Functions of credit currency and digital currency

1. The people's Bank of China is trying out digital currency, which can perform five functions of currency, including value measure, circulation means, payment means, storage means and the function of world currency

2. 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

3. Modern credit currency is freely convertible in the world and has various functions of currency
the main functions of money include three aspects: value scale, transaction medium and wealth storage< Compared with metal money, modern credit money has some changes and development in form, use and mode:
form change: physical money → metal money → credit money
mode change: personal hoard → escrow → deposit in bank
purpose change: simply get rich → accumulate capital and increase consumption

4. Credit money is a kind of currency which is stipulated by national laws and is not based on any precious metal and plays an independent monetary function. At present, the currency issued by all countries in the world is basically credit currency. Credit currency is a credit circulation tool provided by banks. Its own value is far lower than its monetary value, and different from the substitute currency, it is completely decoupled from precious metals and no longer directly represents any precious metals. In the 1930s, there was a worldwide economic crisis, which caused economic panic and financial chaos, forced the major capitalist countries to break away from the gold standard and the silver standard, and the paper money issued by the state could not be exchanged for metal money. Therefore, credit money came into being. Nowadays, almost all countries in the world adopt this form of currency.

5. Modern credit currency is freely convertible in the world and has various functions of currency
the main functions of money include three aspects: value scale, transaction medium and wealth storage< Compared with metal money, modern credit money has some changes and development in form, use and mode:
form change: physical money → metal money → credit money
mode change: personal hoard → escrow → deposit in bank
purpose change: simply get rich → accumulate capital and increase consumption

6. Credit money is proced by means of currency circulation
the typical credit currency mainly includes credit card. Paper money, checks, etc

7. Functions of circulation means

8. (1) First of all, money is the general equivalent acting as the medium of exchange, and the function of value scale is the most basic function of money. Unlike credit card, it is not an equivalent and has no role of value scale, but a means of value transfer and a carrier of money< Secondly, as a means of circulation, money and goods are constantly exchanged between buyers and sellers, while credit card is always subordinate to one owner. When it completes commodity transaction as a medium, value is transferred, but credit card is not. What it media is still the exchange of money and goods

(3) thirdly, credit card is an advanced payment tool, which is the expansion and extension of monetary payment means. It breaks through the limitation of currency, can complete transactions for its holders in one place or several places, and can pay money in large or small amount within the bank credit line in exchange for the goods and services needed by cardholders. When serving the same cardholder, it greatly expands the means of payment in time and space< (4) finally, the layout of credit card has storage means. When it serves customers, it only performs the function of a savings passbook< (5) it will not become a world currency. Although credit card breaks the limitation of national boundaries and is widely used in the world, because it does not have the function of value scale, what it transfers is still currency, and it is still a payment tool when currency performs the function of world currency

adopted.