Decentralization of central bank's legal digital currency

1. For example, I borrow money from you in a village. Normally, if I am afraid that you will not repay the money, I can find an intermediary recognized by everyone, such as the village head as the guarantor, and sign an IOU. In this way, if you default at that time, I can find an intermediary to prove that you really owe me money, But there are two problems: 1. What if the village head finds out that his long lost son colludes with him to cheat you on money? 2. What if the middleman dies on the spot the next day! This is about trust and security. If the method of blockchain is to provide you with the certificate of the whole village (distributed), so that everyone knows about it and the other party can't default on it. Second, even if a small number of people or village heads deny (some nodes commit crimes) that they have lost the IOU or tampered with the content, there will still be others to make the basis

above, explain the two problems of building owners: 1. Decentralization, because the account book records are not centralized in the hands of each participant, and you will get paid if you save and keep accounts. 2. Since I can get rewards by saving and keeping accounts, can I just keep accounts instead of storing them? If you have a mining pool, you can keep accounts for it and store it for you. In this way, you can still get good rewards. There are only a few mining pools in the world, so they are centralized

2. That is, no one can control, not be controlled by the living center of a living group. Therefore, it can not be used as legal tender recognized by the state. There are a group of money speculators who argue that virtual currency will replace paper money every day. It's all bullshit. We must pay attention to investment risks. Now there are many pyramid schemes with virtual digital currency gimmicks to cheat money

3. The people's Bank of China has designed a two-tier architecture for digital currency
specifically, according to Yao Qian, director of China digital currency Research Institute, the design framework of central bank's digital currency is mainly convenient and efficient, safe and controllable, and popular development
as for the two-tier framework, the two-tier framework is the central bank and the commercial bank, based on the account and wallet. This framework is to combine the original bank account system with the account system based on digital currency wallet
in blockchain technology, digital currency is separated from legal currency system and bank account system. Otherwise, together, it will cause chaos. Considering this problem, Yao Qian introced digital currency wallet into the account system of commercial banks. In this way, an account can manage both electronic currency and digital currency. Of course, this kind of design has a great impact on the current banking system, but it is also a resource for commercial banks with mature system
how does digital currency wallet work in commercial banks
bank accounts and digital currency wallets of commercial banks have common management features. In this case, bank accounts and digital wallets have different positioning. According to the wallet standard designed by the central bank, a wallet is equal to a safe deposit box. According to the requirements of customers, the bank will manage the safe deposit box as all the properties of cryptocurrency. This framework adds a Digital Wallet ID field to the bank account. In this way, the wallet has the function of a safe deposit box and does not participate in the business, so as to avoid affecting the core business of the bank
digital currency transfer can be directly transferred in the commercial banking system, or through the note issuing bank using the client-side digital wallet, direct point-to-point transactions, so that there is no need to rely on inter-bank payment between account banks< In a word, digital currency wallet is the personal wallet in the commercial banking system
theoretically, the payment system deals with demand deposits, while digital currency is in the category of cash
is the digital currency issued by the central bank decentralized
Yao Qian said that the biggest issue facing the instry now is whether decentralized distributed ledger should be used at the top level
Central Bank digital currency is more convenient and can develop into controllable anonymity through centralized issuance and account based weak association. However, in the digital world, we cannot confuse the economy and finance behind the numbers. Although they are all numbers, they represent different assets, so the central bank will keep them in mind when designing. We want to have a mature financial infrastructure for legal digital currency, but considering that the note issuing bank is only responsible for the digital currency itself, and the account bank is responsible for the actual management business, so as long as the specific application is implemented, the note issuing bank and the account bank will perform their ties and do their best
then the characteristics of the central bank's digital currency are
1. Digital currency, like RMB, has stable value
2. The operation mode is the same as RMB, which is endorsed by the national credit and issued by the central bank, and all commercial banks exchange it into the market
3. Digital currency issuance relies on big data, because it has the possibility of real-time collection of currency bookkeeping, flow, transaction, etc., which can provide help in anti money laundering
4. After digital currency replaces paper currency, it will play a positive role in preventing counterfeit banknotes, changing change, and preventing damage and loss ring transaction storage
5. It will rece the waste of resources. The proction and printing of paper money need cost, while the proction of digital currency depends on big data, so it will rece the waste of resources
therefore, with the advent of the central bank's digital currency, personal participation will have less opportunities to make money
I hope it can help you
hope to adopt it

4. Q: What is blockchain technology? A: Blockchain technology can be understood as a public accounting mechanism. It is a technical solution rather than a specific proct. The basic idea is to establish a set of public account books on the Internet, in which all users in the network keep accounts and check accounts together, so as to ensure the authenticity and non tamperability of information. The reason why it is called "blockchain" is that the structure of blockchain storage data is composed of a chain of "storage blocks" on the network. Each block contains all the information exchange data in the network within a certain period of time, and the chain continues to grow over time. Q: What is the relationship between blockchain and bitcoin? A: Bitcoin used to be one of the most successful applications of blockchain technology. Specifically, the blockchain is a series of data blocks generated by the use of cryptography Association, and each data block contains the information of effective confirmation of multiple bitcoin network transactions. It can be said that bitcoin is a "killer application" of blockchain idea. Blockchain is the underlying technology of bitcoin, but its role is not limited to bitcoin. Q: What are the technical features of blockchain? A: Based on open source software and peer-to-peer network, blockchain can bring more advantages than traditional network in currency related fields such as transaction payment. These advantages include: decentralization, no need to trust the system, disintermediation, tamper proof, encryption security. Q: How does blockchain technology improve the authenticity and non tamperability of data? A: The newly added data blocks are linearly added to the end of the original block in chronological order, which constitutes the blockchain. In this process, the data is distributed in each computer. This decentralized storage method improves the authenticity and non tamperability of the data. When a transaction occurs, users all over the world can act as regulators. If we do not recognize the legitimacy of the transaction, the transaction cannot be concluded, and the data on the blockchain is maintained by us collectively. Q: Is there any potential defect in such a brain burning "blockchain"? A: Blockchain also has some defects to be solved, such as security risks, work efficiency and resource consumption. Since the supervision of blockchain depends on all nodes in the network, theoretically speaking, if you master more than 50% of the computing power of the whole network, you will be able to successfully tamper with and forge blockchain data. Secondly, e to the distributed storage, each node in the blockchain needs to keep a database, and any transaction in the network needs to be authenticated and recorded by other nodes, so the efficiency of the system is low. Finally, because the operation of the blockchain relies on the computing power contributed by the network nodes, these computing power do not proce actual social value, so it is generally considered that these computing power resources are "wasted". Application of blockchain in various fields when blockchain technology is published, many people think it is possible to realize DAC. DAC (full name) can be translated into distributed autonomous system, which refers to an organization system that runs autonomously without intervention and management through a series of open and fair rules. DAC has many forms. It may be a digital currency, a system or an entity, or even a driverless car. This kind of organization system can provide valuable services for customers in the form of currency transfer (such as bitcoin), asset transaction, domain name service, or any other business model. Therefore, through the idea of information sharing, blockchain technology is likely to bring profound changes in cost rection and security improvement to various instries. Application scenarios that existing blockchain technology can achieve: proof of existence can be used to confirm rights in the field of Internet finance, that is, blockchain can really realize "proving your mother is your mother". The smart contract guarantees the validity of the contract, such as the generation required by the electronic signature law; Reliability of methods for storing or transmitting data messages; The reliability of the method of maintaining content integrity; The reliability of the method used to identify the sender. The blockchain of the Internet of things can solve the problem of the coding standard interaction interface of the Internet of things. When an e-signature is signed by identity verification, the signature data is only under the exclusive control of the signer. Any changes to the e-signature after signing can be found, and any changes to the content and form of the data message after signing can also be found. The market forecasting community, August, is an example. Anyone can access and use August anywhere in the world, which may bring unprecedented liquidity and trading volume to the market. Asset trading NASDAQ OMX Group Inc is testing blockchain technology, which NASDAQ believes has the opportunity to transform traditional financial trading methods into bitcoin like ones. The bitcoin mode of e-commerce can be applied directly. Is it possible for e-commerce to become a "harmonious" market without supervision? Social news magmavc has invested $400000 in getgems (formerly known as gems), a start-up project for decentralized social communications applications. File storage directly impacts and even subverts the traditional cloud computing architecture. Chain, a data API blockchain API service provider, has received a $9.5 million investment led by Khosla ventures. Wall Street's financial companies are investing in blockchain and seizing the beach. Visa, NASDAQ and Citigroup also invested in chain, an old Jinshan blockchain start-up, with a financing amount of US $30 million. In the financial field, what can blockchain do? Specifically, in the financial field, in addition to providing a trading platform for bitcoin, Jiuding investment believes that blockchain technology can also greatly improve various asset trading systems other than the existing digital currency. For example, it plays an important role in the post transaction market proceres such as the liquidation and settlement of financial derivatives, foreign exchange, private equity, energy credit linked investment procts and other assets. In terms of speed, the time required for settlement audit in the U.S. securities market is 2 to 3 days. The application of blockchain technology is expected to rece the settlement audit time from hour level to minute level or even second level, thus recing the settlement risk by 99%, and recing the capital cost and system risk. In the blockchain, transaction confirmation and settlement are carried out at the same time. After the node transaction is confirmed by the system, it is automatically written into the distributed ledger, and the corresponding distributed ledgers of all other nodes are updated at the same time. The automatic operation mechanism can greatly shorten the settlement cycle. In terms of expenses, under the current settlement mechanism, in order to achieve a shorter settlement cycle, it is necessary to increase the settlement cost and initial investment expenses significantly. The emergence of blockchain technology makes it possible to rece the settlement cycle more efficiently and quickly, and rece the transaction intermediate proceres, so as to save a lot of money, which is the market space of the related blockchain instry. In terms of security, the integration of blockchain technology into smart contract technology can process complex derivatives transactions programmatically, making clearing more standardized and automated. The time linear stacking feature of the block itself can help the regulators identify and discover illegal operations. At the same time, the smart contract can change the compliance inspection into automation and minimize the possibility of violation from the beginning of liquidation. The 24-hour uninterrupted operation of blockchain technology can also make the data exchange processing of Pan state exchange more stable and reliable. In addition to securities transaction settlement, blockchain can also be used to register and issue digital asset ownership. Blockchain technology can greatly enhance program automation, while smart contract can write many complex derivatives trading terms into the registration and issuance program supported by blockchain technology. When a transaction occurs, blockchain network can quickly and correctly execute. In November 2015, LINQ, a new blockchain technology project cooperated by Nasdaq and chain, has completed the first private equity transaction using the blockchain based issuance and trading platform. The application prospect of blockchain in the field of accounting has also attracted the attention of a large number of people in the instry. Accounting, auditing and compilation cost a lot for global enterprises and the four accounting firms. Automatic accounting based on blockchain technology can greatly rece the relevant costs. The company does not need to recruit special auditors to audit the account book, and all transactions can be stored in the internal blockchain. Due to the irreversibility and time stamp function of the blockchain, the external auditors and regulators of the four major accounting firms can monitor the company's account books in real time by tracking these blockchains. At the same time, the institutions can greatly rece the dependence on the auditors to audit financial transactions and make the audit business more efficient. With the increasing maturity and application expansion of blockchain technology, blockchain start-ups in developed countries have sprung up. At present, the world's leading blockchain companies generally focus on transaction, payment, clearing, Internet of things and other pain point businesses. Some companies have achieved a certain scale, and have developed a relatively clear business model. At the same time, many companies have extended their business in the blockchain instrial chain, covering payment, transaction, risk control, etc., making full use of the multi-point coordination effect. At present, Jiuding investment is also focusing on the projects and applications of various blockchain technologies.

5.

Digital currency can be understood as the digitalization of RMB, which has two obvious advantages: "no account payment" and "no network payment". After Facebook launched Libra this year, the central bank's digital currency has also stepped in. We see both challenges and opportunities

in a word, digital currency is still RMB in fact, but some changes have taken place in its form. We say that digital currency is of great significance. It not only enhances the security and controllability, but also makes counterfeit currency "invisible". In addition, the issuance of the central bank's digital currency is also concive to the central bank's more convenient and transparent management

6. Digital currency is a kind of legal encrypted digital currency, which is not only a payment tool but also a currency. It is essentially different from Alipay and WeChat payment. 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
moreover, it is totally different from q-coin and bitcoin. Commonly known as q-coin and bitcoin, these belong to virtual currency. Compared with digital currency, the most fundamental difference lies in the difference of issuers

virtual currency is the electronization of illegal currency. The issuer is not the central bank, and it can only circulate in a specific virtual environment, such as Tencent Q coin and other game coins; 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

7.

It is not currently available

at present, the Central Bank of China has not issued and approved the digital currency of issuers and investors

However, at the beginning of the year, the central bank held a seminar on digital currency, at which it made it clear that it was necessary to issue digital currency as soon as possible, and the central bank put the issue of digital currency on the agenda

however, so far, the central bank has not issued any digital currency, and Zhou Xiaochuan, the governor of the central bank, said that the time is not ripe to issue digital currency. Moreover, the digital currency issued by the central bank is different from bitcoin, Ruitai, Laite and other digital cryptocurrencies, and the digital currency issued by the central bank is not decentralized

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when the central bank issues digital currency, it needs to establish a basic digital currency system. In this system, the central bank is in charge of the digital currency issuing bank, the commercial bank is in charge of the bank, and the public and indivials hold digital wallets. This is not much different from the existing monetary system in essence, but the managed currency is changed from paper money to digital cryptocurrency

in terms of issuing mechanism, there are two modes:

one is the traditional mode of "central bank commercial bank", that is, the central bank issues digital currency from the issuing bank of the central bank to the Bank of the commercial bank. When an indivial withdraws money from the commercial bank, the digital currency is transferred from the commercial bank to the personal digital wallet

another mode is the "central bank public" mode, that is, the central bank can directly issue digital currency from the currency issuing bank to the digital wallet of the public and indivials. In essence, no matter which issuing mode, money is ultimately held by the public, which is the debt of the central bank to the public

8. On April 14, a screenshot of the digital currency DCEP personal wallet app spread wildly on the Internet. According to the news, the central bank's digital currency DCEP has been tested in some banks, which means that the central bank's digital currency is about to come out. So how can the central bank buy it after issuing legal digital currency
it is understood that the research and development of legal digital currency in China started in 2014. In order to promote the research and development of digital currency, the central bank has also set up a digital currency Research Institute. The project of the central bank's digital currency is called DCEP, which is also called digital currency and electronic payment tools. In recent years, the research and development of digital currency has accelerated in China. At present, in addition to the internal test concted in Agricultural Bank of China, DCEP has also been concted in several other major commercial banks
Mu Changchun, director of the digital currency Research Institute of the central bank, said that the functional attributes of the digital currency launched by the central bank and paper money are identical, except that the digital currency is a kind of legal tender in digital form
many friends who have invested in bitcoin and other digital currencies want to know how the central bank purchases digital currency after they hear that the central bank is going to issue digital currency, but I'm afraid they will be disappointed. The digital currency issued by the central bank is legal tender, which is equivalent to a substitute for paper currency. Compared with paper currency, digital currency is just a change of trading medium, The functions and properties of the two are the same. Just imagine, who would use a 100 yuan note to buy a 100 yuan digital currency
specifically, the legal digital currency issued by the central bank does not pay interest and can be used in small and high-frequency business scenarios. Because the central bank's legal digital currency uses blockchain technology and has the characteristics of decentralization, the security of using digital currency for transactions will be higher, and the transaction information will be transparent, so the central bank can track the flow of funds, Can effectively combat money laundering and other crimes. When people use the central bank's digital currency, they should abide by all the current cash management regulations
in general, the legal digital currency issued by the central bank is not an investment type digital currency similar to bitcoin, so there is no problem of purchasing the central bank's digital currency for investment
this answer is provided by KangBo finance and economics. KangBo finance and economics focuses on the interpretation of financial hot events and the popularization of financial knowledge. It adheres to the profession and pursues fun. It is a financial content that people can understand and transmits financial value in a variety of vivid ways. I hope this answer will help you.

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