Brief introduction of MGS decentralized exchange
Publish: 2021-03-26 03:05:47
1. When it comes to digital currency, the topic is the exchange. If you want to hold digital currency, besides mining, the most convenient and quick way is to buy it from the exchange
we all know that one of the biggest characteristics of digital currency is decentralization. However, 90% of the exchanges in the market are under centralized management. Users need to transfer funds to the large account of the exchange, verify their identity information, and do not link currency transactions. Moreover, all information needs to be stored in the offline database of the exchange, All these seem to violate the decentralized spirit and centralized mode of blockchain, which makes users in a weak position, passively accept the "management" of the exchange, and also bear the risk of privacy leakage, hacker attack, exchange bankruptcy or running away
therefore, the emergence of decentralized exchanges has become an inevitable trend. Decentralized exchanges are also called DEX
currently, whaleex, newdex and gatechain DEX are the most representative decentralized transactions. In fact, it is a mode of wallet and wallet trading. Compared with the centralized exchange, it has obvious advantages. For example, all operations are carried out on the chain. It is publicly accessible and does not need to be registered. Anonymous trading and privacy are guaranteed. Users' assets are stored in a distributed way. They have 100% of the management rights of assets and have high security
however, although decentralized exchanges have obvious advantages, they are still not widely available in the market. Decentralized exchange is not a very mature mode, and there are still some problems, such as slow trading speed, poor liquidity, key loss, forgotten password and unable to retrieve account assets. Therefore, it needs to be further improved. However, it is undeniable that decentralized trading must be the mainstream mode of exchanges in the future.
we all know that one of the biggest characteristics of digital currency is decentralization. However, 90% of the exchanges in the market are under centralized management. Users need to transfer funds to the large account of the exchange, verify their identity information, and do not link currency transactions. Moreover, all information needs to be stored in the offline database of the exchange, All these seem to violate the decentralized spirit and centralized mode of blockchain, which makes users in a weak position, passively accept the "management" of the exchange, and also bear the risk of privacy leakage, hacker attack, exchange bankruptcy or running away
therefore, the emergence of decentralized exchanges has become an inevitable trend. Decentralized exchanges are also called DEX
currently, whaleex, newdex and gatechain DEX are the most representative decentralized transactions. In fact, it is a mode of wallet and wallet trading. Compared with the centralized exchange, it has obvious advantages. For example, all operations are carried out on the chain. It is publicly accessible and does not need to be registered. Anonymous trading and privacy are guaranteed. Users' assets are stored in a distributed way. They have 100% of the management rights of assets and have high security
however, although decentralized exchanges have obvious advantages, they are still not widely available in the market. Decentralized exchange is not a very mature mode, and there are still some problems, such as slow trading speed, poor liquidity, key loss, forgotten password and unable to retrieve account assets. Therefore, it needs to be further improved. However, it is undeniable that decentralized trading must be the mainstream mode of exchanges in the future.
2. My mother is 70 years old. She is an ordinary retired worker. Recently, she has been tricked into joining the virtual currency. I just want to ask whether it is the old lady who keeps up with the times or the swindlers who are all pervasive? The wise man should analyze it by himself. My conclusion is that the world is clear and the swindler praises it.
3. First of all, the decentralized exchange mainly carries out transaction matching, asset clearing and settlement on the chain. User assets are managed by smart contracts and controlled by users. The exchange does not touch user assets
secondly, the biggest value of the decentralized exchange is that users have absolute control over their own assets, and all transaction data and records will be linked through the blockchain smart contract, so as to ensure the openness and transparency of transactions and greatly rece the trust cost of users to the exchange
thirdly, it is very difficult for hackers to steal user assets unless they can get each user's private key. Even if the exchange's private key is leaked, the user's assets cannot be transferred without the user's private key, so it is very safe. With decentralized exchanges, you no longer have to worry about the risk of losing or stealing money
for this reason, with the graal maturity of the underlying technology of blockchain, decentralized exchange has great development potential, which is the trend in the future.
secondly, the biggest value of the decentralized exchange is that users have absolute control over their own assets, and all transaction data and records will be linked through the blockchain smart contract, so as to ensure the openness and transparency of transactions and greatly rece the trust cost of users to the exchange
thirdly, it is very difficult for hackers to steal user assets unless they can get each user's private key. Even if the exchange's private key is leaked, the user's assets cannot be transferred without the user's private key, so it is very safe. With decentralized exchanges, you no longer have to worry about the risk of losing or stealing money
for this reason, with the graal maturity of the underlying technology of blockchain, decentralized exchange has great development potential, which is the trend in the future.
4. Never trade on an illegal platform. You may be cheated by the platform and lose all your money. There are countless such cases. Therefore, we must be cautious about the platform that we don't know the details, and don't enter the gold trading at will.
5. Decentralization is a form of social relations and content proction formed in the development of the Internet. It is a new type of network content proction process relative to "centralization"
compared with the early Internet (WEB 1.0) era, Web 2.0 content is no longer proced by professional websites or specific groups, but the result of participation and creation by all Internet users with equal rights. Anyone can express their views on the Internet or create original content to proce information together
with the diversification of network service forms, the decentralized network model becomes more and more clear and possible. After the rise of Web 2.0, the services provided by Wikipedia, Flickr, blogger and other network service providers are decentralized. Any participant can submit content, and Internet users can co create or contribute content
with the emergence of more simple and easy-to-use decentralized network services, the characteristics of Web2.0 become more and more obvious. For example, the birth of services more suitable for ordinary Internet users, such as twitter and Facebook, makes it easier and more diversified to proce or contribute content to the Internet, thus enhancing the enthusiasm of Internet users to participate in the contribution and recing the threshold of procing content. Eventually, every netizen becomes a tiny and independent information provider, making the Internet more flat and content proction more diversified
decentralized computing is a computing mode that allocates hardware and software resources to each workstation or office. In contrast, centralized computing is to centralize most computing functions locally or remotely. Decentralized computing is a modern computing model. On the contrary, centralized computing generally existed in the early computing environment. A decentralized computer system has many advantages over the traditional centralized network. With the rapid development of desktop computers, their potential performance far exceeds the performance requirements of most business applications. As a result, most desktop computers have idle computing power. A decentralized computing system can maximize the efficiency of these potential. However, whether it increases the effectiveness of the whole network is still open to question.
compared with the early Internet (WEB 1.0) era, Web 2.0 content is no longer proced by professional websites or specific groups, but the result of participation and creation by all Internet users with equal rights. Anyone can express their views on the Internet or create original content to proce information together
with the diversification of network service forms, the decentralized network model becomes more and more clear and possible. After the rise of Web 2.0, the services provided by Wikipedia, Flickr, blogger and other network service providers are decentralized. Any participant can submit content, and Internet users can co create or contribute content
with the emergence of more simple and easy-to-use decentralized network services, the characteristics of Web2.0 become more and more obvious. For example, the birth of services more suitable for ordinary Internet users, such as twitter and Facebook, makes it easier and more diversified to proce or contribute content to the Internet, thus enhancing the enthusiasm of Internet users to participate in the contribution and recing the threshold of procing content. Eventually, every netizen becomes a tiny and independent information provider, making the Internet more flat and content proction more diversified
decentralized computing is a computing mode that allocates hardware and software resources to each workstation or office. In contrast, centralized computing is to centralize most computing functions locally or remotely. Decentralized computing is a modern computing model. On the contrary, centralized computing generally existed in the early computing environment. A decentralized computer system has many advantages over the traditional centralized network. With the rapid development of desktop computers, their potential performance far exceeds the performance requirements of most business applications. As a result, most desktop computers have idle computing power. A decentralized computing system can maximize the efficiency of these potential. However, whether it increases the effectiveness of the whole network is still open to question.
6. ⚠&# 65039;&# 9888;&# 65039; MGS relocation process:
1, recommender scans QR code to register
2, downloads MGS system
3, activates account
4, real name authentication, and can bind collection QR code
5 by the way. After real name authentication is passed, MGK maps, generates public key, copies public key and completes mapping
6. Go to the old system, pack the data, fill in the public key, verify the identity information, and submit for confirmation
finally, if the MGS data package shows that it has been packed, just wait a few minutes. Go to the new system to see if it has arrived. If it has not arrived for a long time, go to the old MGK system to see whether the data package status is packed or not. If it is not, remap and repackage
1, recommender scans QR code to register
2, downloads MGS system
3, activates account
4, real name authentication, and can bind collection QR code
5 by the way. After real name authentication is passed, MGK maps, generates public key, copies public key and completes mapping
6. Go to the old system, pack the data, fill in the public key, verify the identity information, and submit for confirmation
finally, if the MGS data package shows that it has been packed, just wait a few minutes. Go to the new system to see if it has arrived. If it has not arrived for a long time, go to the old MGK system to see whether the data package status is packed or not. If it is not, remap and repackage
7. Hello, this platform may belong to the pyramid scheme, similar to Ponzi scheme
if you make money, please don't promote it to your friends
if you have investment, please withdraw the fund in time
if you have loss, please stop it in time
if you make money but can't transfer, please report it to the relevant department
if you make money, please don't promote it to your friends
if you have investment, please withdraw the fund in time
if you have loss, please stop it in time
if you make money but can't transfer, please report it to the relevant department
8. 1、 The Central Bank of China should adopt a two-tier delivery system for digital money
it is a complex system engineering for big countries to issue central bank digital money. China has a vast territory and a large population. There are great differences in economic development, resource endowment and population ecation level among regions. In the process of designing, issuing and circulating central bank digital currency, we should fully consider the diversity and complexity of system and system design. For example, we need to consider the use of remote areas with insufficient network coverage. If one tier is adopted, it will face the great test brought by the above factors. In order to improve the convenience and service availability of the central bank's digital currency and enhance the public's willingness to use it, we can consider adopting two tier delivery to deal with the above difficulties
the "two-tier investment" is concive to making full use of the existing resources, talents, technology and other advantages of commercial institutions, and selecting the best through market driven, promoting innovation and competition. The IT infrastructure application and service system of commercial banks and other institutions has been relatively mature, the system has strong processing capacity, has accumulated certain experience in the application of financial technology, and the talent reserve is relatively sufficient. Therefore, in addition to the existing infrastructure, human resources and mature application and service system of commercial banks, it is a huge waste of social resources to start a new stove and repeat construction. On the premise of safety and reliability, the central bank and commercial banks and other institutions can cooperate closely, do not preset technical routes, fully mobilize market forces, and realize system optimization, joint development and joint operation through competition. This is not only concive to the integration of resources, play a joint force, but also concive to promoting innovation. Moreover, the public has been used to handling financial business through commercial institutions such as banks, and the two-tier delivery also helps to enhance the public's acceptance of the central bank's digital currency
"double layer investment" helps to disperse and resolve risks. In the past, the central bank has accumulated rich experience in the development of inter-bank payment and clearing system, but the inter-bank payment and clearing system directly serves financial institutions, and the central bank's digital currency directly serves the public, involving thousands of households. If only relying on the central bank's own strength to carry out R & D and support such a huge system, it is not easy to meet the goals of safety, efficiency and stability, as well as the needs of user experience. At the same time, the central bank is also subject to the objective constraints of budget, resources, personnel and technology. Through the design of two-level investment, the excessive concentration of risk can be avoided
"double layer investment" can avoid "financial disintermediation"“ Under the "single-layer delivery", the central bank directly releases digital money to the public, and the central bank's digital money will compete with commercial bank's deposit money. Obviously, the credit rating of the central bank's digital currency endorsed by the central bank is higher than that of the deposit currency of the commercial bank, which will crowd out the deposit of the commercial bank and may lead to "deposit move", thus affecting the loan delivery ability of the commercial bank. In addition, the rection of commercial banks' ability to absorb deposits will increase their dependence on the interbank market, raise capital prices, increase social financing costs, damage the real economy, and lead to "financial disintermediation". In order to maintain its lending capacity and financial stability, the central bank will have to subsidize commercial banks. In extreme cases, it will also subvert the existing financial system, leading to the "grand unification" of the central bank
to sum up, the "central bank agent delivery commercial institutions" double-layer delivery mode is not only suitable for China's national conditions, but also can make full use of existing resources and mobilize the enthusiasm of commercial banks. First of all, it does not change the relationship between creditor's rights and debt of currency in circulation. In order to ensure that the currency is not over issued, the agency needs to pay 100% of the reserve to the central bank. Therefore, the digital currency of the central bank held by the public is still the liability of the central bank, which is guaranteed by the credit of the central bank and has unlimited legal compensation. Secondly, if we do not change the existing money supply system and al account structure, there will be no competition for commercial banks' deposit currency, no increase in commercial banks' dependence on the interbank market, no impact on commercial banks' lending ability, and no "financial disintermediation" phenomenon. Thirdly, because it does not affect the existing monetary policy transmission mechanism, it will not strengthen the pro cyclical effect under the pressure environment, so it will not have a negative impact on the current mode of operation of the real economy. Finally, the model is more concive to the central bank to play the advantages of digital currency, save costs, improve the speed of money circulation, and improve the convenience and security of payment. In addition, e to the credit advantage of central bank endorsement, it is concive to restraining the public demand for private cryptocurrency and consolidating China's monetary sovereignty< Second, under the arrangement of the two-tier delivery system, the central bank's digital money should be released in a loosely coupled way and adhere to the centralized management mode
in order to maintain the attributes of the central bank's digital money and achieve the objectives of monetary policy and macro Prudential Management, the two-tier delivery system of the central bank's digital money should be different from the decentralized issuance mode of various tokens. First, because the central bank's digital currency is still the central bank's debt to the public, its relationship between creditor's rights and debt has not changed with the form of money, so it is still necessary to ensure the central bank's central position in the process of delivery. Second, we need to ensure and strengthen the central bank's macro Prudential and monetary policy control functions. Third, we should not change the al account system and maintain the original transmission mode of monetary policy. Fourth, in order to avoid the over issuance of money by the agency, it is necessary to have corresponding arrangements to realize the tracking and supervision of the central bank on the digital money supply
therefore, the central bank should adhere to the centralized delivery mode of digital money. However, the centralized delivery mode mentioned here is also different from the traditional electronic payment tools. The fund transfer of electronic payment instruments must be completed through the account, which is tightly coupled with the account. The digital currency of the central bank should be based on the loose coupling form of the account, so that the dependence of the transaction link on the account is greatly reced. In this way, it can not only be as easy to circulate as cash, but also realize controllable anonymity. Central bank digital currency holders can directly apply it to various scenarios, which is concive to the circulation and internationalization of RMB. In addition, if there is no anonymity of the third party, personal information and privacy will be disclosed; However, if the complete anonymity of the third party is allowed, it will encourage crimes, such as tax evasion, terrorist financing and money laundering. Therefore, in order to achieve a balance, it is necessary to achieve controllable anonymity and only disclose transaction data to the third party, the central bank. Under the loosely coupled account system, the agency can be required to transmit transaction data to the central bank asynchronously every day, which is not only convenient for the central bank to grasp the necessary data to ensure the realization of regulatory objectives such as prudent management and anti money laundering, but also can rece the system burden of commercial institutions< At present, M1 and M2 are based on commercial bank accounts, and have been electronic or digitized, so there is no need to use digital currency to digitize again. The inter-bank payment and clearing system (such as large and small payment system and online payment inter-bank clearing system) supporting M1 and M2 circulation, the intra-bank system of commercial banks and all kinds of network payment means of non bank payment institutions are running normally, constantly improving and upgrading, and becoming more efficient, which can meet the needs of China's economic development. Replacing M1 and M2 with central bank digital currency will not help to improve payment efficiency, but also cause huge waste of existing systems and resources. In contrast, the cost of issuing, printing, recycling and storage of existing banknotes and coins is high, the circulation system is multi-level, and it is inconvenient to carry, easy to be forged, anonymous and uncontrollable. There is a risk of being used for money laundering and other illegal and criminal activities, and the necessity of digitalization is increasing. In addition, non cash payment tools, such as traditional bank card and Internet payment, are based on account tight coupling mode, which can not fully meet the public's demand for easy-to-use and anonymous payment services, and can not completely replace M0. Especially in areas with poor account services and communication network coverage, people still rely on cash very much. The central bank digital currency maintains the properties and main characteristics of cash, meets the needs of portability and anonymity, and will be the best tool to replace cash
because the central bank's digital currency is a substitute for M0, it should not pay interest. This will not lead to "financial disintermediation", nor will it lead to inflation expectations. Accordingly, it will not have a big impact on the existing monetary system, financial system and the operation of the real economy
in the same way, since the central bank's digital currency is replaced by M0, it should also comply with all the existing regulations on cash management, anti money laundering and anti-terrorism financing. In order to cooperate with anti money laundering and other related work, relevant institutions can be required to report large amount and suspicious transactions of central bank's digital currency to the central bank. At the same time, in order to guide the central bank's digital currency to be used in small retail business scenarios, avoid the crowding out effect of deposits, and avoid the procyclical effect under arbitrage and pressure environment, it is necessary to set daily and annual cumulative trading limits, and stipulate large amount of scheled exchange. If necessary, we can also consider the implementation of hierarchical charges for the central bank's digital currency exchange. For small and low-frequency exchanges, we can not charge fees, but for large and high-frequency exchanges and transactions, we can charge higher fees to increase exchange costs and institutional friction. When the interest rate is below zero, this arrangement can also create conditions for the central bank to implement the negative interest rate policy< (4) the central bank should be cautious about loading smart contracts with digital currency.
according to the definition given by Nick Szabo, smart contracts are a set of commitments defined in digital form, including the agreements on which the contract participants can implement these commitments. Smart contracts are written into computer-readable code. Once the trigger condition is reached, it is automatically executed by the computer. It can load time, credit and other preconditions, and can also be applied to tax payment, anti-terrorism financing and other scenarios
however, as mentioned above, the central bank's digital currency is a substitute for M0 and has unlimited legal compensation, that is, it undertakes the functions of value scale, circulation means, payment means and value storage. The original cash does not carry any other social and administrative functions According to the regulations of the people's Republic of China on the administration of RMB, it is prohibited to damage RMB intentionally. Therefore, adding additional social or administrative functions to the cash may actually damage the RMB
in order to maintain the legal status of unlimited legal compensation, the digital currency of the central bank should not undertake other social and administrative functions besides the four functions of currency. In addition to the function of legal tender itself, the loading of smart contract will affect its legal compensation function, even make it fade into a valuable note, rece the degree of free use of China's central bank's digital currency, and also have a negative impact on the internationalization of RMB. It will also rece the speed of money circulation and affect the transmission of monetary policy and the central bank's performance of macro Prudential functions. At the same time, it may also infringe on citizens' right of privacy, which is not concive to the protection of indivial rights and interests.
it is a complex system engineering for big countries to issue central bank digital money. China has a vast territory and a large population. There are great differences in economic development, resource endowment and population ecation level among regions. In the process of designing, issuing and circulating central bank digital currency, we should fully consider the diversity and complexity of system and system design. For example, we need to consider the use of remote areas with insufficient network coverage. If one tier is adopted, it will face the great test brought by the above factors. In order to improve the convenience and service availability of the central bank's digital currency and enhance the public's willingness to use it, we can consider adopting two tier delivery to deal with the above difficulties
the "two-tier investment" is concive to making full use of the existing resources, talents, technology and other advantages of commercial institutions, and selecting the best through market driven, promoting innovation and competition. The IT infrastructure application and service system of commercial banks and other institutions has been relatively mature, the system has strong processing capacity, has accumulated certain experience in the application of financial technology, and the talent reserve is relatively sufficient. Therefore, in addition to the existing infrastructure, human resources and mature application and service system of commercial banks, it is a huge waste of social resources to start a new stove and repeat construction. On the premise of safety and reliability, the central bank and commercial banks and other institutions can cooperate closely, do not preset technical routes, fully mobilize market forces, and realize system optimization, joint development and joint operation through competition. This is not only concive to the integration of resources, play a joint force, but also concive to promoting innovation. Moreover, the public has been used to handling financial business through commercial institutions such as banks, and the two-tier delivery also helps to enhance the public's acceptance of the central bank's digital currency
"double layer investment" helps to disperse and resolve risks. In the past, the central bank has accumulated rich experience in the development of inter-bank payment and clearing system, but the inter-bank payment and clearing system directly serves financial institutions, and the central bank's digital currency directly serves the public, involving thousands of households. If only relying on the central bank's own strength to carry out R & D and support such a huge system, it is not easy to meet the goals of safety, efficiency and stability, as well as the needs of user experience. At the same time, the central bank is also subject to the objective constraints of budget, resources, personnel and technology. Through the design of two-level investment, the excessive concentration of risk can be avoided
"double layer investment" can avoid "financial disintermediation"“ Under the "single-layer delivery", the central bank directly releases digital money to the public, and the central bank's digital money will compete with commercial bank's deposit money. Obviously, the credit rating of the central bank's digital currency endorsed by the central bank is higher than that of the deposit currency of the commercial bank, which will crowd out the deposit of the commercial bank and may lead to "deposit move", thus affecting the loan delivery ability of the commercial bank. In addition, the rection of commercial banks' ability to absorb deposits will increase their dependence on the interbank market, raise capital prices, increase social financing costs, damage the real economy, and lead to "financial disintermediation". In order to maintain its lending capacity and financial stability, the central bank will have to subsidize commercial banks. In extreme cases, it will also subvert the existing financial system, leading to the "grand unification" of the central bank
to sum up, the "central bank agent delivery commercial institutions" double-layer delivery mode is not only suitable for China's national conditions, but also can make full use of existing resources and mobilize the enthusiasm of commercial banks. First of all, it does not change the relationship between creditor's rights and debt of currency in circulation. In order to ensure that the currency is not over issued, the agency needs to pay 100% of the reserve to the central bank. Therefore, the digital currency of the central bank held by the public is still the liability of the central bank, which is guaranteed by the credit of the central bank and has unlimited legal compensation. Secondly, if we do not change the existing money supply system and al account structure, there will be no competition for commercial banks' deposit currency, no increase in commercial banks' dependence on the interbank market, no impact on commercial banks' lending ability, and no "financial disintermediation" phenomenon. Thirdly, because it does not affect the existing monetary policy transmission mechanism, it will not strengthen the pro cyclical effect under the pressure environment, so it will not have a negative impact on the current mode of operation of the real economy. Finally, the model is more concive to the central bank to play the advantages of digital currency, save costs, improve the speed of money circulation, and improve the convenience and security of payment. In addition, e to the credit advantage of central bank endorsement, it is concive to restraining the public demand for private cryptocurrency and consolidating China's monetary sovereignty< Second, under the arrangement of the two-tier delivery system, the central bank's digital money should be released in a loosely coupled way and adhere to the centralized management mode
in order to maintain the attributes of the central bank's digital money and achieve the objectives of monetary policy and macro Prudential Management, the two-tier delivery system of the central bank's digital money should be different from the decentralized issuance mode of various tokens. First, because the central bank's digital currency is still the central bank's debt to the public, its relationship between creditor's rights and debt has not changed with the form of money, so it is still necessary to ensure the central bank's central position in the process of delivery. Second, we need to ensure and strengthen the central bank's macro Prudential and monetary policy control functions. Third, we should not change the al account system and maintain the original transmission mode of monetary policy. Fourth, in order to avoid the over issuance of money by the agency, it is necessary to have corresponding arrangements to realize the tracking and supervision of the central bank on the digital money supply
therefore, the central bank should adhere to the centralized delivery mode of digital money. However, the centralized delivery mode mentioned here is also different from the traditional electronic payment tools. The fund transfer of electronic payment instruments must be completed through the account, which is tightly coupled with the account. The digital currency of the central bank should be based on the loose coupling form of the account, so that the dependence of the transaction link on the account is greatly reced. In this way, it can not only be as easy to circulate as cash, but also realize controllable anonymity. Central bank digital currency holders can directly apply it to various scenarios, which is concive to the circulation and internationalization of RMB. In addition, if there is no anonymity of the third party, personal information and privacy will be disclosed; However, if the complete anonymity of the third party is allowed, it will encourage crimes, such as tax evasion, terrorist financing and money laundering. Therefore, in order to achieve a balance, it is necessary to achieve controllable anonymity and only disclose transaction data to the third party, the central bank. Under the loosely coupled account system, the agency can be required to transmit transaction data to the central bank asynchronously every day, which is not only convenient for the central bank to grasp the necessary data to ensure the realization of regulatory objectives such as prudent management and anti money laundering, but also can rece the system burden of commercial institutions< At present, M1 and M2 are based on commercial bank accounts, and have been electronic or digitized, so there is no need to use digital currency to digitize again. The inter-bank payment and clearing system (such as large and small payment system and online payment inter-bank clearing system) supporting M1 and M2 circulation, the intra-bank system of commercial banks and all kinds of network payment means of non bank payment institutions are running normally, constantly improving and upgrading, and becoming more efficient, which can meet the needs of China's economic development. Replacing M1 and M2 with central bank digital currency will not help to improve payment efficiency, but also cause huge waste of existing systems and resources. In contrast, the cost of issuing, printing, recycling and storage of existing banknotes and coins is high, the circulation system is multi-level, and it is inconvenient to carry, easy to be forged, anonymous and uncontrollable. There is a risk of being used for money laundering and other illegal and criminal activities, and the necessity of digitalization is increasing. In addition, non cash payment tools, such as traditional bank card and Internet payment, are based on account tight coupling mode, which can not fully meet the public's demand for easy-to-use and anonymous payment services, and can not completely replace M0. Especially in areas with poor account services and communication network coverage, people still rely on cash very much. The central bank digital currency maintains the properties and main characteristics of cash, meets the needs of portability and anonymity, and will be the best tool to replace cash
because the central bank's digital currency is a substitute for M0, it should not pay interest. This will not lead to "financial disintermediation", nor will it lead to inflation expectations. Accordingly, it will not have a big impact on the existing monetary system, financial system and the operation of the real economy
in the same way, since the central bank's digital currency is replaced by M0, it should also comply with all the existing regulations on cash management, anti money laundering and anti-terrorism financing. In order to cooperate with anti money laundering and other related work, relevant institutions can be required to report large amount and suspicious transactions of central bank's digital currency to the central bank. At the same time, in order to guide the central bank's digital currency to be used in small retail business scenarios, avoid the crowding out effect of deposits, and avoid the procyclical effect under arbitrage and pressure environment, it is necessary to set daily and annual cumulative trading limits, and stipulate large amount of scheled exchange. If necessary, we can also consider the implementation of hierarchical charges for the central bank's digital currency exchange. For small and low-frequency exchanges, we can not charge fees, but for large and high-frequency exchanges and transactions, we can charge higher fees to increase exchange costs and institutional friction. When the interest rate is below zero, this arrangement can also create conditions for the central bank to implement the negative interest rate policy< (4) the central bank should be cautious about loading smart contracts with digital currency.
according to the definition given by Nick Szabo, smart contracts are a set of commitments defined in digital form, including the agreements on which the contract participants can implement these commitments. Smart contracts are written into computer-readable code. Once the trigger condition is reached, it is automatically executed by the computer. It can load time, credit and other preconditions, and can also be applied to tax payment, anti-terrorism financing and other scenarios
however, as mentioned above, the central bank's digital currency is a substitute for M0 and has unlimited legal compensation, that is, it undertakes the functions of value scale, circulation means, payment means and value storage. The original cash does not carry any other social and administrative functions According to the regulations of the people's Republic of China on the administration of RMB, it is prohibited to damage RMB intentionally. Therefore, adding additional social or administrative functions to the cash may actually damage the RMB
in order to maintain the legal status of unlimited legal compensation, the digital currency of the central bank should not undertake other social and administrative functions besides the four functions of currency. In addition to the function of legal tender itself, the loading of smart contract will affect its legal compensation function, even make it fade into a valuable note, rece the degree of free use of China's central bank's digital currency, and also have a negative impact on the internationalization of RMB. It will also rece the speed of money circulation and affect the transmission of monetary policy and the central bank's performance of macro Prudential functions. At the same time, it may also infringe on citizens' right of privacy, which is not concive to the protection of indivial rights and interests.
9. GS, the centralized exchange, its security still needs to be studied
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