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It is an undeniable fact that a technological revolution is taking place in our economy right now. Vast volumes of data can be gathered, handled, and communicated thanks to the combination of new digital technology and increased online activity. As a result, many tasks now cost much less.
The idea of digital money is not new. Commercial banks have used digital money for decades and now often utilize digital payment methods. Banks are already given wholesale access to central banks' digital currency.
However, many nations, including China and Egypt, continue to oppose the idea of a digital currency because they view it as unrealistic and believe that implementing one will only increase the financial system's vulnerability to potential cybersecurity threats like ransomware and threats to financial stability.
The Likelihood of a Weakened Yuan in the Face of Depreciation
Now that the Chinese yuan slipped to 7.2244 per U.S. dollar (USD), ordinary Chinese people may use cryptocurrencies once more to get over severe capital controls as they did in the past to resist the yuan's fast depreciation.
According to statistics from charting platform TradingView, the record set on Wednesday was the lowest since 2008, bringing the year-to-date loss to around 14%.
This just proves that the time has really come to buy digital assets, especially for Chinese investors. Because that is the main reason why bitcoin and other cryptocurrencies were created in the first place—to protect against the volatility of fiat currencies.
Technology Has Indeed Transformed the World
Over the last few decades, The world has witnessed a technological breakthrough, sparking a race in which creating and using the most recent technology has never been more important. As a result of this technological transition, the global economy is rapidly moving toward being cashless, which is demonstrated by an increase in the use of digital transactions. This shift is the result of the convenience and money-saving advantages of digital transactions over those involving actual cash.
There have been previous discussions of what I'm about to say. Given that the rate of supply expansion for bitcoin (BTC) is half every four years, I honestly feel that decentralized cryptocurrencies like bitcoin are superior to government/central bank-owned fiat currencies. I'm also sure that cryptocurrency experts share similar sentiments.