Bank of Russia digital currency report

1. It is reported that the Central Bank of China is testing the digital currency based on blockchain
according to media reports, the people's Bank of China has completed a test on December 15, which shows how to conct transactions and clearing in the distributed ledger system
it is reported that this test was concted jointly with China's mainstream commercial banks, including ICBC, Bank of China and Weizhong bank< The report reads: "the people's Bank of China believes that digital currency can not only rece circulation costs, but also increase transparency, inhibit money laundering and tax evasion."
the report even suggests that Shanghai bill exchange pilot digital currency and set up a national bank bill transaction. At the same time, the people's Bank of China will also establish a digital currency Research Center, and is recruiting experts in big data, cryptography and blockchain technology< The report comes after Zhou Xiaochuan, the governor of the people's Bank of China, issued a statement in February in which he hinted that the people's Bank of China was considering using blockchain to issue digital currency
moreover, this test was concted at the time when the people's Bank of China launched an investigation into China's bitcoin exchange, which started early this month and has led to many changes in trading policies
as the world's first standard digital currency, Puyin takes 1 billion Tibetan tea as the primary standard asset, writes 1 billion Tibetan tea assets into the blockchain through digital encryption technology, and records the identification, evaluation and right confirmation of Tibetan tea.

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

3. On the issue of issuing their own digital currency, central banks are always less thunderous. Central banks around the world are considering issuing their own digital currencies to compete with cryptocurrencies such as bitcoin, but they have been unable to do so for a long time

the media's attention to the central bank's digital currency has increased significantly, especially after Zuckerberg testified in Congress on the Libra issue and Christina Lagarde acknowledged the "clear demand" for stable currency at her first media reception as president of the European Central Bank, which seems to have changed the public's view on this matter, Let many people in cryptocurrency community think that cbdcs is in sight<

according to the latest survey report released by the bank for International Settlements, central banks in the past seven years have been investigating this technology and assessing its impact. Of the 63 central banks surveyed, 55 said they were unlikely to issue cbdcs in the next three years, and only one reported that they were "highly likely to issue large-scale cbdcs in the next three to six years."

although the proportion of central banks studying cbdcs is very high, the crux of the problem is that it is mainly theoretical and investigative work. Only five central banks have concted more in-depth research and real project development or experimentation - but that still does not mean that they will necessarily issue cbdcs

through close observation, it is more and more obvious that both Libra recently released by Facebook and the new stable currency assets have had a significant impact on the central bank. Today's situation took hundreds of years to form, but it changed in a few months; Competition, the most terrifying and unfamiliar concept that has never been thought of before and penetrated into the elite society of central banks, is now knocking at the door

it can be said that the solution to the current situation is still unclear. Some people who are familiar with these things even say that they are bluffing. However, in Lagarde's own words, the slow and wait-and-see regulatory approach can no longer meet the needs

1. What is central bank digital currency<

what is the difference between central bank digital currency CBDC and other digital currencies

CBDC is a new form of currency, which is directly issued by the central bank in digital form as legal tender. The current form of legal currency is cash, reserve deposit or balance settlement< There are two main differences between CBDC and other digital currencies (including cryptocurrency and other forms of central bank currency):

1. CBDC has nothing to do with cryptoassets. They're not decentralized, they don't have to be blockchain based, and they're certainly not anonymous, they're not unlicensed, they're not censored< 2. Contrary to the current digital cash, the operation structure of CBDC will be different from other forms of central bank currency. CBDC has more powerful functions. They are programmable, can generate interest, can be cleared in near real time, and have cheaper handling charges and wider openness

when designing CBDC, the speed of central banks is different. Different central banks adopt their own approach. However, in general, there are three problems being explored: whether CBDC should be based on token or account number, whether CBDC should be batch (only open to banks) or retail (open to the public), and whether it should be based on DLT

when CBDC is to be implemented, things will become complicated, and there are many thorny problems to be considered

for example, once CBDC is launched, does it need to cancel cash? Should CBDC carry interest? Should they have face value like cash? Or linked to the total price index? What impact will this have on commercial banks? What about anonymity and privacy? All these questions need to be answered<

2. Motivation for issuing CBDC

in the 2017 staff discussion paper, the Bank of Canada gave six reasons for issuing CBDC in an article entitled "central bank digital currency: motivation and impact":

1. Ensure that the central bank provides sufficient cash to the public, and maintain the seigniorage revenue of the central bank

2, Support non-traditional monetary policy

3. Rece overall risk and improve financial stability

4. Improve payment competitiveness

5. Promote financial inclusiveness

6. Curb criminal activities

looking back at the bank for International Settlements survey we analyzed earlier, payment security and domestic efficiency are selected as the most important motives of the central bank. According to a large number of papers published by the central bank and other large financial institutions, for developed countries, the transformation into a cashless society is the main driving factor, while for developing countries, financial inclusiveness, cost rection and operational efficiency are the main motivation

throughout the rest of the reports and the literature that can be found, the fierce competition brought about by bitcoin and other innovations in the cryptocurrency instry, as well as the clear need for "one step ahead", of course, are not listed as the reasons for issuing CBDC< The advantages and potential risks of CBDC are very low.

if the central bank starts to launch CBDC and succeeds in the end, there are many potential benefits

from a technical point of view, CBDC is much better than the current form of legal currency. They can be tracked better, collect taxes more conveniently, transmit monetary policy better, have better financial inclusiveness, and rece the cost of procing physical currency

the most obvious advantage is that payment is cheaper and faster, whether it is domestic payment or cross-border payment

in addition to the design and implementation problems, a key problem of issuing CBDC is that CBDC may increase the risk of bank operation. However, this only happens when banks promise that their deposits can be converted into CBDC on demand, which is not necessarily the case, according to the Bank of England document

4. Facts on the ground

how far is it from us to see a real CBDC appear in the market? It's hard to estimate, but at present, we can sum up the current situation in one sentence: all talk but no practice

if we put aside the failed digital currencies of Ecuador, Tunisia and Venezuela, we can only do theoretical research, a small amount of experiments, and issue some feasible CBDC issuance announcements supported by the state in the future

the most famous CBDC projects in progress are: e-peso in Uruguay (the project was successfully tested in 2018), DCEP in China, "project Inthanon" in Thailand, e-krona in Sweden (still in the research stage)...

5. The revolution has not yet been successful, and comrades still need to work hard

considering the factors mentioned above, Most of the headlines about CBDC's upcoming release are groundless. All projects scheled to be released this year have been delayed

in fact, there is still a long way to go for the birth of CBDC, and to convince the public, we need more than a statement. Given the current situation, it seems that CBDC and other cryptocurrencies may not affect each other - at least for now.

4.

At the G20 meeting, different countries held different views on digital currency, some strongly resisted it, and some actively supervised it. Now let's take a look at the attitudes of the G20 countries towards digital currency

In a statement, the Canadian Securities Regulatory Agency (CSA) said that considering the whole process of ICO issuance, many ICO tokens meet the definition of securities and require them to comply with the securities law. In addition, the CSA noted that ICOS may also be derivatives, subject to derivatives laws passed by Canadian securities regulators, including trade reporting rules. Regulators said they welcome companies that are about to conct ICO to enter the "regulatory sandbox" to test new financial procts in a limited environment

India

the securities and Exchange Commission of India is planning guidelines for the regulation of the bitcoin market in India. In addition, the securities and Exchange Commission of India set up a financial regulatory commission and held meetings with Reserve Bank of India (RBI) officials. The SEC also plans to regulate whether bitcoin derivatives and other cryptocurrencies are used to raise funds illegally

5.

In today's society, the whole world is a super strong society. One superpower refers to a superpower, and the United States deserves it. There are many powerful countries, such as Japan, Russia, China and so on. Nowadays, digital currency is widely popular. Up to the top officials and dignitaries, down to the people, there may be people playing digital currency. What's more, maybe you have several friends playing digital currency. According to the current situation, the main body of issuing and implementing digital currency is mainly divided into two categories, one is issued by companies, the other is issued by social organizations or associations. Although countries are joining the tide of blockchain research, so far no country has officially launched sovereign digital currency

Therefore, Venezuela should learn more from Russia and strengthen its own construction. And other aspects have come up, and then issue their own digital currency, I believe credit will be higher

6.

On October 8, Shenzhen Municipal People's government and the people's Bank of China jointly launched a pilot project of digital RMB red envelope

after the news was sent out, it has aroused warm repercussions from all walks of life across the country. At this stage, people are most concerned about the impact of digital RMB on our daily life? Will it replace Alipay and WeChat? Due to the lack of introction and promotion of digital RMB by authoritative institutions, the citizens and businesses participating in the activities also have many questions about digital RMB. According to the official announcement, the red envelope activity of digital RMB is a routine test in the process of digital RMB research and development. It can be seen that there is still a certain distance from the official implementation of digital RMB

7.

At present, the world's major central banks are focusing on digital currency

instry insiders said that these digital currencies are stored in digital wallets and run in specific digital currency networks, which are more difficult to tamper with, easier to operate online and offline, more visible, and more extensive channels. As a new thing, the central bank's digital currency must have its own form of existence

Article source: bit110 network