Digital Yuan and the Importance of Adopting Digital Currencies


The rise of popularity of cryptocurrencies and other digital currency alternatives are helping people to envision the complete conclusion to the use of cash around the world. While it may seem too abrupt or completely pointless to some, it is important to remember that the modes of payment have continuously evolved through the millenia, and digital and virtual currencies such as the Digital Yuan are just the most logical next step for the world. 

The rise of popularity of cryptocurrencies and other digital currency alternatives are helping people to envision the complete conclusion to the use of cash around the world. While it may seem too abrupt or completely pointless to some, it is important to remember that the modes of payment have continuously evolved through the millenia, and digital and virtual currencies such as the Digital Yuan are just the most logical next step for the world. 


The main reason for the need for adopting digital currency is the rapid development of the digital economy and the digitalization of our daily activities. Not including monetary transactions in this shift is to deny an inevitability. According to a survey conducted by the People’s Bank of China in 2019, the number of transactions via mobile payment comprised 66% of the total within the PRC. 


Another inevitable reason for the eventual switch to digital currency is the extremely high cost of cash management. Every element of the cash cycle consumes a large amount of human, physical, and financial resources. Banknote design, minting and printing, transportation, deposit and withdrawal, identification, processing, reflow, destruction, counterfeit prevention all cost a country’s economy in the billions. Not to mention, significant amounts of cash are lost and damaged every year.


Finally, cash costs people a lot of time cumulatively – Lines at ATMs, time taken sorting change, and the slowness of the cash handling in general. Strategic adoption of digital and virtual currencies are going to be a solid solution to many of the issues presented by the use of cash.