Disadvantages of currency digitization

1. Legal risks faced by digital currency: (1) at the macro level, there are legal risks, systematic risks and consumer protection. At present, the legislative problems of e-commerce and e-payment have not been solved, the concept of e-currency and related provisions need to be clarified, and many laws and regulations have not been followed up. Secondly, there is a systemic risk caused by the collapse of a single issuing institution. If a certain issuing institution loses confidence in e-money e to its poor management, other e-money issuing institutions will also face run risk. Moreover, in the absence of standardized supervision, it is difficult for the public to effectively identify the qualification and credit level of issuers. How to effectively prompt risks and protect the rights and interests of the public has become a difficult problem. In addition, the concealment, rapidity and cross-border nature of Internet payment make e-money an inevitable money laundering tool for criminals 2 At the micro level, there are technical risks and credit risks in the main body of e-money issuance. The issuers of e-money in China include banks, non bank financial institutions, Internet enterprises and other enterprises. Due to the weak financial professional foundation of some issuers, especially the lack of mandatory technical security standards in China, there are serious management loopholes and security risks in e-money issuers. System software or hardware failures will affect the availability of e-money. Secondly, the unreasonable structure of assets and liabilities and high concentration of investment will lead to the lack of liquidity and the risk of default. In addition, the payment and circulation of e-money rely heavily on all kinds of networks, and there are all kinds of operational risks, such as deliberate embezzlement of other people's accounts, internal crimes of issuing institutions and malicious intrusion of hackers, which will damage the interests of e-money holders. Bitcoin, Ruitai and other digital currencies are suitable.

2. Digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy
digital currency is a kind of unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form
according to the notice on preventing the financing risk of token issuance, there is no approved digital currency trading platform in China. According to China's digital currency regulatory framework, investors have the freedom to participate in digital currency transactions at their own risk

warm tips: the above information is for reference only. Before investing, it is recommended that you first understand the risks existing in the project, and understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
response time: December 11, 2020. Please refer to the official website of Ping An Bank for the latest business changes
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3. Digital currency does not worry about counterfeit money. If it is paper money, it worries about counterfeit money. I don't worry. I didn't take any money with me.

4.

Advantages and disadvantages of e-money

advantages:

1, convenience

2, security

3, general

4, increasing social benefits

disadvantages:

1, strong support from a third party

2, new risks

3, limited scope of use

e-money is based on electronic computer technology for storage, payment and circulation; It can be widely used in the fields of proction, exchange, distribution and consumption; Set financial savings, credit and non cash settlement and other functions as one; E-money is easy to use, safe, fast and reliable; At present, the use of e-money usually takes bank card (magnetic card, smart card) as the media

extended data

e-cash exists in the form of digital information and circulates through the communication network. In its life cycle, e-cash goes through three processes: withdrawal, payment and deposit, involving users, businesses and banks

the basic circulation mode of e-cash: the user and the bank execute the withdrawal agreement to withdraw e-cash from the bank, the user and the merchant execute the payment agreement to pay e-cash, and the merchant and the bank execute the deposit agreement to deposit the e-cash obtained from the transaction into the bank

source of reference: Internet - e-cash

5. Similar to Alipay and WeChat pay, no physical bills, you will spend faster, because spend money without shadow, no trace, finally the money became a figure, let people become no basic concept of money.

7. The digitization of RMB will not change the disadvantages of international settlement. The digitization of RMB will only make the circulation of domestic currency faster and more convenient