On May 21, 2020, a press report indicated that the release of the e-Yuan had attracted worldwide attention from investors hoping the cryptocurrency will reach heights to parallel those achieved by bitcoin.
Shortly after the e-Yuan announcement in April, Chinese technology stocks started surging steadily with investments from foreigners reaching over $26.99 Billion.
Moreover, popular U.S franchises such as Starbucks and McDonald’s reportedly began participating in a Yuan trial following a successful pilot for the digital currency on April 22.
Now, the SmartCard Marketing Systems Inc. (SMKG), an industry leader in specialized industry cloud and mobile apps to FinTech markets, sees the potential in China’s digital currency.
SMKG stated that the commitment to markets from China to launch the e-Yuan expands the company’s influence into global markets with far-reaching payment rails.
In the wake of the ongoing global economic lockdown, many folks have been searching for high-potential stocks, and the launch of the e-Yuan could provide a golden opportunity for many investors to profit from technology stocks.
Will China’s Crypto Solve Their Bad Debt Issues?
According to senior blockchain researcher J. Rothers, the e-Yuan may provide a solution for Chinese long-standing bad debt problem.
The country currently has 2.4 trillion Yuan of officially documented bad debt due to the unlawful yet popular practice of obtaining multiple loans pledging the same collateral.
J. Rothers believes that using smart contracts provided by the e-Yuan currency will enable the Chinese central bank to track assets and liabilities to ensure that multiple loans are not taken over the same collateral.
The latest official announcement from the central bank of China regarding its national digital currency, which was published last month, stated that e-Yuan pilot test had been carried out in the cities of Shenzhen, Suzhou, Xiongan new area, and Chengdu.
There has been no update from Chinese government representatives on the formal launch of the e-Yuan, and its precise date remains mysterious.
Bad Actors Attempt To Profit from the e-Yuan
With the official launch date of China’s long-awaited digital Yuan remaining a secret, bad actors have jumped on the speculation surrounding the token’s unveiling to commit potential fraud.
Specifically, a company called Yuan Pay Group recently stepped in to impersonate digital Yuan officials, hoping to attract gullible investors. The company is advertising a “promotion deal” and promises high returns for investing in the digital currency. However, the Chinese officials warned investors last month that the rumoured information on the full take-off of the e-Yuan is untrue.