By Mark Ackman
China’s Central Bank’s Digital currency sees a further expansion in its usage. In a recent development, the currency will be used for e-commerce payments.
Moreover, the country has also regulated Digital Yuan as the payment method for import taxation.
China has also started to issue the digital yuan as import tax refunds. These funds were given to Huizhou Tianbao Chuangneng Technology.
In total the company received funds worth $1,035 in the form of Digital Yuan. The authorities are exploring further use cases for Digital Yuan.
The advancements enable regional finance divisions to receive and process digital yuan tax reimbursements in a more expeditious and effective manner.
Importance of Digital Yuan in China’s Cross Border Taxation
A large number of Chinese are paying their import taxes using the Digital Yuan. Officials in China are also giving special rebates to those paying taxes via digital yuan.
Moreover, a large number of businesses use digital yuan for parcel taxes. The taxation imposed on imports in China includes the parcel tax as a composite levy.
Regardless of the fact that Hong Kong is a sovereign state in terms of its economic paradigm. But China is also incorporating the usage of digital yuan in Hong Kong’s economic framework.
CCTV and the digital gadgets sector have seen the immense usage of digital yuan. Multiple users have admitted that the use of digital currencies has saved so much time for them.
Chinese officials have previously stated that government will give special rebates to those users and business outlets who will use digital yuan as a payment method.
When it comes to making payments through digital yuan all the users have to do is scan the QR code.
The global adoption of the digital yuan is also on the rise, extensive tests are being carried out in Hong Kong and Macau. It’s just a matter of time before the digital yuan goes global.
The Price of Digital Yuan and Its Future?
As of this writing, the price of digital yuan was valued at around $0.050315 USD, in addition to that, its trade volume exceeded $354,066 USD in the past 24 hours.
Economic experts believe that the digital yuan will play a significant role in diminishing the circulation of cash in the market.
Hence, it will deter inflation and devaluation of the yuan in the future. This will also give users much-needed authority over their transactions.
The current price of digital yuan marks an increase of its price by 1.50%.
Experts have predicted that by the end of this month, the price of digital yuan can reach the $0.30 mark.
Currently, the currency is being traded across the four different blockchains. The currency’s market supply is near 10,000,000,000 tokens.
Experts believe that in the future the digital yuan’s adoption will increase further. As things, stand digital yuan is bullish.
The next level of resistance for the digital yuan is at $0.25, if the currency manages to touch this mark in short term, its price will go further high.
There are multiple rumors that in the future cryptocurrency will be used to purchase securities.
Experts do believe that right now is the perfect time for investors to add digital yuan to their portfolios.
Regardless of the fact that the cryptocurrency market is fighting against the regulators’ actions, the digital yuan is finding ways to use its adoption.
Hence, it is the perfect long-term investment opportunity. Those investors who are looking for long-term gain should immediately invest in the digital yuan.
It might soon reach an overpriced zone. Currently, the currency’s technical indicators are very positive, its 30-day moving average is near the 0.70 mark.
Its current price is also increasing, and some of the world’s biggest payment companies are in talks with Chinese authorities over the usage of digital yuan.
In the coming weeks, there might be increased buying pressure on the digital yuan in the market because crypto whales are looking to break the bank to buy the digital yuan.