The CCP will control what you can buy, how much of it and whether you can buy anything at all. They will need to force people to use this currency.
One of the reasons may be that it worries about the “Libra” digital currency plan promoted by American technology giants, such as Facebook, and cross-border digital currencies in other Western countries, and even non-government Bitcoin. Therefore, the CCP has a sense of crisis and feels that it needs to take preemptive actions.
China’s state-owned banks recently forcibly acquired private enterprises, such as Jack Ma’s Alipay and Tencent’s WeChat Pay. Apparently, the regime is on its way to play a monopoly role in China’s digital payment through such integration and seizures.
The transaction scale of third-party mobile payment in China is as high as 50 trillion yuan ($7.23 trillion), with Alipay and Tenpay accounting for 55 percent and 39 percent, respectively. China’s state-owned banks have been absolutely unwilling to face the acceptance pressure of Alipay and Tenpay for a long time. With the digitization of the yuan, they will no longer have this worry. Bank runs have occurred in various regions in China from time to time in recent years. After the issuance of digital currency, the CCP’s burden from small banks running into bank runs will be eased off.