Five elements digital currency revolution

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

2. After the people's Bank of China announced the launch of digital currency as soon as possible in January 2017, the governor of the people's Bank of China, in an exclusive interview with Caixin weekly, elaborated on digital currency in detail, saying that there was no established timetable. The relationship between digital currency and cash will be parallel and graally replaced for quite a long time.

3. 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.

4. Yao Qian, director of the digital currency Research Institute of the people's Bank of China, told the media: "the central bank issues legal digital currency

5.

If it is legal tender, then it has no effect. For example, the non legal tender issued by the central bank is regarded as a financial asset. It has little impact on the tax system

it has a subversive potential impact on accounting practice. Those who try to cheat on tax should be careful. In theory, you can analyze those evasive behaviors that you have done at almost zero cost

if digital currency is widely accepted and can play the role of currency, it will weaken the effectiveness of monetary policy and bring difficulties to policy-making. Because digital currency issuers are usually unregulated third parties, money is created outside the banking system, and the amount of circulation depends entirely on the wishes of the issuers. As a result, the money supply is unstable. In addition, the authorities are unable to monitor the issuance and circulation of digital currency, which leads to the inability to accurately judge the economic operation and brings trouble to policy-making, At the same time, it will weaken the effectiveness of policy transmission and implementation

extended data

various bill market businesses based on commercial bills are growing rapidly, and bill financing procts have become a hot field of Internet financing. However, about 70% of the current domestic bill business is still paper transactions, and supply chain finance also relies heavily on labor costs

in the future, if we realize the digital monetization of bills and adopt the blockchain transaction, we will make the bills, funds, financial planning and other related information more transparent. With the help of intelligent contract, we can generate an unforgeable, open and unique electronic contract between the borrower and the borrower, and directly realize the point-to-point value transfer, without the need for specific physical bills or central system for control and verification, It can prevent selling more than one vote, track the flow of funds in time, protect the rights of investors and rece the cost of regulators

6. 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.

7. 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.

8. 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.