How does the central bank's digital currency impact

1. The digital currency that the people's Bank of China plans to issue is monetary, which is endorsed by the government and has the basic characteristics of currency. Although these digital currencies draw lessons from the successful experience of bitcoin and other encrypted digital currencies, they have essential differences

the issuance of the central bank's digital currency will have a certain impact on the existing digital currency, but other digital currencies will continue to exist, but the road of development will be more bumpy, not only a means of speculation, but also an application. For example, the blockchain crowdfunding platform is the digital currency on China platform.

2.

1. High liquidity

every good and reliable digital currency is essential. Every digital currency should have strong liquidity, not only in the scope of third-party trading platform, but also in offline entities or countries like bitcoin

Second, lower volatility

generally, volatility comes from the influence of third-party trading platform, which is similar to stock trading. Strong operators need to control the market to prevent the digital currency market from soaring or plummeting. Therefore, the volatility of a digital currency can show whether the digital currency can develop stably

Third, tradability one of the most important properties of digital currency is tradability. If a digital currency does not have tradability, the digital currency is basically useless. Only when a digital currency has tradability can it have liquidity and volatility

Fourth, the nature of decentralization digital currency has the characteristics of decentralization. Digital money is neither controlled nor manipulated by centralized entities. That is to say, no indivial or third party can obtain the user's digital currency

Fifth, the value of digital currency is increasing based on the market demand. It is not subject to government regulation or operation, which is not like legal money. The rise and fall of digital currency price depends on the transactions between users on the third-party trading platform

3. The issue of digital currency has many benefits and is imperative. According to the central bank, digital money and paper money will coexist for a long time to come. When people go to the bank to withdraw money, they can not only withdraw cash directly, but also exchange it into digital currency. In Xiaobian's opinion, the establishment and issuance of digital currency system can not only make people's transactions more convenient and safe, but also graally weaken the proportion of paper money in the real circulation, which will also have a positive impact on the electronic disk of postal money card
when people are used to digital currency, paper money will graally withdraw from the circulation market and enter the collection field. In the new environment of payment and circulation, the traditional paper money will become a symbol of an era and a memory of people. The paper money that used to circulate in the market will also become a kind of cultural and artistic investment goods, active on the electronic disk of the post money card. And those earlier and even rarer coins will also stimulate their prices to rise in this situation. It can be seen that the central bank's graal promotion of digital currency will have a profound impact on people's living habits and investment and financial management, which is worth looking forward to Sohu)
however, digital currency does not have to be used for payment. Some domestic application-oriented digital currencies have begun to find another shortcut and come out with a different truth. For example, coin Ying China crowdfunding project token; Puyin group launched the tea based digital currency Puyin.

4.

1. High liquidity

high liquidity is essential for every good and reliable digital currency. Every digital currency should have strong liquidity, not only in the scope of third-party trading platform, but also in offline entities or countries like bitcoin

Second, lower volatility

generally, volatility comes from the influence of third-party trading platform, which is similar to stock trading. Strong operators need to control the market to prevent the digital currency market from soaring or plummeting. Therefore, the volatility of a digital currency can show whether the digital currency can develop stably

Third, tradability one of the most important properties of digital currency is tradability. If a digital currency does not have tradability, the digital currency is basically useless. Only when a digital currency has tradability can it have liquidity and volatility

Fourth, the nature of decentralization digital currency has the characteristics of decentralization. Digital money is neither controlled nor manipulated by centralized entities. That is to say, no indivial or third party can obtain the user's digital currency

Fifth, the value of digital currency is increasing based on the market demand. It is not subject to government regulation or operation, which is not like legal money. The rise and fall of digital currency price depends on the transactions between users on the third-party trading platform