Is five element currency the future digital currency

1. This is not convertible. China does not support digital currency.

2. Let's first explain digital currency. The real digital currency is issued by the state, based on the national credit, and stored in the form of electronic data. This is the national legal currency that can be circulated. So far, no country has issued digital currency, so has China. Therefore, anyone claiming to be a digital currency issued by the state is a fraud. The function of legal digital currency is the same as that of paper currency. So there is no concept of investment. Just imagine, would you spend 100 yuan to buy a ten yuan RMB? bitcoin is still a virtual currency, not a real currency. Bitcoin is an encryption algorithm based on the blockchain, and the calculation results are obtained. The biggest characteristics are decentralization, uniqueness and finiteness. Because of these characteristics, it is impossible for a country to use bitcoin as legal tender. So I have no objection to using bitcoin as a target of speculation. But if bitcoin is promoted as a digital "currency", I think it is suspected of cheating, because it does not have the characteristics of national legal tender. Some people in the world are willing to accept bitcoin transaction. I think it is actually a "barter" transaction, not a real currency transaction. At present, bitnet exchange can provide the most trading pairs, and investors can participate in leveraged trading and perpetual contract trading.

3. Recently, the rising price of bitcoin has given birth to all kinds of digital currency financing (ICO) boom. To become a future currency form, digital currency must first have all the functions of the existing currency. However, the existing digital currency represented by bitcoin and blockchain technology still has challenges in some traditional problems< There is no doubt that digital currency is a beneficial attempt to establish the future monetary system, but its premise is to adapt to the current level of human proctivity, technology and culture. In the past, we overemphasized the anonymity, credit and wealth attributes of digital currency under the current credit standard system, but ignored the basic functions of currency
according to the prospective instry research institute, an investment institution, the current upsurge of various types of digital currency financing does not mean that digital currency is becoming more and more popular as a currency. On the contrary, it is regarded by some people as "digital assets" to store, hype or use for illegal purposes, which can not but arouse enough attention and vigilance.

4. There may be two situations. One is the emergence of a globally recognized digital currency, which can circulate globally. Another situation is the emergence of a super strong situation, just like the current international situation. This kind of digital currency may be issued by a powerful country or alliance, and other countries will also have their own digital currency, but it mainly plays a supporting role. Bitcoin, Ruitai coin and vitality coin may only exist as an asset class at that time.

5. After this craziness, the future development trend of the instry analyzed by the prospective instry research institute mainly includes the following points:
1. Virtual digital currency may continue to develop for a long time. Due to the high security of virtual currency, it can't be issued at will, and Chinese and foreign people can't identify the user's identity information in the transaction process, a large number of people have a crazy pursuit of virtual currency
2. Virtual digital currency may be involved more widely in the future. As long as someone recognizes and uses virtual currency, the existence of virtual currency has value
virtual digital money has developed so far. Prosperity and bubbles, wealth and dreams, questioning and regulation are all on the way. Investment is risky, so we should be cautious. At present, such playing methods as bitcoin have not been approved by the regulatory authorities. It is suggested that ordinary investors should participate in the game within their ability.

6. The value of digital currency is to replace paper money and become the mainstream form of currency. It is also the trend of social development that digital currency replaces paper money. Now the central bank has started to develop digital currency, and it is possible that it will meet with us in recent years. However, when this digital currency was born, there may be many restrictions, and it is impossible to popularize it in a large scale
however, the digital currency planned by the central bank is also different from bitcoin, Leyte, decent and other digital cryptocurrencies, but it will be used for reference.

7. Digital currency
unlike virtual currency, digital currency is neither bitcoin nor q-coin! That is to say, it is different from virtual currencies such as bitcoin and Ethernet
virtual currency can only be closed in circulation on the network, just like Tencent's q-coin and Huixin cloud software collaborative instry ecological chain platform, they can only be used for their own procts. Digital currency can be used for real goods and services transactions, but only the digital currency issued by the state is legal digital currency, bitcoin is illegal digital currency. As for legal digital currency, there is no unified international definition. Yao Qian, deputy director of the science and Technology Department of the people's Bank of China and head of the preparatory group of the digital currency Research Institute, believes that the digital currency researched and issued by the people's Bank of China is indexed RMB. From the perspective of national schemes, it belongs to legal encrypted digital currency, which is not only a payment tool but also a currency. Correspondingly, virtual currency is also called illegal fixed digital currency. Li Lihui, head of the blockchain working group of China Internet Finance Association, once said that digital currency must have legal status, national sovereignty endorsement, and clear responsibility subject of issuance. Virtual currencies represented by bitcoin and ethereal currency have no country, no sovereign endorsement, no qualified issuers, and no national credit support. These are not digital currencies
digital money is not equivalent to virtual currency
since digital money can be used for commodity trading, is Alipay and WeChat payment a kind of digital currency?
Alipay, WeChat payment and mobile phone banks are all electronic money, not digital money. These are all payment methods based on electronic accounts, which are in essence just a process of informatization of legal currency, not digital currency in a strict sense. For example, the amount of Alipay or WeChat transactions is essentially banknotes on bank accounts, but it is electronic form. The "100 yuan" displayed on the mobile phone will correspond to the real 100 yuan in the bank.
(edited by Huixin Yunxu)

8. It is wrong to say that China's digital currency comes from the people, because it comes from the present. Science.

9.

The central bank's digital currency is digital RMB, which is issued by the people's Bank of China. On March 9, 2018, Zhou Xiaochuan, then governor of the central bank, officially disclosed at a press conference that the name of the legal digital currency under development is DCEP

DCEP is the abbreviation of digital currency electronic payment. This means that the central bank's digital currency will have the al functions of legal currency and electronic payment at the same time

In September 2013, the Ministry of Public Security announced 10 typical pyramid selling cases, among which "Cloud Data Trade" is a large-scale pyramid selling mode in China

extended data:

specifically, the characteristics of DCEP are mainly reflected in finance and technology

1. As far as its financial characteristics are concerned, the functions and attributes of the central bank's digital currency are exactly the same as those of the RMB paper currency, which is only a digital version of the paper currency. This shows that digital currency is legal tender, and it depends on national credit to maintain the circulation system of digital currency. Mu Changchun, director of the digital currency Research Institute of the central bank, clearly pointed out that DCEP "is a digital payment tool with value characteristics"

In economics, M0 is often used to refer to the cash circulating outside the banking system. The central bank's positioning of DCEP is to replace M0, that is, to replace cash

2. In terms of technical features, the digital currency of the central bank has not fully adopted the blockchain technology. The blockchain research group of the digital currency Research Institute of the people's Bank of China has pointed out in a paper that the processing efficiency of the blockchain system needs to be improved. The encrypted assets based on this technology can not guarantee the stability of its anchored assets. At the same time, its decentralization also conflicts with the central bank's centralized management requirements

However, it is said that digital currency draws on some of these technical concepts, such as asymmetric encryption, smart contract and so on. The new cryptocurrency system has the advantages of security, controllable anonymity and unforgeability, which makes up for the problems of high cost, difficult tracking and large counterfeiting