What is legal digital currency
digital currency is an alternative currency in the form of electronic currency (which can be used for real goods and services transactions)
digital currency has the main characteristics of network packets. This kind of data packet is composed of data code and identification code. The data code is the content we need to transmit, while the identification code indicates where the data packet comes from and goes
based on the characteristics of digital currency, the direct benefit of digital currency to the central bank is not only to save the cost of note issuance, circulation and settlement, but also to enhance the central bank's ability to control funds
Electronic money and virtual money are called digital money. According to the definition of the European Central Bank, virtual money is issued by non central banks, credit institutions and e-money institutions, which can be used as the numerical expression of the value of currency substitutes in some cases{rrrrrrr}
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the process of digital currency trading through the platform is as follows:
(1) investors should register accounts first, and obtain digital currency accounts and US dollar or other foreign exchange accounts at the same time
(2) users can buy and sell digital currency with the money in their cash account, just like buying and selling stocks and futures
(3) the trading platform will sort the buying requests and selling requests according to the rules and start to match them. If they meet the requirements, the transaction will be concluded
(4) e to the difference between the buy and sell volumes submitted by users, a buy or sell request may be partially executed
China does not issue digital currency, and all the existing digital currencies are illegal
the central bank pointed out that no legal digital currency has been issued, and no institutions and enterprises have been authorized to issue legal digital currency. At present, the so-called "digital currency" in the market is not legal digital currency
virtual currency is the electronization of illegal currency, and its original issuer is not the central bank. This kind of virtual currency is mainly limited to circulation in a specific virtual environment. Digital currency can be used for real goods and services transactions, but only the digital currency issued by the state is legal digital currency
"the legal currency of our country is RMB." In the risk warning, the monetary Bureau of the people's Bank of China once again stressed that RMB is uniformly printed and issued by the people's Bank of China
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with the soaring price of virtual currency represented by bitcoin, digital currency and the blockchain technology behind it have attracted great attention of the global financial community. In fact, legal digital currency has not yet been issued in China. Recently, the official website of the monetary Bureau of the people's Bank of China (PBOC) released the risk warning on issuing or promoting digital currency in the name of the people's Bank of China
in 2013, the central bank, together with five ministries and commissions, issued the notice on prevention of bitcoin risks, which clearly defined non legal digital currencies such as bitcoin as virtual commodities, which do not exist in the form of currency and legal currency
At the same time, digital money is different from electronic payment. In the actual use experience, digital money and electronic payment may feel similar, but they are still quite different in essence. Before digital currency, the financial instry has been highly informationizedsuch as Internet banking, WeChat, Alipay and other payment electronic popularization graally, physical cash accounts for only a very small part of all circulating currencies. In spite of this, because the money used in the transaction comes from the bank account, it actually corresponds to the banknotes
currently, digital currency in the market involves multi-level marketing
digital currency is a new technology that can improve the efficiency of transaction, but it is targeted by lawless elements to carry out pyramid selling and fraud in its name
the official website of the monetary Bureau of the people's Bank of China issued the risk warning on issuing or promoting digital currency in the name of the people's Bank of China. The central bank pointed out that recently, indivial enterprises falsely used the name of our bank to label relevant digital procts as "authorized issuance by the people's Bank of China", or falsely claimed that the digital currency promotion team of the central bank issued, in an attempt to deceive the public and take the opportunity to make huge profits
in the risk warning, the central bank stressed that the bank has not issued legal digital currency, nor authorized any institutions and enterprises to issue legal digital currency, and there is no promotion team. At present, the so-called "digital currency" in the market is not legal digital currency
at the same time, the so-called "digital currency" launched by some institutions and enterprises and the so-called promotion of the central bank's issuance of digital currency may involve pyramid selling and fraud. The general public should raise their risk awareness, invest rationally and prudently, and prevent the interests from being damaged
the digital currency launched by the central bank is a national sovereign currency, which is based on the digitalization of RMB. This is a piece of data generated by a complex algorithm, which contains blockchain and encryption technology, making it unique. The payment of Alipay and WeChat is not digital money, but only based on the payment realized by electronic accounts. Compared with the current pattern of "payment transfer collection" with the help of third-party payment, what digital currency needs to achieve is "decentralization", that is, to cancel the transfer link and directly hand over the money from the payer's account to the payee, so as to rece the payment cost in currency circulation
types of digital currency
according to different issuing or consensus mechanisms, it can be divided into four categories:
1, proof of work (POW)
proof of work. The system rewards are obtained through the mining of computing power to complete the issuance and distribution of currency. More work, more gain. Such as bitcoin, lightcoin (LTC)
the advantage is that the mining cost can form a monetary price support to a certain extent, and the disadvantage is that energy consumption and environmental protection are criticized< 2. Proof of stake (POS). Allocate the newly generated currency or interest according to the amount and time of cryptocurrency you hold. Such as dash and Neo
compared with pow, POS is more energy-saving, but it increases the security risk
3. The evolution scheme of delegated proof of stake (dpos)
POS. Similar to the voting mechanism of the board of directors, through the election of representatives to vote and make decisions, n accounting nodes are elected to create, verify, sign and supervise each other. Such as the grapefruit coin (EOS)
the advantage is high efficiency, but the problem is that it presents a semi centralized state
4. POW + POS hybrid mechanism
POW is mainly used to issue currency, and POS is used to maintain the system. For example, PPC
according to the project type, it can also be divided into four categories:
1. Currency category
digital currency issued for the purpose of transfer, payment and value storage. For example, bitcoin, bitcoin cash (BCH), Monroe (XmR), and grin
2. Public chain currency, that is, the digital currency issued by public chain projects, is generally the "fuel" for the application projects to run on the public chain. Such as eth, grapefruit coin, TRX and ont
3. Application token, that is, digital currency issued by decentralized application projects, is equivalent to equity or points. For example, OMG (payment application), GXC (data application), 1st (game application)
4. Platform currency, that is, the digital currency issued by the digital currency exchange, is equivalent to equity, points or fuel. For example, BNB, HT and okb.