Central bank governor's view on digital currency

1. What are the current views of central banks on digital currency? Money is money. It's inflated now

2. The central bank is about to issue its own digital currency CBDC

3.

according to foreign media reports, with the growing popularity of bitcoin, central bank governors around the world have also expressed their views on this digital currency

Federal Reserve Bank of the United States

in December last year, at the monetary policy meeting of the Federal Reserve Bank of the United States, Janet Yellen, chairman of the Federal Reserve Board, was asked what she thought of bitcoin

According to Yellen, this kind of digital currency is a "highly speculative asset" and "cannot be legal tender". She added that it "plays a negligible role in the payment system" and that it "is not a stable store of value."

"the Federal Reserve Bank will not make any policy on bitcoin. Instead, we will only ensure that the banking institutions we supervise pay close attention to digital currency and properly manage their interaction with traders in the market. Moreover, we will monitor whether these banking institutions have fulfilled their responsibilities to combat money laundering and ensure the safety of banks. " Yellen said

at the end of November last year, Jerome Powell, who will replace Yellen as chairman of the Federal Reserve in February this year, also expressed his views on cryptocurrency. Cryptocurrencies "don't matter now" because "they're not big enough," he said

According to Powell, the financial risk brought by digital currency to the financial market is minimal“ They're not big enough, they don't matter now. " He said

European Central Bank

in October last year, Mario Draghi, President of the European Central Bank, said that cryptocurrency was not "mature" enough for the central bank to regulate management

"for anything new, people are always full of expectations, but also feel very uncertain. Now, as far as bitcoin and other cryptocurrencies are concerned, we don't think they are mature enough for us to consider standardized management. " He said

Draghi pointed out that tools like bitcoin have both advantages and disadvantages, and we need to weigh them carefully

"a lesson of the great financial crisis is financial innovation. As far as bitcoin is concerned, it is a financial and technological innovation. We should pay close attention to its potential risks while paying attention to it. " He said

Bank of Canada

in December last year, Stephen poloz, President of the Bank of Canada, also spent some time discussing cryptocurrency. He claims that buying digital currency is a gamble, not an investment

"perhaps no one can say clearly what their real value is. One can at most say that buying digital currency is buying risk. This makes it closer to gambling than investment. " "For people who want to buy cryptocurrency, what I want to say is that you should read the collateral to make sure you know what you're investing in," boloz said

According to boloz, the demand for digital currency will increase in the future. He added that the Central Bank of Canada was studying whether to issue its own digital currency

"bank staff are studying the conditions under which the central bank is more suitable to issue its own digital currency for retail transactions." He said

Reserve Bank of Australia

in December last year, Reserve Bank of Australia President Philip Lowe talked about bitcoin in a speech. He pointed out that this kind of digital currency will not be used in daily payment activities, and it can not be accepted so soon

According to Lowe, the reason is that the price of bitcoin is extremely unstable, the number of payments that can be processed at the same time is limited, the transaction and electricity costs are too high, and the management is too difficult

moreover, when bitcoin is only used as a payment tool, it "is more likely to attract those who want to trade in black or illegal economic activities."

Bank of Japan

at the end of 2017, Haruhiko Kuroda, President of Bank of Japan, said the price fluctuation of bitcoin was "extremely abnormal"

when asked if there will be a bubble in bitcoin, he replied, "I may not be qualified to evaluate it, but if you look at its trend, you will see that its price fluctuation is very abnormal. If you want to ask whether bitcoin has the same function as money, that is, as a payment or settlement tool, then my answer is No

investment should be cautious and private letter from mining machinery is needed

4. No matter from personal point of view or from Yi Gang's point of view, regarding digital monetary policy, from the standpoint of the central bank, it has revealed:
first, to maintain the continuity of monetary policy, not to release water, not to shrink abruptly
Second, it will not change the fact that bitcoin is not legally recognized
thirdly, strengthen supervision, pay attention to safety and maintain stable and neutral development
Fourth, to serve the development of the real economy
considering the consistent policy of the Chinese government on digital currency, maintaining stability and continuity should be the current orientation and trend< In addition, although Yi Gang pointed out at the Boao Forum for Asia that he would take a strict attitude towards digital currency, it does not mean that he will stop studying digital currency. At present, the central bank is studying how digital currency can serve the real economy in a better form, develop safely in the best form and avoid possible negative effects, Let digital currency serve the economy better
in spite of stricter supervision, it is still believed that the central bank will adopt a combination of easing and blocking measures for the development of digital currency in the future.

5. The issue of digital currency has many benefits and is imperative. According to the central bank, digital money and paper money will coexist for a long time to come. When people go to the bank to withdraw money, they can not only withdraw cash directly, but also exchange it into digital currency. In Xiaobian's opinion, the establishment and issuance of digital currency system can not only make people's transactions more convenient and safe, but also graally weaken the proportion of paper money in the real circulation, which will also have a positive impact on the electronic disk of postal money card
when people are used to digital currency, paper money will graally withdraw from the circulation market and enter the collection field. In the new environment of payment and circulation, the traditional paper money will become a symbol of an era and a memory of people. The paper money that used to circulate in the market will also become a kind of cultural and artistic investment goods, active on the electronic disk of the post money card. And those earlier and even rarer coins will also stimulate their prices to rise in this situation. It can be seen that the central bank's graal promotion of digital currency will have a profound impact on people's living habits and investment and financial management, which is worth looking forward to Sohu)
however, digital currency does not have to be used for payment. Some domestic application-oriented digital currencies have begun to find another shortcut and come out with a different truth. For example, coin Ying China crowdfunding project token; Puyin group launched the tea based digital currency Puyin.

6. At the Boao Forum for Asia held in April this year, Zhou Xiaochuan, governor of the central bank, said that since digital currency is not the currency initiated and approved by the central bank, it is impossible to ban it. Digital currency belongs to digital assets, which can be freely traded between indivials. Therefore, digital currency is not MLM, not capital disk, but a kind of financial investment

7. Generally speaking, DCEP is the "digital currency with value characteristics" issued by the state. It can completely replace the market banknotes and has the same functions and attributes as banknotes. The release of DCEP redefines what digital currency represents. In the past, bitcoin, Ethereum and other currencies also had multiple nicknames such as digital currency or cryptocurrency. Now digital currency needs to be removed from these nicknames
in terms of positioning, the central bank's digital currency DCEP is not simply the digitization of banknotes, but to replace M0 (banknotes and coins) and change the form of the base currency. M0 refers to the cash in circulation, that is, the sum of the cash on hand of various units outside the banking system and the cash held by residents. The digitalization of banknotes generally refers to online replacement of lines, such as Alipay and WeChat, which all belong to online payment. However, both of them need to bind bank cards to pay. DCEP does not have this restriction, that is to say, when using DCEP for payment, there is no need to bind any bank account
the name of digital currency is easy to associate with cryptocurrencies such as bitcoin, but there is a fundamental difference between DCEP and them: DCEP is centralized while bitcoin is decentralized
to be exact, DCEP is a kind of sovereign credit currency, while the latter two are the procts of the idea of "currency non nationalization". The paper money itself has no value. The reason why it can perform the function of currency is that it is supported by the national credit and has the nature of legal compensation and compulsion. However, cryptocurrency such as bitcoin is a kind of private currency in essence and has no solid credit foundation. Therefore, any cryptocurrency with its own mining algorithm, following P2P protocol, limited amount, reaching a certain degree of consensus and decentralization can be a substitute for bitcoin
comparatively speaking, if there is a substitute for DCEP, it can only be other forms of RMB, such as banknotes and coins. That is to say, the digital currency DCEP issued by the central bank is still the debt of the central bank to the public, and this relationship between creditor's rights and debt will not change with the change of currency form.

8. It seems that there is no other way to play, like bitcoin and so on, all use mining machine

9. The name of research and development used by the central bank is DCEP, which is actually electronic payment. What is paid is digital, not paper money. Digital money also has monetary properties. The study of digital currency is not to realize the application of a certain technical solution, but to pursue the convenience and low cost of retail payment system, as well as security and privacy protection
at present, there are many comments on digital currency, criticizing that digital currency is not applied in retail payment, but in virtual asset trading, which is not in line with the direction of our financial assets serving the real economy. Therefore, we need not be too anxious in this regard, steady and orderly research and development, focusing on serving the real economy, recing costs and preventing excessive speculation
at present, bitcoin, Ethereum and wikilink, which are popular in the market, are actually not liked by the central bank and are highly speculative.