The difference between digital currency and credit currency

1. Currency: in essence, it is a contract between the owner and the market about the right of exchange, and it is essentially an agreement between the owners. The essence of money contract determines that money can have different forms, such as general equivalent, precious metal money, paper money, electronic money and so on. Its basic function is the measure of value and the means of circulation—— Extracted from the Internet

fiat money: it means that it does not represent real goods or goods, and the issuer has not cashed the currency into physical obligation; A currency that becomes legal currency only by government decrees. The value of fiat money comes from the owner's belief that money will maintain its purchasing power in the future. Money itself has no intrinsic value, that is to say, when the paper money comes into being, legal tender is essentially the negotiable paper money stipulated by law

the legal currency of the people's Republic of China is RMB, and the people's Bank of China is the national authority in charge of the management of RMB, which is responsible for the design, printing and issuance of RMB—— From the Internet

e-money: in fact, it is the electronization of legal money, including our common bank card, online banking, e-cash, etc; There are also third party payments developed in recent years, such as Alipay and WeChat payment. No matter what the form of these electronic money is and through which institutions it circulates, its original source is the legal money issued by the central bank

virtual currency: virtual currency refers to non real currency, and its existing state is intangible. The most important difference between virtual currency and electronic currency in narrow sense is the difference of issuers. Virtual currency is the electronization of illegal currency, and its original issuer is not the central bank. For example, game currency, q-coin, and ticket counting are mainly limited to circulation in a specific virtual environment

digital currency: digital currency which applies the latest digital network technologies such as blockchain, has the characteristics of Distributed Accounting, unique encryption technology, decentralized settlement, etc. Of course, digital tools with these characteristics must be supported by national credit if they want to become sovereign currency or legal tender

therefore, digital currency must be currency; In today's social system, money must also be sovereign money or legal tender. Secondly, digital currency must have the basic attributes and main functions of currency.

2. Currency digitalization is like WeChat Alipay, and bankcard pays
1. digital currency facing two risks. The first is the technical level. Digital currency relies on blockchain technology and a system, which will make it suffer from security impact, such as hacker attacks on computer systems. We have seen many practical problems in this process< Another risk of digital currency is credit risk. Because there are middlemen in digital currency transactions, these middlemen are different from real organizations. In reality, organizations can be seen and felt, but the middlemen of digital currency are on the Internet, so the risk is greater
3. Digital currency has the characteristics of anonymity, quickness and irrevocability. In addition, bitcoin and other digital currencies have high circulation in the world, so many criminals use digital currency as a new money laundering channel. Moreover, there are many different ways to realize money laundering through digital currency. Generally speaking, the probability of new money laundering being found and investigated is lower than before. Many countries have no effective means and technology to combat money laundering through digital currency. These factors lead to criminals prefer this way of money laundering
investment is risky and business should be cautious

3.

1. Application of different

digital currency: fast, economic and safe payment and settlement; Bill finance and supply chain finance; The real right of collateral is digitalized

e-money: the seller sends the buyer's payment instructions to the seller's acquiring bank through the payment gateway; The acquiring bank obtains the authorization from the issuing bank through the bank card network, and sends the authorization information back to the seller through the payment gateway; After obtaining the authorization, the Seller shall send the buyer the shopping completion information. If payment acquisition and payment authorization cannot be completed at the same time, the seller should send payment acquisition request to the acquiring bank through the payment gateway, and transfer the transaction funds from the buyer to the seller's account. The final inter-bank settlement is completed by the payment system between banks

2. Different characteristics

digital currency is characterized by low transaction cost, fast transaction speed and high anonymity

e-currency is characterized by anonymity, saving transaction cost, saving transmission cost, small holding risk, flexible and convenient payment, anti-counterfeiting and anti repetition, and non traceability

Digital currency can be divided into three categories: completely closed, unrelated to the real economy and only used in specific virtual communities, such as world of warcraft gold; It can be purchased in real currency but not converted back to real currency, and can be used to purchase virtual goods and services, such as Facebook credit; It can exchange and redeem with real currency according to a certain ratio. It can purchase both virtual goods and services and real goods and services, such as bitcoin

e-money: e-cash based on the Internet environment and keeping the binary data representing the value of money in the hard disk of the computer terminal; An electronic wallet that keeps the value of money in an IC card and can be circulated out of the bank payment system

4. Electronic money, like what Alipay is, is an electronic currency transaction.
digital currency, bitcoin? There is no real value.

5.

Do you mean there is no essential difference between digital currency and the existing monetary system? I don't know where to draw this conclusion. At present, the general digital currency mainly includes bitcoin, Ethereum, reborn, Leyte and other virtual currencies. These virtual currencies are very different from the existing monetary system! For example:

1. issuers: the issuers of existing legal tender are national government agencies, generally the central bank. Bitcoin and other digital currencies are issued according to the program encryption algorithm. If we want to say that the issuing subject, even one person can issue them. There is no credibility or coercion

2. credibility. The existing monetary system, that is, legal tender, has the endorsement of national credit, which has more credibility. Bitcoin and other digital currencies rely on algorithms, which are often issued by a community or even indivials, with weak credibility

3. mandatory. The existing monetary system, namely legal tender, is issued by the state and circulates in a country or region according to law. Digital currencies, such as bitcoin, do not have the power to enforce the law

4. volatility. In the current monetary system, there are exchange rate fluctuations in various legal currencies, but they are basically in a relatively stable state. As for bitcoin and other digital currencies, you can look at the market of digital currencies on investing. It can be seen that the price difference of bitcoin even one day is more than 10%, which is obviously unstable

   

6. The purpose of the invention of bitcoin is to replace paper money and achieve absolute fairness in the lending process
it's like an account book. We can record all our loans on it. Anyone can write on it, but how can we ensure that others don't Scribble
you will want to sign at the back, but someone will fake your signature. So we need to use electronic signature, that is, each account will generate a key, which only you know, and then confirm that the signature is your own through the public key
the above is only a safe way of lending, but it still needs a website to act as a bank, so the website can modify the amount of lending at will, and there is no law to restrict it
therefore, it is necessary to decentralize, that is, to publish one's own account and let everyone share it, so that the opposite side will not cheat. But how do you make sure people don't tamper with your bills
first of all, an account book must be divided into one page, that is, blockchain. According to the content of the blockchain, a hash function (a bit like a key, but with different functions) will be generated. The hash function is a one-way function and can't be pushed backward, so you can only rely on guessing to decipher it. The amount of enumeration needed to decipher a password is called workload. Then the computer will stamp the proof of workload on your bill, and the proof of workload means there is no mistake. So how can you convince others that you're not lying
this requires credibility. The measure of credibility is workload. The bill with heavy workload has more credibility. The workload here does not refer to the amount of calculation, but refers to the number of bills, that is, the number of blockchains. The more repeated the same account is received, the stronger the credibility is. Because others will sort out the accounts they receive, and then re publish them, which is an infinite cycle process. This prevents people from cheating by not publishing their bills
every time a blockchain is released, it will be rewarded, that is, "mining". But in order to prevent the unlimited expansion of bitcoin, bitcoin will dig less and less, that is, the rewards will be less and less. Therefore, players want to increase the release volume of blockchain by paying others a reward (service charge) at their own expense, and at the same time form its monetary function
furthermore, the total number of bitcoin is unchanged, but more and more people use it, so it is more and more difficult to dig, which is why many people have been complaining about the mine disaster
in my opinion, bitcoin is not so much a currency as a game. In short, it means that you pay more for mining, and the more you dig, the more you win.

7. China's legal digital currency refers to digital RMB, which is issued by the people's Bank of China in the form of digital legal currency. It is operated by designated operating institutions and exchanged to the public. Based on the broad account system, it supports the loose coupling function of bank accounts, and has the same price as banknotes and coins. It has value characteristics and legal compensation, and supports controllable anonymity. There are two key points in the concept of digital RMB. One is that digital RMB is legal tender in digital form; Another point is that it is equivalent to banknotes and coins. Digital RMB is mainly positioned at M0, that is, banknotes and coins in circulation
the central bank's digital currency has national credit and is equivalent to legal currency. Its functional attributes are exactly the same as those of traditional paper currency, but it is in digital form. Digital currency is concive to recing transaction costs, improving financial efficiency, and preventing money laundering and other illegal transactions

warm tips: the above explanation is for reference only
response time: January 6, 2021. Please refer to the official website of Ping An Bank for the latest business changes
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8. E-money is an electronic payment method of real money, which can normally purchase, transfer and withdraw cash; Virtual currency is a kind of currency simulated by a certain conversion relationship, which can not be used for general shopping and direct cash withdrawal. Different concepts