Full text of digital currency revolution

1. digital currency is the proct of currency development to a certain stage. The issuance of digital currency is mainly to make transportation more convenient and also concive to the supervision of the economy.

2. Digital money has quietly entered many people's lives, ranging from the digital savings fund in the bank to the shopping fund in a certain business. And the possibility of legal or official issuance of digital currency has not started from today. With the rise of blockchain technology, legal digital currency has become a key research field of central banks in recent years. Central banks in Britain, Canada and other countries have indicated that they will set foot in this field and put forward their own plans. As early as January this year, the central bank held a seminar on digital currency and said that it had set up a special research team to strive for the early launch of the digital currency issued by the central bank. In fact, since 2014, the central bank has set up a special research team to conct in-depth research on the framework of digital currency issuance and business operation, key technologies of digital currency, issuance and circulation environment, and legal issues.

3. The concept of bitcoin was first proposed by Nakamoto in 2009. According to Nakamoto's idea, open source software was designed and released, and P2P network was built on it. Bitcoin is a kind of P2P digital currency. Point to point transmission means a decentralized payment system
unlike most currencies, bitcoin does not rely on specific currency institutions. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design to ensure the security of all aspects of currency circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction. The design based on cryptography can make bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity. The monetary system used to have no more than 10.5 million in four years, after which the total number will be permanently limited to 21 million
bitcoin can be cashed and converted into the currency of most countries. Users can use bitcoin to buy some virtual items, such as clothes, hats and equipment in online games. As long as someone accepts it, they can also use bitcoin to buy real-life items[ 1-2]
on February 26, 2014, Joe Manchin, a Democratic senator from West Virginia, issued an open letter to a number of regulatory authorities of the US federal government, hoping that the relevant institutions would pay attention to the status quo of bitcoin's encouraging illegal activities and disrupting the financial order, and take action as soon as possible to completely ban the electronic currency.

4. The traditional electronic payment system is built on the basis of credit, relying on the centralized third-party institutions to complete. Digital currency technology such as bitcoin can effectively integrate electronic payment with decentralized system
the monetary property of digital currency has attracted a lot of attention, and the distributed accounting system behind the payment system is undoubtedly a more attractive innovation. In view of the fact that bank deposits and other financial assets are only in pure digital form, this just provides a broader opportunity for distributed accounting system to change the whole financial system
money and payment system are naturally linked. The payment system, the medium of transaction, must be safe and reliable. Any trading system needs an accounting system to record the assets you own in the system
modern payment systems usually use computers to store data. To put it bluntly, the money you deposit in the bank is a series of numbers recorded in the bank account
this article will focus on the recent innovative events in the field of payment, such as bitcoin, a global digital currency, which skillfully integrates the most perfect payment system with the most perfect currency. Users can rely on it to complete the exchange of legal money, commodity trading, purchase services and other activities without the participation of third-party institutions (such as banks). Its innovation lies in that it is not controlled by any centralized banks
bitcoin, the largest digital currency at present, was founded in 2009 and has been supported by thousands of businesses around the world, from pizza to virtual host. Most digital currencies, including bitcoin, have a fixed supply set. This chapter will give a brief introction to its working principle. It will give you a brief introction on how to strengthen the secure payment system with technical means, evaluate the possibility that the old payment system should be replaced by new technology, explain how the distributed accounting system removes many problems in the existing system, and explore new areas where new technology may be applied
many media reported that bitcoin only reported the discussion on its currency property and price. This paper focuses on the revolutionary innovation of the payment system brought by the distributed accounting system of digital currency - the payment system without the participation of any centralized institutions. These innovations can also be expanded in other areas, such as encrypted communications, decision-making, P2P networks
central banks have the responsibility to stabilize their monetary and payment systems to ensure the stable operation of the economy. The recent innovation in payment technology has been related to the topic of "digital currency". Most of the payment systems in today's economies follow the pattern of centuries ago, that is, they use centralized institutions to carry out secured transactions. For example, the Jinpu bank appeared in the 16th century. People can exchange physical gold for gold tickets, which can be used as gold coins or gold coins, but can not be used across banks. With the requirements of social development, there is an increasingly urgent need for an inter-bank payment system, now the practice is a variety of UnionPay organizations
bitcoin, Ruitai coin, Weimeng coin, Laite coin and other digital currencies may disappear in the future, because now it is only a small experiment, but this idea may continue.

5. On the basis of limited value, there will be great bubbles at the same time. Just like beer, many bubbles will emerge after opening, so that the real value can be seen until the market calms down.

6. 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.

7.

Now with the continuous development of the network, our way of life has also undergone fundamental changes. Modern people in the new century are enjoying the convenience brought by science and technology. Among the continuous innovation of lifestyle, the innovation of payment mode is probably the most revolutionary. Now our mobile phone has become our wallet, and there are no restrictions on mobile payment scenarios. Under such circumstances, the digital currency of the central bank is also available in Shenzhen

now we are basically using WeChat or Alipay for mobile payment, and after the emergence of digital money, Alipay and WeChat will definitely have a certain impact. Strong>, however, because the promotion of digital money still takes some time, the impact on Alipay and WeChat will not be very large in the short term. Similarly, Alipay and WeChat may also benefit from their advantages in digital currency promotion. RRRRR}

three, opportunity

, of course, Alipay and WeChat are also facing great opportunities in the face of crisis. In fact, digital currency is still currency. It is different from cash only in form, and there is no difference in essence

under such circumstances, the introction of digital money into Alipay and WeChat is not a reality. Therefore, in the current situation, Alipay and WeChat should stand on a higher level to look at the digital currency. P>

, ladies and gentlemen, what are your views on the digital currency for WeChat and Alipay? Speak freely in the comment area. p>