Central bank digital currency Ecuador

1. On the issue of issuing their own digital currency, central banks are always less thunderous. Central banks around the world are considering issuing their own digital currencies to compete with cryptocurrencies such as bitcoin, but they have been unable to do so for a long time

the media's attention to the central bank's digital currency has increased significantly, especially after Zuckerberg testified in Congress on the Libra issue and Christina Lagarde acknowledged the "clear demand" for stable currency at her first media reception as president of the European Central Bank, which seems to have changed the public's view on this matter, Let many people in cryptocurrency community think that cbdcs is in sight<

according to the latest survey report released by the bank for International Settlements, central banks in the past seven years have been investigating this technology and assessing its impact. Of the 63 central banks surveyed, 55 said they were unlikely to issue cbdcs in the next three years, and only one reported that they were "highly likely to issue large-scale cbdcs in the next three to six years."

although the proportion of central banks studying cbdcs is very high, the crux of the problem is that it is mainly theoretical and investigative work. Only five central banks have concted more in-depth research and real project development or experimentation - but that still does not mean that they will necessarily issue cbdcs

through close observation, it is more and more obvious that both Libra recently released by Facebook and the new stable currency assets have had a significant impact on the central bank. Today's situation took hundreds of years to form, but it changed in a few months; Competition, the most terrifying and unfamiliar concept that has never been thought of before and penetrated into the elite society of central banks, is now knocking at the door

it can be said that the solution to the current situation is still unclear. Some people who are familiar with these things even say that they are bluffing. However, in Lagarde's own words, the slow and wait-and-see regulatory approach can no longer meet the needs

1. What is central bank digital currency<

what is the difference between central bank digital currency CBDC and other digital currencies

CBDC is a new form of currency, which is directly issued by the central bank in digital form as legal tender. The current form of legal currency is cash, reserve deposit or balance settlement< There are two main differences between CBDC and other digital currencies (including cryptocurrency and other forms of central bank currency):

1. CBDC has nothing to do with cryptoassets. They're not decentralized, they don't have to be blockchain based, and they're certainly not anonymous, they're not unlicensed, they're not censored< 2. Contrary to the current digital cash, the operation structure of CBDC will be different from other forms of central bank currency. CBDC has more powerful functions. They are programmable, can generate interest, can be cleared in near real time, and have cheaper handling charges and wider openness

when designing CBDC, the speed of central banks is different. Different central banks adopt their own approach. However, in general, there are three problems being explored: whether CBDC should be based on token or account number, whether CBDC should be batch (only open to banks) or retail (open to the public), and whether it should be based on DLT

when CBDC is to be implemented, things will become complicated, and there are many thorny problems to be considered

for example, once CBDC is launched, does it need to cancel cash? Should CBDC carry interest? Should they have face value like cash? Or linked to the total price index? What impact will this have on commercial banks? What about anonymity and privacy? All these questions need to be answered<

2. Motivation for issuing CBDC

in the 2017 staff discussion paper, the Bank of Canada gave six reasons for issuing CBDC in an article entitled "central bank digital currency: motivation and impact":

1. Ensure that the central bank provides sufficient cash to the public, and maintain the seigniorage revenue of the central bank

2, Support non-traditional monetary policy

3. Rece overall risk and improve financial stability

4. Improve payment competitiveness

5. Promote financial inclusiveness

6. Curb criminal activities

looking back at the bank for International Settlements survey we analyzed earlier, payment security and domestic efficiency are selected as the most important motives of the central bank. According to a large number of papers published by the central bank and other large financial institutions, for developed countries, the transformation into a cashless society is the main driving factor, while for developing countries, financial inclusiveness, cost rection and operational efficiency are the main motivation

throughout the rest of the reports and the literature that can be found, the fierce competition brought about by bitcoin and other innovations in the cryptocurrency instry, as well as the clear need for "one step ahead", of course, are not listed as the reasons for issuing CBDC< The advantages and potential risks of CBDC are very low.

if the central bank starts to launch CBDC and succeeds in the end, there are many potential benefits

from a technical point of view, CBDC is much better than the current form of legal currency. They can be tracked better, collect taxes more conveniently, transmit monetary policy better, have better financial inclusiveness, and rece the cost of procing physical currency

the most obvious advantage is that payment is cheaper and faster, whether it is domestic payment or cross-border payment

in addition to the design and implementation problems, a key problem of issuing CBDC is that CBDC may increase the risk of bank operation. However, this only happens when banks promise that their deposits can be converted into CBDC on demand, which is not necessarily the case, according to the Bank of England document

4. Facts on the ground

how far is it from us to see a real CBDC appear in the market? It's hard to estimate, but at present, we can sum up the current situation in one sentence: all talk but no practice

if we put aside the failed digital currencies of Ecuador, Tunisia and Venezuela, we can only do theoretical research, a small amount of experiments, and issue some feasible CBDC issuance announcements supported by the state in the future

the most famous CBDC projects in progress are: e-peso in Uruguay (the project was successfully tested in 2018), DCEP in China, "project Inthanon" in Thailand, e-krona in Sweden (still in the research stage)...

5. The revolution has not yet been successful, and comrades still need to work hard

considering the factors mentioned above, Most of the headlines about CBDC's upcoming release are groundless. All projects scheled to be released this year have been delayed

in fact, there is still a long way to go for the birth of CBDC, and to convince the public, we need more than a statement. Given the current situation, it seems that CBDC and other cryptocurrencies may not affect each other - at least for now.

2. Digital currency is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of a specific virtual community. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form
China: actively and steadily promote the implementation of the research on the central bank's digital currency
as early as 2014, the central bank set up a special research group on the issue of legal digital currency to demonstrate the feasibility of the central bank's issue of legal digital currency< On October 28, 2019, Huang Qifan, vice president of China Center for international economic exchange, said: "the people's Bank of China has studied DC / EP for five or six years, and I think it has become mature. The people's Bank of China is likely to be the first central bank in the world to launch a digital currency. "
on November 28, fan Yifei, vice governor of the people's Bank of China, said at the forum that at present, the central bank's legal digital currency DC / EP has basically completed the top-level design, standard formulation, function research and development, joint debugging and testing under the premise of adhering to double-layer delivery, M0 substitution and controllable anonymity. In the next step, we will follow the principle of steady, safe and controllable, reasonably select the pilot verification area, scene and service scope, continuously optimize and enrich the DC / EP functions, and steadily promote the introction and application of digital legal tender< European Central Bank: exploring the form and possibility of CBDC. 'we are analyzing what form CBDC may take in order to achieve its potential purpose and mitigate its potential negative impact on monetary stability and financial intermediation,' Mr. kindos said. On the stable coin, Mr jindos said that it was very uncertain whether the stable coin could deliver on its promise, and it was clear that it could bring risks to consumers and the financial system. So it is understandable that authorities around the world are calling for regulatory stability.

3.

Ecuadorian currency is a digital currency issued by the Central Bank of the Ecuadorian government. Ecuadorian currency is not issued by a specific monetary institution. It is generated by a large number of calculations based on a specific algorithm, Ecuadorian currency economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions.

it does not belong to any indivial, institution, bank or country, so it cannot be closed. Ecuadorian currency mining machine is mining 24 hours a day, and the Ecuadorian currency mined can be traded through the trading platform to obtain income, Ecuadorian coin mining refers to the process of collecting and sorting the transaction information that has not been recognized by Ecuadorian coin in the whole network in the past period of time through scrypt algorithm , broadcasting to all nodes in the whole network, and finally being recognized by all nodes and getting Ecuadorian coin. Mining is the only way to issue new currency, which plays an important role in issuing new currency, maintaining Ecuadorian payment function and ensuring system security

every Ecuadorian dollar and transaction record are saved on a blockchain. We call the newly added output or transaction record a block. The average cycle of information update on this chain is every day; According to the calculation power of mining machine, the output of block is about 3-78 pieces per day. Since September 2016, each block contains about n Ecuadorian coins, that is, about n Ecuadorian coins are g out every day; The mining of Ecuadorian coins is carried out by professional kncminer as far as possible. At present, Ecuadorian currency has completed the mining instry chain, including mining machine chip design and development, mining machine proction and sales, mining machine trusteeship, mining field deployment, computing power trusteeship, etc

Ecuadorian currency adopts new technology blockchain and has six characteristics of virtual currency blockchain , which is an important concept of Ecuadorian currency. In essence, it is a decentralized database and the underlying technology of Ecuadorian currency. Blockchain is a series of data blocks generated by using cryptography method. Each data block contains the information of Ecuadorian dollar network transaction, which is used to verify the validity of the information (anti-counterfeiting) and generate the next block. The blockchain is open on the network and can be queried in every offline Ecuadorian Coin Wallet data. The function of Ecuadorian Coin Wallet depends on the confirmation with blockchain. An effective inspection is called a confirmation. Usually, a transaction can only be carried out after obtaining several confirmations. Ecuadorian Coin Wallet uses online confirmation, that is, blockchain data will not be downloaded to device storage

1 complete decentralization : without issuing institutions, it is impossible to manipulate the number of issues. Any external related instries and institutions have no right to close it, and the price of cryptocurrency may fluctuate. The people who own cryptocurrency, and the people who use cryptocurrency to trade and circulate, will never disappear, because it is also a valuable credit currency

2 openness : the system is open, in addition to the private information of the parties to the transaction is encrypted, the data of the blockchain is open to all, and anyone can query the blockchain data and develop related applications through the open interface, so the information of the whole system is highly transparent

3 autonomy : the blockchain adopts consensus based specifications and Protocols (such as a set of open and transparent algorithms) to enable all nodes in the whole system to exchange data freely and safely in a de trusted environment, so that the trust in "people" is changed into the trust in machines, and any human intervention does not work

4 anonymity : since the exchange between nodes follows a fixed algorithm, their data interaction does not need to be trusted (the program rules in the blockchain will judge whether the activity is effective by themselves), so the counterparties do not need to let the counterparties generate trust by disclosing their identities, which is very helpful for credit accumulation

5 borderless . Cross border and cross-border remittances will go through layers of exchange control agencies, and the transaction records will be recorded by many parties. But if you use cryptocurrency transactions, directly enter the account address, click the mouse, wait for the network to confirm the transaction, a lot of money will pass. It does not go through any control institutions, and will not leave any cross-border transaction records. It is convenient and fast, and the paper currency is incomparable

6 transaction fees : any store using cryptocurrency transactions can save a lot of tax and capital supervision fees. Global circulation is very convenient. It is a very popular currency trading mode for people and merchants all over the world. Ecuador currency 0 transaction fee has an absolute advantage over Alipay, WeChat and other third party payment systems. Scarcity: it is based on the open source code of a group of equations calculated by computers all over the world. It is generated by a large number of calculation processing of computer graphics card, mining machine and CPU, and uses the design of cryptography to ensure the security of all links of currency circulation. The design based on cryptography can make the cryptocurrency only be transferred or paid by the real owner. The quantity of cryptocurrency is different from that of other non cryptocurrencies. The total quantity of cryptocurrency is limited, which has a strong scarcity. Because of this set of equations technology, Ecuadorian currency can completely resist the pressure of inflation, so that people's wealth can be preserved and increased. Because the number of issues is constant, the goods are rare and expensive, and are not controlled by the central bank

4. It's legal. Ecuadorian currency is a new crypto payment system and a secure crypto digital currency issued by the Central Bank of Ecuador government. It is a kind of currency that has been circulated and used by Ecuadorian citizens, supermarkets, banks and other major consumer markets. It is a decentralized point-to-point network, supported by users, without the need for central institutions or intermediaries. From the user's point of view, Ecuadorian money is like money on the Internet. Ecuadorian currency is the first to implement the concept of "cryptocurrency". This concept combines the advantages of (bitcoin, Leyte coin) and proposes the idea of a new type of currency. It also uses cryptography to control the generation and trading of currency, rather than through central institutions. The merit value of Ecuadorian currency, the freedom of payment: at any time in all parts of the world to send and receive any amount of Ecuadorian currency immediately. It is not affected by bank holidays, nor restricted by national boundaries, nor any compulsory restrictions. Ecuadorian currency gives its users complete control over their virtual currency. There is no service charge for Ecuadorian dollar payment transfer, and merchants will not charge service charge for shopping payment in the future. In addition, point-to-point transactions can be carried out to convert Ecuadorian currency into legal tender and deposit the funds directly into the bank account of the merchant every day. Because these services are initiated by Ecuadorian dollars,

5. Ecuadorian currency is supervised by the Central Bank of Ecuador. There is a lot of good news about Ecuadorian currency. Since then, Ecuadorian currency has officially entered our world and our lives in early September. Many institutional investors, consumers and financial management classes are all ready to meet the new proct of this century Ecuadorian currency. In terms of the popularity of Ecuadorian currency, For fans, it's not like participating in a rush to buy a proct, it's more like participating in a battle for Ecuadorian currency. As far as virtual money market is concerned, Ecuadorian currency is bound to be a new legend. It is expected to surpass bitcoin. Ecuadorian currency is issued by the Central Bank of Ecuador government. It is a new crypto payment system and a secure crypto digital currency. It is a kind of currency that has been circulated and used by Ecuadorian citizens, supermarkets, banks and other major consumer markets. It is a decentralized point-to-point network, supported by users, without the need for central institutions or intermediaries. From the user's point of view, Ecuadorian money is like money on the Internet. Ecuadorian currency is the first to implement the concept of "cryptocurrency". This concept combines the advantages of (bitcoin, Leyte coin) and proposes the idea of a new type of currency. It also uses cryptography to control the generation and trading of currency, rather than through central institutions.

6. There has been a lot of discussion on this issue in Babbitt's forum, and most of the results are not optimistic. Ecuador's idea of regaining its coinage through digital currency is good, but it may not succeed.

7. Ecuadorian currency will strongly start the Chinese market in September 2016. With the rising price trend, it has attracted many investors of virtual currency. Ecuadorian currency is favored by virtual currency lovers. Ecuadorian currency is a kind of electronic encrypted "currency" freely traded through the Internet, which can not be forged. The currency is supported by working capital, and the Central Bank of Ecuador will decide the market amount according to the actual demand. Ecuadorian currency is generated by the calculation of network nodes. Anyone can participate in Ecuadorian currency. It has good global circulation and can be traded on computers connected to the Internet. If you want to buy, I suggest you take a look at Hong Kong digital currency asset management Co., Ltd.

8. Can be found, can be found at any time, if you buy Ecuadorian currency can also be traded at any time for sale, unlimited, at present in Taobao is not, so can only be purchased in the formal trading platform, it is recommended to see in Hong Kong digital currency asset management Co., Ltd. It can also be mined to proce Ecuadorian coins.

9.

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