Why China promotes digital currency
the so-called digital currency is the RMB with monetary nature issued by the central bank. The reason to accelerate the promotion of digital RMB is to make the digital RMB form an international financial pattern, improve China's financial efficiency, and bring new development opportunities in the process of development
when it comes to digital currency, you may immediately think of virtual currency such as bitcoin. In fact, there are differences between digital currency and virtual currency. Those virtual currencies are affected by too many factors, and there will be inflation or very large fluctuation of stocks. Now, digital currency has a real purchasing nature, It is the same as paper currency. It only exists in the form of paper, and the other is in the form of numbers. We must not compare it with the wallet in Alipay or WeChat, because every digital currency has its own banknote code, that is, it can trace its source and use.
in addition to the above disadvantages and advantages, there will be no inflation in the process of issuing digital currency. But it's still in the testing stage, so we'd better use paper currency or some apps to pay first
however, the digital currency that the central bank plans to issue has the monetary attribute and has the credit endorsement of the central bank. The central bank's version of digital money will first be applied to the bill market. It is still difficult for the central bank to popularize the digital currency in China, because the degree of economic development is different across the country
at the same time, there are some applied digital currencies in China. For example, the Puyin digital currency launched by Puyin group is a standard digital currency with credit endorsement of related tea assets.
Digital currency has been issued in some cities in China, but it will take some years for it to be popularized{ RRRRR}
3. It takes a while for digital currency to be popularized in an all-round waydigital currency is to turn paper money into a number that people can see on the Internet, which is more convenient for people to operate as long as we use the mobile phone in our daily life, we can complete a series of commodity transactions without using the Internet. At that time, it will be the real realization of a mobile phone that can travel all over the world
therefore, as the world's second largest economy, we need to develop and implement digital currency
the above are my personal suggestions, which I hope will be helpful to your questions.
China's digital currency is as long as there is a mobile phone, no network, as long as the touch can be paid, and with detailed transaction records, it is very helpful to combat money laundering crime; This currency is mainly aimed at grabbing shares for Alipay, WeChat and POS terminals. It can also pave the way for RMB internationalization. Digital currency is not only safe and endorsed by the state, but the global central bank is pushing digital money. Now the digital currency is still in the testing stage. What time will it be popularized? It will have to wait until the Beijing Winter Olympic Games in February 2022 to fully promote the use
China's central bank's digital currency can be used for daily micro payments. Because it will be more stable with the endorsement of the state, the central bank's digital currency is different from bitcoin and Libra launched by Facebook. I give digital currency legal effect, and indivials can't refuse to accept it. At the same time, it is very convenient to use. It can be paid without binding any bank account. Digital currency will not cause inflation. Now it can be implemented and used in Shenzhen, xiong'an, Cheng, Suzhou and other cities. It also shows that the era of paperless is coming. Digital currency is a new concept with high technology content. In the future, RMB will enter the 3.0 era. Although the current digital currency is more powerful, it is still unable to put an end to money laundering and corruption
it can be said that China's currency provides a useful space for a RMB transaction in the world. Even for many people, digital RMB may provide a useful and effective way for a world bank to communicate
the use of digital currency has a direct impact on a country's economic development. It can be said that on the technical level, digital currency provides a forced mechanism to ensure that it can monitor all capital flows and implement greater control over China's financial system and capital account. The development of digital currency in China can also effectively provide the direction for China to avoid the U.S. leader's financial system
The main reasons for China to accelerate the pace of promoting digital RMB are as follows:
Third, Digital monetary policy is more transparent, which is concive to strengthening the stability of the entire monetary system digital currency has other advantages, which can make monetary policy more transparent. Economics generally believes that monetary policy should strengthen the monetary transmission mechanism, and the implementation of monetary policy should be systematic and transparent, so as to strengthen the stability of the whole monetary system. The issue of digital RMB provides a very good opportunity to improve the transparency of the central bank's monetary policy framework. Through digital currency, central banks can provide a lasting, credible and transparent nominal anchor for the economic system
Fourthly, it makes it easier for the state to supervise the flow of funds and facilitate the state to levy taxes