Explanation of terms of government digital currency

1.

For many people, the concept of digital currency is a mystery. But there is no doubt that digital currency is different from virtual currency

At the same time, digital currency 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 informationized. Such as Internet banking, WeChat, Alipay and so on pay the popularization of electronic technology, physical cash accounts for only a very small part of the total circulation of money. In spite of this, because the money used in the transaction comes from the bank account, it actually corresponds to the banknotes

2.

Digital currency is a kind of legal tender, which must be issued by the central bank. Both digital gold coin and cryptocurrency belong to digital currency, which is not a network virtual currency, because it is not limited to virtual space, but is often used for real goods and services transactions, such as bitcoin, Wright coin, bitstock, etc. at present, there are thousands of digital currencies issued around the world

extended data:

1. Impact on financial infrastructure

the decentralized mechanism of value exchange based on distributed ledger technology has changed the basic settings of gross and net settlement on which financial market infrastructure depends. The use of distributed ledgers also poses challenges to trading, clearing and settlement, as it promotes the disintermediation of traditional service providers in different markets and infrastructures. These changes may have potential impacts on market infrastructure other than retail payment systems, such as large payment systems, securities settlement systems or trading databases

If digital currency and distributed ledger based technology are widely used, it will bring challenges to the intermediary role of financial system participants, especially banks. As a financial intermediary, banks perform the ties of acting supervisors and supervise borrowers on behalf of depositors. Usually, banks also carry out liquidity and maturity conversion business to realize the financing from depositors to borrowers. If digital currency and distributed ledger are widely used, any subsequent disintermediation may have an impact on savings or credit evaluation mechanisms

3.

Digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy

digital currency is different from the virtual currency in the virtual world, because it can be used for real goods and services transactions, not limited to online games. The early digital currency (digital gold currency) is a form of electronic currency named after the weight of gold. Today's digital currency, such as bitcoin, lightcoin and ppcoin, is an electronic currency created, issued and circulated by check sum cryptography. It is characterized by the use of P2P peer-to-peer network technology to issue, manage and circulate currency. In theory, it avoids bureaucratic examination and approval, so that everyone has the right to issue currency

Compared with paper money, digital money has obvious advantages, which can not only save the cost of issuance and circulation, but also improve the efficiency of transaction or investment, and enhance the convenience and transparency of economic transaction activities. The issue of digital currency by the central bank also ensures the continuity of financial policy and the integrity of monetary policy, and also ensures the security of monetary transactions

although the issuing method of digital currency is still under study, paper currency has been regarded as "the currency of the previous generation" by some professionals, and it is the general trend to be replaced by new technology and new procts. Due to China's large population and volume, the timetable for issuing digital currency is still uncertain. It is predicted that digital currency and cash will be in parallel and graally replaced for quite a long time. When the era of digital currency really comes, people will carry less and less cash, travel more and more safe, poverty alleviation more and more accurate, corruption more and more difficult to escape, and thieves more and more difficult

extended information:

in November 2016, the central bank prepared digital currency, and the cash is likely not to exist in ten years

in November 2016, China digital currency Research Institute was established to cultivate high-level talents of digital currency, carry out digital currency research, consultation, development planning and related activities. It is a non-profit unit with legal license approved by relevant ministries and commissions, and is committed to promoting the integrated development of scientific research and Practice of digital currency instry

so far, Hangzhou, Shenzhen and Guizhou have become the three hot areas for the central bank's digital currency pilot. It is reported that Hangzhou is actively promoting the planning and construction of Qiantang River financial harbor, including the blockchain instry. Hangzhou will build the first blockchain Instrial Park in China, which is located in the Internet Finance town of Xihu District, surrounded by ant financial services, e-commerce bank, Zhejiang University and its science and Technology Park and other well-known enterprises and parks

4. Digital wallet is a kind of software that enables users to pay for goods on the web. It holds credit card numbers and other personal information, such as shipping addresses. Once the data is entered, it is automatically transferred to the order domain of the merchant website. When using digital wallet, when consumers purchase goods, they don't need to fill in the orders on each site, because the information has been stored and automatically updated and entered the order domain of the manufacturer's site. Consumers can also benefit from using digital wallets because their information is encrypted, that is, protected by private software code. Businesses are protected from being cheated and benefit from it
for consumers, digital wallets are free and easy to get. For example, when a consumer makes a purchase on a merchant's website that has set up a server-side digital wallet, he enters his name, payment amount and delivery information into the merchant's own form. At the end of the purchase, he was asked to sign the user name and password for the wallet of his choice. Users can also get wallets from the wallet provider's site
although wallets are free for consumers, the suppliers charge the merchants for using wallets.

5. Gross domestic proct (GDP)
GDP refers to the value of all the final procts and services proced in the economy of a country or region in a certain period of time (a quarter or a year). It is often recognized as the best indicator to measure the economic situation of a country. It can not only reflect a country's economic performance, but also reflect a country's national strength and wealth< (1) GDP is an important comprehensive index in SNA accounting system, and it is also the core index in China's new national accounting system< (2) GDP is an indicator reflecting the results of proction activities of resident units. Resident unit refers to the economic unit with economic interest center in the economic territory of a country. Economic territory refers to the geographical territory controlled or owned by the government of a country. That is to say, on the basis of its own geographical scope, it should also include its embassies and consulates abroad, scientific research stations and aid institutions, and the above-mentioned institutions of foreign countries in the country should be dected accordingly (International institutions do not belong to permanent residence units of any country, but their employees belong to permanent residents of the country where they are located). Economic interest center refers to a unit or indivial who has a certain place of activity, engaged in certain proction and consumption activities in the economic territory of a country, and has been operating or living for more than one year. An institution or indivial can only have one economic interest center. Generally speaking, no matter which country controls its assets and management, an institution has a center of economic interests in its host country as long as it meets the above criteria. As far as an indivial is concerned, no matter which country his / her nationality belongs to, as long as he / she meets the above criteria, the resident has a center of economic interests in the country where he / she lives. Because the concept of permanent residence unit strictly defines the scope of a country's economic entities, it is of great significance to determine the calculation caliber of GDP, clarify the accounting boundaries between domestic and foreign countries, and the scope of various transaction volumes< In general, GDP has four different components, including consumption, private investment, government expenditure and net exports. The formula is:
GDP = Ca + I + CB + X, where CA is consumption, I is private investment, CB is government expenditure and X is net export

whether the economy of a country or region is in the stage of growth or recession can be observed from the change of this number. Generally speaking, there are no more than two forms of GDP announcement, with the total amount and percentage rate as the calculation unit. When the growth of GDP is positive, it shows that the regional economy is in the stage of expansion; On the contrary, if it is negative, it means that the economy of the region has entered a period of recession. GDP refers to the total amount of goods and services proced in a certain period of time multiplied by the "money price" or "market price", that is, nominal GDP, and the nominal GDP growth rate is equal to the sum of the real GDP growth rate and the inflation rate. Therefore, even if the total output does not increase and only the price level rises, the nominal GDP will still rise. In the case of rising prices, the rise of GDP is only an illusion, and the real GDP change rate has a substantial impact. Therefore, when using GDP as an indicator, we must adjust the nominal GDP through GDP rection index, so as to accurately reflect the actual change of output. Therefore, the increase of GDP deflator in a quarter is enough to show the inflation situation in that quarter. If the GDP deflator increases by a large margin, it will have a negative impact on the economy. At the same time, it is also a precursor to the tightening of money supply, the rise of interest rates and the rise of foreign exchange rate<

analysis of GDP indicators

a country's GDP has increased significantly, which reflects that the country's economic development is booming, the national income has increased, and the consumption capacity has also increased. In this case, it will be possible for the Central Bank of the country to raise interest rates and tighten the money supply. The good performance of the country's economy and the rise of interest rates will increase the attractiveness of the country's currency. Conversely, if a country's GDP shows negative growth, it indicates that the country's economy is in recession and its consumption power is reced. At this time, the country's central bank will probably cut interest rates to stimulate economic growth again. With the decline of interest rates and weak economic performance, the attractiveness of the country's currency will be reced. Therefore, generally speaking, high economic growth rate will promote the rise of domestic currency exchange rate, while low economic growth rate will cause the decline of domestic currency exchange rate. For example, from 1995 to 1999, the average annual GDP growth rate of the United States was 4.1%, while the GDP growth rates of the 11 countries in the euro area, except Ireland (9.0%), were only 2.2%, 1.5% and 1.2%, which were significantly lower than those of the United States. This prompted the euro's exchange rate against the US dollar to decline all the way since its launch on January 1, 1999, and it has depreciated by 30% in less than two years. But in fact, the difference of economic growth rate has many effects on the change of exchange rate:
first, a country's high economic growth rate means that the increase of income and domestic demand will increase the country's imports, resulting in a current account deficit, which will make the exchange rate of its currency fall

secondly, if the country's economy is export-oriented and its economic growth is to proce more export procts, the growth of exports will make up for the increase of imports and slow down the pressure of the decline of the domestic currency exchange rate< Thirdly, a country's high economic growth rate means that the labor proctivity increases rapidly and the cost decreases, so improving the competitive position of domestic procts is concive to increasing exports and restraining imports; And the high economic growth rate makes the country's currency in the foreign exchange market is optimistic, so the country's currency exchange rate will have an upward trend<

in the United States, the Ministry of commerce is responsible for the analysis and statistics of GDP, and the Convention is to estimate and count GDP quarterly. Every time after the preliminary estimates are published, there will be two revisions (the first revision & the final revision), mainly in the third week of each month. GDP is usually used to compare with the same period of last year. If there is an increase, it means that the economy is faster and it is concive to the appreciation of its currency; If there is a decrease, it means that the economy is slowing down and its currency will be under pressure to depreciate. In the case of the United States, a growth rate of 3% of GDP is the ideal level, indicating that economic development is healthy. Higher than this level indicates that there is inflationary pressure; Growth below 1.5% shows signs of economic slowdown and recession.

6.

Unemployment occurs when people are without work and actively looking for work is not included in this list. Source: Macroeconomics (7th Edition) as a percentage of the total number of people who work (except children, the elderly, who can't work). It is an important indicator of the capital market and belongs to the category of lagging indicators. The increase of unemployment rate is a signal of economic weakness, which can lead the government to relax monetary policy and stimulate economic growth; On the contrary, a decline in the unemployment rate will lead to inflation, which will make the central bank tighten monetary policy and rece money supply. In the United States, the Labor Department announced on the first Friday of each month that investors in the market are very concerned about it

in addition, the opposite of the unemployment rate is the employment data, the most representative of which is the non-agricultural employment data. The non-agricultural employment figure is an item in the unemployment figure. This item mainly counts the changes of jobs other than agricultural proction. It can reflect the development and growth of manufacturing instry and service instry. The decrease of the figure means that the proction of enterprises is reced and the economy is in depression. When the social economy is fast, consumption will naturally increase, and the number of jobs in consumer and service instries will increase. When the number of non-agricultural employment increases significantly, it should be theoretically beneficial to the exchange rate; On the contrary, it is the opposite. Therefore, the data is an important indicator to observe the degree and status of socio-economic and financial development

In the United States, the unemployment rate is released on the first Friday of each month. In Taiwan, it is announced by the accounting and Accounting Office of the Executive Yuan on the 23rd of each month. The monthly change of unemployment data can appropriately reflect the economic development. Most of the data are seasonally adjusted. Unemployment is seen as a lagging indicator

through this index, we can judge the employment situation of the whole labor force in a certain period. For a long time, the unemployment rate is regarded as an indicator reflecting the overall economic situation, and it is the first economic data published every month, so the unemployment rate indicator is called the & quot; of all economic indicators; The Pearl in the crown;, It is the most sensitive monthly economic indicator in the market. How to interpret this indicator? Generally speaking, the decline of unemployment rate represents the healthy development of the whole economy and is concive to currency appreciation; The rising unemployment rate means that economic development is slowing down and recession is not concive to currency appreciation. If we analyze the unemployment rate with the inflation index of the same period, we can know whether the economic development was overheated at that time, whether it would constitute the pressure of raising interest rates, or whether it was necessary to rece interest rates to stimulate economic development