Today, the cryptocurrency economy is spreading at a high pace, but a few companies are still unwilling to accept it. Some multinational companies providing their services across the globe are now switching to digital tokens. While others are not in favour of this digital ecosystem, and they want to stick to the traditional money system. Regardless of what others think, a new digital currency, the digital Yuan, is emerging. It is regarded as one of the most incredible digital tokens of all time because the government of China backs it. The Chinese government has technological updates in their hands; therefore, they can make something incredible and turn out to be the best option for crypto coins. But, when it comes to the global giants of the technology industry, they still are not under the influence of the Chinese digital Yuan. With the introduction of China’s currency, many other countries and central banks around the world are considering legal digital currencies, China’s digital Yuan is likely to be the currency of the future.
Tesla, a tech company, owned by Elon musk, deals in electronic vehicles. Towards the end of 2020, this company decided and was planning to accept digital crypto coins as a payment for their vehicles. However, later on, the company dropped the idea but initially, it also started to accept bitcoin as payment. Moreover, DOGE was the coin that was also accepted as a payment for the company’s electric vehicles. But, when it comes to the digital Yuan, it is a far cry. Elon musk, the owner of Tesla, does not favour Chinese digital currency because he strictly condemns anything that is not free of ideology. The Chinese government is willing to control the digital currency to possible ends, but Tesla does not favour this concept.
At the beginning of 2021, Tesla was the company that started to accept bitcoin as payment for electronic vehicles. Apart from this, the company also decided to invest $1.5 billion in bitcoin to maintain the cash flow and have an adequate investment in the bitcoin to accept it as a payment for its cars. However, this idea did not turn out to be very good because it led to fluctuations in the crypto market. Therefore, drop the idea. However, there have been a lot of rumours about Tesla accepting digital Yuan as payment for its vehicles. However, it is still a far cry, and we will examine its reasons.
Strict control – Control of the transaction medium, which the Chinese government will regulate, will be in the hands of the Chinese government. However, a crucial thing to be understood about the Chinese control is that they want strict command in their own hands. The same situation will be with the digital Yuan, for Tesla is no longer planning to accept the digital Yuan as a payment. So even though it except the digital ecosystem to large ends, when it comes to digital you want, they do not want to be bound by the Chinese dominance.
Chinese dominance – Another principal reason why Tesla CEO Elon musk is no longer interested in accepting cryptocurrencies as payment for electric vehicles is that it will lead to the dominance of a particular creator. In the case of the digital Yuan, the Chinese government will be the dominator everywhere; therefore, the company is unwilling to accept digital payments using the digital Yuan.
Partially Fiat – Recently, the CEO of Tesla accepted bitcoin as payment because it was completely decentralized. There was no central control, and everything was moving according to the market fluctuations. Market demand and supply were the reason for the price fluctuations of bitcoin, but it will not be the same with the digital Yuan. The control of the Chinese government on the prices as well as regulation of the digital Yuan will make it partially feet. Another very prominent reason is not making the Tesla CEO accept the digital Yuan easily.
US Dollar – The United States dollar is accepted everywhere in the world today. Therefore, the digital dollar is backed by a select Fiat currency. It is another very prominent reason why the Tesla company is nowadays accepting the digital dollar as a payment medium. But, when it comes to the digital Yuan, the company does not plan on accepting it as a payment any soon because of its control by the Chinese government. Moreover, the headquarters of Tesla is based in the United States of America, and the government of the USA has sanctions on China.
Several reasons have led the Tesla CEO to drop the idea of accepting digital cryptocurrencies and digital Yuan as a payment medium for the weekend. It does not mean I do not support the crypto coin ecosystem. The Tesla company is a strong supporter of the digital ecosystem, but they still want to make sure that people become the king of the market when it comes to accepting payments and regulations.