Shortcomings of digital currency
the application of blockchain in digital currency has been proved to be a feasible solution. At present, the mainstream digital currency in China basically uses blockchain technology. For example, bitcoin, Puyin, lightcoin, Ethereum classic, etc.
SDR basket is a special drawing right (SDR), also known as "paper gold". It is a Book Asset distributed by IMF according to the share subscribed by Member States, which can be used to repay IMF debt and make up the balance of payments deficit between member governments
When a member state has a balance of payments deficit, it can exchange foreign exchange with other Member States designated by IMF to repay the balance of payments deficit or the fund's loans, and also act as an international reserve like gold and freely convertible currency. Because it is a supplement to the original ordinary drawing right of the International Monetary Fund, it is called special drawing right. The significance of RMB joining SDR is as follows:1. At the same time, the RMB will become the fifth SDR basket currency alongside the US dollar, euro, British pound and Japanese yen
For China, RMB's entry into SDR is not only the IMF's recognition of RMB's internationalization process, but also China's commitment to continue to promote the financial reform including the opening of capital account The inclusion of RMB in SDR will be interpreted as IMF's official endorsement of RMB as a freely available currency, and it also marks that China's increasingly prominent importance in the international financial market has been recognized internationally, which will further promote China's domestic financial reform and the process of capital account opening 
the risk of RMB joining the SDR basket
1. From the perspective of interest rate,
after RMB joining the SDR basket, it requires RMB interest rate to be more market-oriented, which also means that the government's interest rate regulation space may be narrowed in the future
if the inflation pressure rises in the future, the tightening of monetary policy may cause commercial banks and other major financial institutions to raise interest rates and compete for funds, which may increase the debt cost of commercial banks and other financial institutions, and cause commercial banks to face operational difficulties. We can not rule out that some small commercial banks are facing the risk of unsustainable operation
From the perspective of exchange rate,
after RMB is included in the SDR basket, its market-oriented reform may be further accelerated, but whether the RMB exchange rate is close to the equilibrium level remains to be seen. If the market-oriented reform of RMB exchange rate needs to be further promoted in order to maintain its competitiveness in the SDR basket in the future, then the RMB exchange rate may have the risk of uncertainty
From the perspective of systemic risk,
may lead to more large-scale cross-border capital flow, and then increase the systemic risk by affecting the stock market, property market and other channels. If the domestic and international environment fluctuates greatly in the future, the cross-border flow of funds in the stock market or real estate market may accelerate, which will have a negative impact on the financial market and macro economy
< H2 > reference sources:Network - Special Drawing Rights
Network - RMB's participation in SDR
People's Network - the positive significance and potential challenges of RMB's participation in SDR
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in addition to the three types of institutions such as foreign central banks that have just been approved to enter, there are many foreign institutions that want to participate in China's bond market. After RMB's entry into SDR, whether it is for foreign investment or for foreign investors to invest in domestic stocks, funds, P2P and other financial channels, it can make personal investment, and the market will become more open, free and convenient
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after the entry of RMB into SDR, the domestic financial market will face a large influx of foreign capital, and the Internet financial market will be further liberalized. After all, RMB is a high interest variety. Once the door of China's bond market is opened, this kind of overseas high interest rate investment procts, especially domestic P2P procts, will be very attractive to cross-border investors
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the entry of RMB into SDR will promote the internationalization of RMB capital market and bond market procts, and improve China's financial market environment< br />
Special Drawing Right (SDR), also known as & quot; Paper gold & quot Paper gold, which was first issued in 1969, is a Book Asset distributed by the International Monetary Fund (IMF) according to the shares subscribed by Member States. It can be used to repay IMF debts and make up the balance of payments deficit between member governments. Its value is currently determined by a basket of reserve currencies consisting of US dollar, euro, RMB, Japanese yen and British pound. When a member state has a balance of payments deficit, it can exchange foreign exchange with other Member States designated by IMF to repay the balance of payments deficit or IMF loans. It can also act as an international reserve like gold and freely convertible currency. Because it is a supplement to the original ordinary drawing right of the International Monetary Fund, it is called special drawing right< br />
according to the information provided by the financial planning and operation Department of the International Monetary Fund (IMF), SDR is a reserve asset and accounting unit created by the International Monetary Fund in 1969, also known as "paper gold". It was originally created to support the Bretton Woods system, and later called "special drawing rights". Each SDR unit was initially defined as the price of 0.888671 grams of pure gold, which was also the value of $1 at that time
with the collapse of the Bretton Woods system, the special drawing right (SDR) has now become the unit of valuation of a "basket" of currencies. At first, the SDR was composed of 15 currencies. After years of adjustment, it is now integrated into a "basket" unit in four currencies: US dollar, euro, Japanese yen and British pound
as a right to use funds allocated by the IMF to Member States, China has a special drawing rights quota of 6.369.2 billion, which is the eighth member with the largest share, while the United States has a special drawing rights quota of 37.149.3 billion
in the event of a balance of payments deficit, the SDR owned by a member state can be used to exchange foreign exchange with other Member States designated by IMF to repay the balance of payments deficit or IMF loans. SDRs can also be used as international reserves like gold and freely convertible currencies. When the SDR is used as the unified unit of valuation, the conversion ratio between the currencies of IMF member countries and the SDR also reflects the exchange rate of each member country's currency. At the same time, it can better reflect the comprehensive exchange rate of a country's currency
SDR involves international settlement
as the unit of account of the International Monetary Fund, SDR is not a real currency. When it is used, it must be changed into other currencies first, and can not be directly used for trade or non trade payment. However, in many fields of international settlement, we can see SDR as a unit of international settlement< In other words, if the conversion ratio of RMB to SDR changes, it will affect the settlement of various international businesses related to China
for example, many Chinese enterprises use SDR as the pricing standard in terms of international long-distance telephone settlement, international shipping, international postal rates, compensation, etc
the most common is that the international roaming fees of China Mobile and China Unicom need to be settled by SDR. Both companies stipulate that for roaming users, the operator in the visited region or country will be charged according to the charging currency unit used by the operator in the visited region, which will be converted into special drawing rights at a certain exchange rate, and then converted into RMB by the special drawing rights< According to international practice, the exchange rate is subject to the exchange rate announced by the International Monetary Fund on the 23rd of last month when the call cost occurred; If the International Monetary Fund does not publish the exchange rate of the day in the event of a US public holiday, the exchange rate of the working day before the 23rd day shall prevail
people from the news center of China Unicom also said that China Unicom adopted the same charging method. For example, if a mobile phone user of China Unicom roams to Mobitel company in Bulgaria, the per minute communication fee for dialing back to China is 1.955sdr, and the RMB fee is calculated according to the exchange rate provided by the International Monetary Fund
in terms of aviation, the Convention for the unification of certain rules of international air transport also stipulates that in case of an accident, the airline shall make a compensation limit of 100000 SDR for each passenger< In addition, the Universal Postal Convention also stipulates that the standard currency of the Universal Postal Union is the special drawing right
in international mail and parcel delivery, the charges for receiving and sending mail, calculating the charges for returning and resending mail, and the compensation for mail are uniformly stipulated through the special drawing rights, and the national currency of each member country is calculated. At the same time, SDR is also used as the bookkeeping unit of account settlement among postal administrations. When making payment, the amount of SDR accounts is converted into the amount of payment currency and payment proceres are handled
the conversion ratio of SDR will not change frequently, but will be fixed for a long time“ At present, the ratio of SDR to RMB stipulated by the State General Post Office is 10.0539. " A staff member of Shanghai international express package company said
the reason why many international conventions use SDR as the standard currency is that the value of SDR is composed of four freely convertible currencies, which account for the largest proportion in international trade. SDR has strong stability and less risk to other Member States than using the currency of any single member state as the standard currency
SDR (Software Definition Radio), "Software Defined Radio"
Software Defined Radio (SDR) is a radio broadcast communication technology, which is based on software defined wireless communication protocol rather than hard wire. In other words, the frequency band, air interface protocol and function can be upgraded by software download and update without completely replacing the hardware. SDR provides an effective and secure solution to the problem of building multi-mode, multi frequency and multi-function wireless communication equipment
SDR can be reprogrammed or reconfigured so that different waveforms and protocols can be used by dynamically loading new waveforms and protocols. These waveforms and protocols contain various parts, including molation technology, security and performance characteristics defined in software as a part of the waveform itself.