? Let’s read the full article to understand it or visit the yuan pay group app.

Digital yuan in brief

Digital yuan is a new term in china that enables Chinese citizens to use it for buying goods and services online or offline using a single mobile application called digital yuan application that is available on the Chinese app store. Still, you will not find it in the other countries’ app stores.

The main motive for creating this digital yuan is to make China digital and remove physical money from the country so that people can only use digital money. The government and the central bank of china can track the small to small transactions of a single user, which will help prevent fraud, money laundering, exchange of illegal goods and services, and tax evasions.

Since the control of your digital yuan is in the hands of the government, when you break any rule, the government will automatically deduct money from your digital wallet, making the proper legal discipline or system in china.

Difference between other online payment applications and the Digital yuan application

Many people asked this question: If there are already online payment applications such as Alipay and WeChat pay in china, what is unique in the digital yuan application? Well, let’s understand it with an illustration given below:-

Suppose you use the Alipay application to do online transactions such as paying your friends or to offline and online merchants to buy goods and services. Still, the problem is that you are using a third-party company’s payment system that may be bankrupt in the future, and you have to bear the loss in case of losing your money.

And the second problem is that these digital payments will not prevent the circulation of cash in the country because you can send in money from Alipay or WeChat pay and take the money in exchange, which means the money is in circulation. Still, the Chinese government wants to make the economy cashless.

The digital yuan app is under the custody of China’s government and central bank, which means they can control and manage people’s funds and prevent physical cash from more powerful nations.

About the digital yuan app

The digital yuan application is a platform recently launched in the top 23 cities of China, meaning the people in these cities can use the digital yuan application. This application has the same user interface as the other online applications, such as Alipay and WeChat Pay, so people do not have to face any issues operating the application.

The digital yuan application is only accessible through the Chinese app stores and available on the IOS and android app stores. The foreigners cannot download the application because it is not available internationally.

Still, the government plans to launch it internationally to reach more significant markets and gain popularity. The installation of the digital yuan application is increasing rapidly, which crossed two-fifty million (250M) downloads.

Is a digital yuan wallet different?

Yes, digital yuan is an application, and a wallet is an in-built part of the application that you can use to store or hold the digital yuan and send and receive the digital yuan through the same wallet.

For instance, you all know about the PayPal payment gateway that is an application but has a wallet where you can see the received funds from your bank or other people who sent you and use it according to your choice. So wallet is a space on the application that will help you store the digital coins; similarly, the digital yuan wallet works.