Reasons for the rise of digital currency in 2017
Why does the central bank issue digital currency? There may be the following reasons:
1. It helps to lower the threshold of financial services and better promote economic development
recently, the State Bureau of statistics released the relevant economic data in 2015: GDP growth in 2015 was 6.9%, a new low since 2009. Among them, the contribution rate of financial instry to GDP was the highest, with a year-on-year increase of 15.9%; In the first quarter, the contribution of added value of financial services to GDP increased by 20%. Before, for example, from 2012 to 2014, the contribution of financial services instry to real GDP growth was less than 10%, which shows that in the case of economic downturn and the contribution rate of real estate instry to GDP was only 3.8%, the financial instry has become an important support for China's economic growth
in order to further promote the development of finance, on January 15, the State Council issued the development plan for promoting Inclusive Finance (2016-2020), which proposed to "actively guide all kinds of inclusive financial service providers to rece financial transaction costs and expand the breadth and depth of inclusive financial services by means of Internet and other modern information technology.". The digital currency based on blockchain technology has the characteristics of convenience, quickness and low cost. The issuance of digital currency helps to build a new financial infrastructure, further improve the payment system, improve the efficiency of payment and clearing, help Inclusive Finance, and promote economic upgrading
2. Help to rece money laundering, tax evasion and other illegal activities
"digital currency" is convenient for cross-border circulation, and has the characteristics of easy use, anonymity and instantaneity. The current "digital currency", such as bitcoin, can be purchased and traded anonymously through the third-party Internet trading platform, which is more hidden and difficult to be found, so it is often used to launder money
in addition, at present, there are many internal accounts in the domestic financial structure, which are very scattered and lack of a unified national account, so it is impossible to supervise the specific flow of each sum of money or the process of each transaction, giving opportunities for tax evasion, corruption and money laundering
in the future, with the application of blockchain technology, the issuance of digital currency will help to enhance the central bank's control over money supply and circulation, better regulate and supervise digital currency, improve the convenience and transparency of economic transactions, and rece money laundering, tax evasion and other criminal acts
It can better rece the cost of currency issuance and circulation. For example, the proction of RMB requires raw materials (paper), machinery, labor costs, etc. At the same time, as a special commodity, the proction, circulation and recycling of RMB need to invest huge human, material and financial resources to ensure safety. In order to better anti-counterfeiting, we need to constantly update the printing technology. Although digital currency also has the cost of anti-counterfeiting, compared with paper money, it is more convenient to issue and circulate, which can rece the high cost of traditional paper money issuance and circulation, and also better serve our virtual economyin addition, foreign countries are increasingly accepting digital currency. For example, California in the United States has recognized the legalization of digital currency such as bitcoin. Russian President Vladimir Putin thinks that it is possible to use digital currency as a unit of account. The Bank of England has also considered issuing digital currency, which has laid a good foundation for the circulation of digital currency
is because of the rising price.
the reason for the collapse of digital currency is that the valuation is too high and the rise is too large. Digital currency itself does not proce any profit. The rise is basically speculation, which is easy to cause panic selling and collapse with the continuous development of economy at any time, science and technology has brought us a lot of changes, and these emerging instries have attracted many people's attention. If we grasp the opportunities, the emerging instries are completely likely to change our destiny. The main reason for the collapse of digital currency is that the rise of digital currency is too large. Digital currency itself does not proce any profit. A thing that does not proce any profit will rise tens of times or tens of thousands of times. This is completely speculation. Anything that goes up is a risk. At this time, a little panic will lead to selling. This is also the reason for the collapse of digital currency
I think it's normal for digital currency to collapse, because a commodity has a huge short-term rise, and the commodity can't generate profits. The key is that digital currency has no reference, and the rise has no fundamental support. It will certainly collapse in case of panic. I think it's very normal. This is speculation, and speculation will certainly have risks, It's just as expected