China's central bank plans to expand the areas covered by digital currency trials in four regions. The announcement was made by a top representative from the central bank, while also highlighting the People's Bank's increased digitalization efforts in the past year.
China's Government will Increase Digital Yuan Coverage in Four Provinces
The Chinese authorities plan to expand the area of digital yuan's application in four pilot cities to the rest of their provinces. These include Shenzhen, South China's Guangdong Province and Suzhou, in the eastern Jiangsu Province.
The government in Beijing plans to upgrade province-wide testing in these areas, according to the English-language newspaper Global Times. This quote is from a report published Monday by Cnstock.com.
Fan Yifei, Deputy Governor of People's Bank of China(PBOC), announced the plan during an economic forum this past week. High-ranking officials stressed that the monetary regulator has been pushing for financial digitalization acceleration since the start of the year. He pointed out that the authority had outlined the country’s financial technology development plan for the period up to 2025.
Fan also stressed the importance of securing key technology in order to improve China's financial system, build a financial infrastructure that can adapt and support the development of the Chinese digital economy, and to transform the Chinese economy.
The PBOC executive noted that the digital yuan was used in multiple economic sectors such as retail and wholesale, catering and leisure, and government payments via online and offline channels. He argued that the use of the digital currency in the four first trial cities should be extended to the provincial level.
Fan Yifei's new statements follow earlier this month when the deputy governor urged for a wider range of use-case scenarios to be considered for China's central banks digital currency (CBDC). To increase the convenience of users of the eCNY platform, he also called for better integration between the digital yuan and traditional electronic payment tools to improve the user experience.
Are you optimistic that China will expand the testing area for the digital Yuan in the coming year? Leave a comment below.
Frequently Asked Questions
Can the government take your gold
You own your gold and therefore the government cannot seize it. You have earned it by working hard for it. It belongs exclusively to you. This rule could be broken by exceptions. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even if taxes are not paid, gold is still your property.
Can I hold a gold ETF in a Roth IRA?
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
An Individual Retirement Annuity (IRA) is also available. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs will not be taxed
How to Open a Precious Metal IRA?
First, you must decide if your Individual Retirement Account (IRA) is what you want. If you do, you must open the account by completing Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form must be submitted within 60 days of the account opening. You can then start investing once you have this completed. You may also choose to contribute directly from your paycheck using payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will look identical to an existing IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS stipulates that you must have earned income and be at least 18-years old. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. And, you have to make contributions regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. But, you'll only be able to purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. They don't yield dividends like bonds and stocks. Therefore, you will lose more money than you gain over time.
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts think that this could change in the near future. They believe gold prices could increase dramatically if there is another global financial crises.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
These are some important things to remember if your goal is to invest in gold.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save for retirement while still investing your gold savings. Gold does offer an extra layer of protection for those who reach retirement age.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offers varying levels of flexibility and security.
- Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.
So, if you're thinking about buying gold, make sure you do your research first. Make sure to protect any gold you already own.
How much should precious metals make up your portfolio?
To answer this question we need to first define precious metals. Precious Metals are elements that have a very high relative value to other commodities. This makes them very valuable in terms of trading and investment. Gold is by far the most common precious metal traded today.
However, many other types of precious metals exist, including silver and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also relatively unaffected both by inflation and deflation.
The general trend is for precious metals to increase in price with the overall market. However, they may not always move in synchrony with each other. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rates which makes bonds less appealing investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. Because they are rare, they become more pricey and lose value.
Diversifying across precious metals is a great way to maximize your investment returns. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Lawful – WSJ
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads, Example and Risk Metrics
3 Ways to Invest in Gold for Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. You can invest in gold through your 401(k), if you have one at work. You might also consider investing in gold outside your workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. You may also want to purchase precious metals from a reputable dealer if you don’t already have them.
These are the rules for gold investing:
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, invest in cash. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. Physical gold coins are easier to sell than certificates. You don't have to store physical gold coins.
- Diversify your Portfolio – Don't put all your eggs in one basket. In other words, spread your wealth around by investing in different assets. This can reduce market volatility and help you be more flexible.
By: Lubomir Tassev
Title: China to Expand Digital Yuan Testing in Pilot Cities to Provincial Level
Sourced From: news.bitcoin.com/china-to-expand-digital-yuan-testing-in-pilot-cities-to-provincial-level/
Published Date: Wed, 21 Sep 2022 08:30:44 +0000