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South Korean traders accept the digital yuan

June 11, 2020

South Korean media suggest that local merchants may accept the next digital yuan as a payment method once the COVID-19 pandemic is over and the influx of Chinese tourists to the country is increasing.

According to the Yonhap news agency Domestic traders have increasingly considered opening up China’s next digital currencyciting some tourist shops in their examples.

Use Chinese tourism

The report details that some stores in the Myeongdong district in Seoul have accepted payments with Alipay, showing interest in customers in China.

South Korean traders accept the digital yuanSouth Korean traders accept the digital yuan

The COVID-19 crisis has reportedly generated nearly $ 2 billion in tourism revenue. Partly because of this fact Traders have started to consider the digital yuan as a payment method as soon as it is released.

Risks of digital yuan acceptance abroad

However, The author of the article warned against accepting the digital yuan as a payment method. They cite privacy concerns and the oversight of the “Big Brother”:

“If people in other countries use the ‘digital yuan’, which is centrally managed by the People’s Bank of China, on a large scale, the use is likely to be exposed to the Chinese authorities.”

The Yonhap author quotes that the Chinese digital currency has “a completely different philosophical and technological basis than blockchain-based Bitcoin technology (BTC)”.

The concerns are shared by other experts, such as Joel Telpner, lawyer and advisor to the Marshall Islands digital state project. He told Cointelegraph about the motivations of countries like China to create a government-sponsored digital asset:

“I think the motivations are not necessarily the same in all countries for better or for worse. I see China a little differently than in other countries because I believe and this is only my own conviction, but I think one of the motivations for China is ensuring that it can maintain control over payments and outflows by creating a digital currency with an integrated passport for the Chinese government that will unfortunately also become a monitoring tool. “

Latest developments of the digital yuan project

On April 15, Cointelegraph reported that screenshots of an alleged pilot version of a wallet app for China’s next digital yuan were posted on social media.. It has been suggested that the app be tested in four Chinese cities.

Former president of the People’s Bank of China, Li Lihui, said on May 6 that the introduction of the digital yuan could replace cash if critical conditions are met.