Kathmandu, China is developing a 'digital currency' like Bitcoin. The digital currency (CBDC) developed by the Central Bank of China will be used as the national currency. From this, it will be possible to trade as the official currency of the central bank.

Using the digital currency CBDC has its own social and economic benefits. It will also connect people who are not in the mainstream of financial flows and who are not in the traditional banking system to the digital medium national currency system. Using this currency, people from all over the world will be able to easily access the 'digital economy' through mobile smart devices.

Unlike private cryptocurrencies, the CBDC is expected to help reduce financial crimes such as money laundering, support for terrorist activities and tax evasion. In addition, while maintaining monetary control and transparency in the state, it will also curb the undue influence of large private and non-governmental entities such as Facebook and Alibaba and the threat of power outflows.

According to a 2021 study by the Bank for International Settlements, 86 percent of the world's central banks are currently testing the digital currency CBDC.

Currently, technology tycoons such as China's Ant Group, Tencent Holding and JD.com have been instructed by the Chinese central government to cooperate with the People's Bank of China and other state-owned banks and the Digital Currency Research Institute of China on digital yuan.