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Does digital currency influence the dominance of US dollar

Publish: 2021-05-14 02:14:21
1. The core value of CBDC can be summarized as four points: first, the original purpose is to let the central bank better manage money creation and supply, enhance the effectiveness of monetary policy transmission mechanism and better deal with the business cycle. Second, the construction of payment and clearing infrastructure based on blockchain related technologies can rece costs and increase efficiency. digital currency can greatly rece the cost of currency issuance, circulation, use and other links, and realize banknote free transactions, which is also in line with the current trend of rapid development of electronic payment. Third, it has given the central bank stronger control over the monetary system, such as KFC, anti money laundering, anti-terrorism financing, and some targeted policies. Before the launch of Libra, the central bank attached importance to CBDC mainly for the above three purposes. But now, the significance of CBDC in promoting the internationalization of RMB has become more important than ever. This is the fourth purpose of the central bank. Judging from the current progress of RMB internationalization, there are indeed many difficulties. One is the US led encirclement and interception, and the other is the turbulence in the stock and exchange markets. In order to break the encirclement led by the United States, realize the normal development of the stock exchange market and the foreign exchange market, and realize the internationalization of RMB, it is really a good way for the central bank to issue digital currency. On the 10th anniversary of RMB internationalization, RMB internationalization has made remarkable achievements. 13 international financial institutions around the world began to pay attention to China's bond market. In the tide of interest rate rection in developed countries, negative interest rate has become a conventional means, and China's bonds are very competitive in the world. As of the second quarter of 2019, 38 countries have signed currency swap agreements with China, with a total amount of 3.67 trillion yuan. The one belt, one road, which one belt, one road to push forward, is continuously creating demand for RMB internationalization, and the export of RMB has become an important means of "one belt and one road" internationalization of RMB. In addition, RMB is one of the most active currencies in the global foreign exchange market, and London has surpassed Hong Kong as the world's largest offshore RMB foreign exchange trading center. With the steady development of China's economy, RMB assets will continue to be favored by all countries in the world< One belt, one road or other friendly country, was also shared by the Central Bank of China when it issued the CBDC. It shared some of the mint rights with br />
CBDC. How to participate? Including the following two cases, let's take Kazakhstan as an example. The first is that Kazakhstan can issue RMB denominated Kazakh government bonds. The issuer is Kazakhstan, but the RMB denominated bonds are sovereign bonds for Kazakhstan, which can also be sold to the Central Bank of China in exchange for CBDC. The second is that Kazakhstan issues treasury bonds denominated in its own currency, which are issued by Kazakhstan and priced in its own currency. This method is the easiest for Kazakhstan, because this is their own national debt, which is sold to the Central Bank of China, which gives it CBDC. The similarities between the two lie in that they both sell treasury bonds to the Central Bank of China, but the issuers of treasury bonds are not the same, and the pricing currencies of treasury bonds are not the same, so the requirements for Kazakhstan are not the same. In theory, these ways can be used as a political tool to influence and regulate the relationship between the Chinese government and Kazakhstan<

4 digital currency will become the biggest magic weapon of RMB internationalization

China is now facing the biggest challenge, in terms of currency, in fact, the internationalization of RMB. The monetary settlement system based on US dollar has brought great problems to the decision-makers outside the US dollar. The best way to rece the status of US dollar is to replace us dollar with a global digital currency to end the dominant advantage of US dollar. The Chinese version of CBDC is likely to become the biggest magic weapon to promote the internationalization of RMB and end the hegemony of US dollar. The opportunity for RMB internationalization lies in the trend of de dollarization. Therefore, we need friendly countries other than US dollars to participate in China's digital currency. Taking the lead in the use of digital currency in block trading and financial settlement to bypass the restrictions on trading in US dollar will certainly realize the development of de dollarization and form a new currency trading system dominated by China and participated by many parties. So how to achieve it? In essence, it is to transfer benefits, so that non dollarized friendly countries can participate in the issuance process of CBDC, and even share the seigniorage of RMB. It is the most effective magic weapon to embody the spirit of democratization and benefit sharing of blockchain and bitcoin in the design of sovereign currency, which is also the most practical way to realize the internationalization of RMB.
2. Zero3 international settlement center adopts blockchain technology to complete cross-border payment through valuable digital assets euz. Compared with the traditional use of foreign exchange purchase and exchange between international banks, in 2018, ant financial services has actually tried to use blockchain technology in the field of international cross-border payment, so it is very good to use blockchain technology in Cross-border payment.
3. Not for the time being, not in the future
4.

For atoms: the number of electrons and protons is the number of elements. For example, h is element 1, which contains one electron and one proton

The neutron number should know the mass number. If you haven't learned this yet, the mass number can be simply regarded as the relative atomic mass, the number of neutrons = the relative atomic mass minus the number of protons. For example, if O is element 8, it has eight electrons and eight protons. Relative to the atomic mass of 16, the number of neutrons = 16-8 = 8

for ions, protons and neutrons are exactly the same as above, and electrons change, gain more and lose less. The method is similar

the number of electrons outside the nucleus = atomic number = proton number inside the nucleus = nuclear charge number (the number of electrons outside the nucleus of an ion = atomic number (sum) - charge number)

the maximum number of electrons held by each electron layer is 2n ^ 2 (n is the electron layer number). The number of electrons in the outermost layer is not more than 8 (when the k layer is the outermost layer, it is not more than 2). There are no more than 18 electrons in the second outer layer and 32 electrons in the last three layer

the extranuclear electrons are always arranged in the electron layer with the lowest energy first, and then from the inside to the outside, they are arranged in the L layer and then in the m layer. The above four laws are interrelated and cannot be understood in isolation

extended data:

neutrons exist in neutron stars as clusters (neutron stars are one of the few possible endpoints after supernova explosions e to gravitational collapse at the end of star evolution.) In the middle. The neutrons in the solar system mainly exist in all kinds of nuclei, and the neutrons in the elements are very rare β Decay is a change in which the neutron in the element releases an electron to become an element of the previous element sequence

Neutrons can be classified according to their velocities. High energy (high-speed) neutrons have the ability to ionize and penetrate deep into matter. Neutrons are the only ionizing radiation that can make other substances radioactive. This process is called "neutron excitation"“ "Neutron excitation" is widely used in the proction of radioactive materials in medical, academic and instrial fields

High energy neutrons can travel very long distances in air. Neutron radiation needs to be masked by hydrogen rich materials, such as concrete and water. Nuclear reactor is a common neutron source, and water is used as an effective neutron shield

arrangement rule:

1. The electrons are arranged in different layers from the nucleus to the nucleus, and the energy is from low to high

The maximum number of electrons in each layer is 2n2 (n is the number of electron layers)

There are no more than 8 electrons in the outermost layer (no more than 2 in the first layer), no more than 18 electrons in the second outer layer and no more than 32 electrons in the last three layers

In general, the electrons are always in the lowest energy layer, that is, the first layer, when the first layer is full, then the second layer, when the second layer is full, then the third layer

5.

Digital currency is a double-edged sword. On the one hand, the blockchain technology it relies on has been decentralized and can be used in other fields besides digital currency , which is one of the reasons why bitcoin is popular; On the other hand, if digital currency is widely used by the public as a kind of currency, it will have a huge impact on the effectiveness of monetary policy, financial infrastructure, financial market, financial stability and so on. Specific Wu Xiaoxia:

1. Impact on monetary policy

if digital currency is widely accepted and can play the role of currency, it will weaken the effectiveness of monetary policy and bring difficulties to policy-making

because digital currency issuers are usually unregulated third parties, money is created outside the banking system, and the amount of circulation depends entirely on the wishes of the issuers, which will lead to the instability of money supply. In addition, the authorities are unable to monitor the issuance and circulation of digital currency, which will lead to the inability to accurately judge the economic operation and bring trouble to policy-making, At the same time, it will weaken the effectiveness of policy transmission and implementation

2. Impact on financial infrastructure. The use of distributed ledgers also poses challenges to trading, clearing and settlement, as it promotes the disintermediation of traditional service providers in different markets and infrastructures. These changes may have potential impacts on market infrastructure other than retail payment systems, such as large payment systems, securities settlement systems or trading databases

3. The impact on financial intermediation and financial market in a broad sense. As a financial intermediary, banks perform the ties of acting supervisors and supervise borrowers on behalf of depositors

generally, banks also carry out liquidity and maturity conversion business to realize the financing from depositors to borrowers. If digital currency and distributed ledger are widely used, any subsequent disintermediation may have an impact on savings or credit evaluation mechanisms

4. The impact of security risks and financial stability

assuming that digital currency is recognized by the public, its use increases significantly and replaces legal currency to a certain extent, negative events such as network attacks on user terminals related to digital currency will lead to currency fluctuations, which will have an impact on the financial order and the real economy

in addition, the virtual currency based on blockchain technology is usually held by a few people at the beginning. For example, the first purchase of bitcoin in May 2010 was $25 pizza purchased by 10000 BTC, and the price of each bitcoin rose to $1200 in more than three years by the end of 2013

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extended materials

Amazon will launch digital currency project in Mexico. Amazon is recruiting software development managers for digital and emerging payments (DEP) to develop new payment procts that will enable customers to convert cash into digital currency

the digital and emerging payments sector intends to launch the proct in Mexico first. The follow-up will be extended to Brazil and India. It is reported that the digital currency project will completely focus on payment services in emerging markets

6. Yes, China's RMB has graally become an international currency, and China's international status has improved significantly.
7.

At present, the status of RMB is constantly rising. Many countries have begun to abandon the US dollar and use RMB to price oil, but it will not shake the petrodollar system. Although RMB can be used to price oil transactions now, it still needs a long way to go to become an international one and completely break the petrodollar system, It's going to take a long time. But it has no effect on digital currency, because many countries do not recognize digital currency. Now the world is mainly based on the currency of the Committee. The appreciation of RMB has a great impact on the domestic market, and even leads to inflation. After promotion, it is even less valuable. However, with the rise of RMB, Can let us the influence of RMB, can let all the people in the country on the mobile phone can exchange, this is very convenient{ RRR} in this case, cash will only be less and less, replaced by the rise of digital currency. But the rise of digital RMB will not affect the status of the United States now

8. In July 1944, representatives of 44 countries held a monetary and financial conference between the United Nations and its allies in "Bretton Woods Park" in New Hampshire. The conference adopted the final resolution of the UN monetary and financial agreement, the agreement of the International Monetary Fund and the agreement of the international bank for reconstruction and development, which are collectively known as the Bretton Woods Agreement
the Bretton Woods system is the sum of the rules, measures and corresponding organizational forms established by the agreement for the arrangements made by all countries on currency exchange, balance of payments adjustment, composition of international reserve assets, etc., aiming to provide a solid economic foundation after World War II. In February 1973, the U.S. dollar further devalued, and the world's major currencies were forced to implement the floating exchange rate system e to the impact of speculators. So far, the Bretton Woods system completely collapsed. After the collapse of the Bretton Woods system, the International Monetary Fund and the world bank, as important international organizations, continue to exist and play an important international role

the purpose is to establish a fixed exchange rate system linked to us dollar and gold, end the chaotic international financial order, and create favorable external conditions for the expansion of international trade and world economic growth; As a reserve currency and a means of international settlement, the US dollar makes up for the shortage of gold, improves the global purchasing power, and promotes international trade and transnational investment.
9.

On July 1, 1944, after three weeks of discussion, the conference led by the United States adopted the International Monetary Fund Agreement and the international bank for reconstruction and development agreement based on the white plan, and established the Bretton Woods system with the US dollar as the center

In order to maintain the consensus reached by the Bretton Woods system, two international financial institutions, the International Monetary Fund and the international bank for reconstruction and development, were established

it is not difficult to see from the name that the purpose of IMF is to maintain the stability of international exchange rate and provide short-term rescue loans to member countries with temporary financial difficulties. For example, if the Greek government is in financial difficulties, if it does not rescue, it will soon go bankrupt, and the IMF will help

WB was initially set up to revive Europe, but now it mainly provides long-term loans to developing countries, which is really very good. Low interest and interest free loans from the world bank are used in infrastructure construction in many areas of central and Western China, and the world bank also sends experts to provide technical guidance

The history has proved that the establishment of Bretton Woods system has formed a world monetary system with us dollar as the center, which is concive to the standardization and unification of post-war financial currency and plays a positive role in the recovery and reconstruction of post-war economy

while bringing benefits to the world, it is more beneficial to the United States: it makes the US dollar gain the status of world financial hegemony. If the situation changes, the United States is likely to break its promise and have adverse effects on the economies of other countries

The Bretton Woods system is concive to the globalization of the world economy, but it has its own natural defects: its operation is based on the premise of the stability of the U.S. economy and sufficient gold reserves. Once the U.S. economy fluctuates or declines, the system is bound to be unable to maintain

If the balance of payments of the United States keeps a surplus, there will be a shortage of US dollars; If the U.S. balance of payments deficit, there will be a U.S. disaster

10. Now RMB does not have the ability to challenge any hegemony. In SDR, the weight of US dollar is 41.73%, and that of RMB is 10.92%; As of the second quarter of 2017, US dollar reserves accounted for 63.79% of the total known currencies of foreign exchange reserves held by various countries, while RMB only accounted for 1.07%; As of November 2017, the US dollar market accounted for 39.30% of international payments, while the RMB market accounted for 1.75%
in the long run, RMB internationalization is in line with China's strategic interests and should be steadily promoted. Sooner or later, China will have an international currency in line with its economic status

there will be several trends. The oil settlement currency has been implemented, and the bilateral settlement is also being vigorously promoted. The position of RMB in the reserve currency will be increased, the link between RMB and gold trading will be strengthened, and the corresponding procts and trading mechanisms will be launched. The most important thing is the graal opening of the capital account, which will be related to the domestic economy and the next step of RMB internationalization (Shen Qi)
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