Digital money and money supply

1.

1、 Different definitions:

1. Electronic currency:

refers to the currency paid by electronic means

2. digital currency:

is a virtual currency based on node network and digital encryption algorithm

Electronic currency: Based on computer technology, it can be widely used in the fields of proction, exchange, distribution and consumption. It has many functions such as financial savings, credit and non cash settlement

2. Digital currency:

e to some open algorithms, digital currency has no issuers, so no one or institution can control its issuance; Because the number of algorithm solutions is fixed, the total amount of digital currency is fixed, which fundamentally eliminates the possibility of inflation caused by the overuse of virtual currency; Because the transaction process needs the approval of each node in the network, the transaction process of digital currency is safe enough

Third, the same point:

the circulation mode of e-money and digital money is two-way circulation

extended data

e-money is the virtualization of the value scale of real money and the function of payment means. It is a kind of money without monetary entity. Electronic currency is an invisible currency based on highly developed electronic technology

the value of e-money is transferred from the consumer to the seller through the sales terminal, and then the seller redeems the money. The e-money held by the merchant is sent to the e-money issuer to redeem the money, or to the bank. The bank debits the corresponding amount on its account, and then the bank settles with the issuer through the clearing institution

electronic money can transfer money value directly among the holders. It does not require the intervention of third parties, such as banks. This is also the essential difference between electronic money and traditional cash card and transfer card. p>

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.

The digital RMB red envelope of 10 million yuan issued by Shenzhen city has brought the development of e-money back to the people's vision

in fact, since April 2020, small-scale pilot projects of digital RMB have been carried out in Shenzhen, Cheng, Suzhou and xiong'an, and the pilot scale will be expanded to 28 provinces and cities in August 2020

as a socially recognized "super outlet", in addition to the high investment of digital currency related enterprises, its impact on the financial market is also of great research value

Policy evolution of the development of digital RMB

as early as 2014, the central bank has concted research layout on digital RMB, and discussed the development framework of digital RMB with major international financial institutions and research institutions in the 2016 digital currency seminar

after six years of development, China has initially developed the "pbctfp blockchain platform" and continuously promoted the pilot activities of digital RMB. It can be predicted that as today's technology and policy outlet, digital RMB will have excellent development prospects and extremely fast development speed in the next few years

Figure 1: Policy Evolution of digital RMB

with the improvement of China's national strength, digital RMB provides an opportunity to establish a "new system of RMB cross border settlement", which can promote RMB payment activities around the world and realize the internationalization of RMB

4. The total price of goods is a certain amount. First of all, it's faster than circulation. But it's certain that the circulation times of money will correspondingly rece their currency circulation, which is also that the circulation speed of money is faster than the circulation times

5. The definition and characteristics of virtual currency

the definition of traditional currency

traditional currency, that is, currency in the general sense, refers to the paper money and subsidiary currency issued by the central bank, which includes cash and deposits in circulation. Traditional currency has the functions of value scale, circulation means, payment means and storage means< (2) the definition and characteristics of virtual currency, also known as network currency, digital currency and electronic currency, is based on electronic information network, with commercial electronic machines and various transaction cards as the media, with electronic computer technology and communication technology as the means, and stored in the bank's computer system in the form of electronic data, And through the computer network system in the form of electronic information transmission to achieve circulation and payment function of money, is a new payment tool in the late 1990s

virtual currency is a currency symbol with no value of its own, and it is invisible. The exchange between the buyer and the seller is only reflected in the increase and decrease of the deposit balance in the bank account; At any time in any place that the network or device can cover, both parties can complete the transaction as long as there is exchange behavior; Virtual currency has the function of transcending time, space and region, which has greatly improved the speed and efficiency of money media transactions, greatly reced transaction costs, and promoted the process of globalization of capital flow and financial market integration. Virtual currency is a kind of non-standard currency, which has no geographical currency unit
the difference and connection between virtual currency and traditional currency

virtual currency combines cash in circulation with deposit organically by using electronic system. It has the characteristics of deposit in traditional currency, cash and non cash conversion and information display. In the scope of use, it is the same as the traditional currency, mainly used for small transactions; In commodity transaction payment, it also has the characteristics of autonomy of transaction behavior, consistency of transaction conditions, independence of transaction mode and sustainability of transaction process.

6. It shows that the total amount of this kind of digital currency is relatively large, and the total amount of many digital currencies is as high as 10 billion. The circulation of some MLM coins is not constant and can be increased or split at will. Moreover, there are many different digital currencies in the world, and the number of each digital currency is very considerable
the well-known digital currencies in the currency circle include bitcoin, Ruitai coin, Laite coin, doggy coin, etc.