Central banks issue digital currency What about bitcoin

1.

according to foreign media reports, with the growing popularity of bitcoin, central bank governors around the world have also expressed their views on this digital currency

Federal Reserve Bank of the United States

in December last year, at the monetary policy meeting of the Federal Reserve Bank of the United States, Janet Yellen, chairman of the Federal Reserve Board, was asked what she thought of bitcoin

According to Yellen, this kind of digital currency is a "highly speculative asset" and "cannot be legal tender". She added that it "plays a negligible role in the payment system" and that it "is not a stable store of value."

"the Federal Reserve Bank will not make any policy on bitcoin. Instead, we will only ensure that the banking institutions we supervise pay close attention to digital currency and properly manage their interaction with traders in the market. Moreover, we will monitor whether these banking institutions have fulfilled their responsibilities to combat money laundering and ensure the safety of banks. " Yellen said

at the end of November last year, Jerome Powell, who will replace Yellen as chairman of the Federal Reserve in February this year, also expressed his views on cryptocurrency. Cryptocurrencies "don't matter now" because "they're not big enough," he said

According to Powell, the financial risk brought by digital currency to the financial market is minimal“ They're not big enough, they don't matter now. " He said

European Central Bank

in October last year, Mario Draghi, President of the European Central Bank, said that cryptocurrency was not "mature" enough for the central bank to regulate management

"for anything new, people are always full of expectations, but also feel very uncertain. Now, as far as bitcoin and other cryptocurrencies are concerned, we don't think they are mature enough for us to consider standardized management. " He said

Draghi pointed out that tools like bitcoin have both advantages and disadvantages, and we need to weigh them carefully

"a lesson of the great financial crisis is financial innovation. As far as bitcoin is concerned, it is a financial and technological innovation. We should pay close attention to its potential risks while paying attention to it. " He said

Bank of Canada

in December last year, Stephen poloz, President of the Bank of Canada, also spent some time discussing cryptocurrency. He claims that buying digital currency is a gamble, not an investment

"perhaps no one can say clearly what their real value is. One can at most say that buying digital currency is buying risk. This makes it closer to gambling than investment. " "For people who want to buy cryptocurrency, what I want to say is that you should read the collateral to make sure you know what you're investing in," boloz said

According to boloz, the demand for digital currency will increase in the future. He added that the Central Bank of Canada was studying whether to issue its own digital currency

"bank staff are studying the conditions under which the central bank is more suitable to issue its own digital currency for retail transactions." He said

Reserve Bank of Australia

in December last year, Reserve Bank of Australia President Philip Lowe talked about bitcoin in a speech. He pointed out that this kind of digital currency will not be used in daily payment activities, and it can not be accepted so soon

According to Lowe, the reason is that the price of bitcoin is extremely unstable, the number of payments that can be processed at the same time is limited, the transaction and electricity costs are too high, and the management is too difficult

moreover, when bitcoin is only used as a payment tool, it "is more likely to attract those who want to trade in black or illegal economic activities."

Bank of Japan

at the end of 2017, Haruhiko Kuroda, President of Bank of Japan, said the price fluctuation of bitcoin was "extremely abnormal"

when asked if there will be a bubble in bitcoin, he replied, "I may not be qualified to evaluate it, but if you look at its trend, you will see that its price fluctuation is very abnormal. If you want to ask whether bitcoin has the same function as money, that is, as a payment or settlement tool, then my answer is No

investment should be cautious and private letter from mining machinery is needed

2.

To guard against the possible risks brought by bitcoin, we know that digital currency represented by bitcoin has high risks. This kind of risk is mainly reflected in two aspects: first, the limitation of digital currency makes it used as investment goods, and the price is extremely unstable. Those who do not understand the principle of digital currency and pay too much attention to speculation are easy to suffer losses for various reasons

Secondly, national digital currency is linked to its own legal currency to a certain extent, so it effectively avoids the price volatility of bitcoin. Because the CBDC issued by our country is guaranteed by the credit of the central bank, it must be a stable currency. In today's international situation, the research and development of digital currency in China is of great significance. The introction of digital currency is not an expedient measure, it has become the development direction of China's future currency

3. As far as I know, the central bank has not yet issued virtual currency, because the people's Bank of China said on the 21st that it will strive to issue digital currency as soon as possible. So there are many kinds of virtual currencies on the market, and the Liwu currency is not bad. You can study it. The move could help the yuan weaken the global dominance of the dollar and limit capital outflows.

4.

From the stable currency issued by banks, to the stable currency issued by Internet companies, to the present stable currency, all these mean that the future digital legal currency will come to people's vision and officially enter the stage of history, which will be initiated by central banks. Similar to the current public chains with different architectures, the digital currency of central banks will also use different technologies suitable for their national conditions. The digital currency of the central bank will explode in a certain period of time, which will make global trade more convenient, asset transfer will be extremely fast, and even drive the further development and innovation of traditional instries< but will bitcoin, the originator of digital currency, be replaced by central bank digital currency? Here mainly from the following aspects of analysis

3. Payment function and there will be certain restrictions on the payment function of the central bank's digital currency. If the comprehensive liberalization policy is implemented, it means that the exchange of legal currencies between countries is less regulated, so it may also cause large-scale capital loss, Therefore, the payment function of the central bank's digital currency may only be limited to specific regions and countries and cannot be spread out at will, which will also have an impact on its function

because bitcoin is a free digital currency, there are no restrictions on its use. Anyone can use bitcoin for value storage , which also facilitates more people who need money exchange. However, e to the high degree of freedom of bitcoin, the exchange rate between bitcoin and legal currency has certain volatility, As a result, the behavior of currency speculation also occurs. In different periods, legal currency and digital currency have different exchange rates. Therefore, bitcoin can only be used as a payment type digital currency in the short term, and can only be used as an investment proct in the long term. The two attributes of investment and payment are opposite to each other, This will continue for a long time to come

5. It seems that there is no other way to play, like bitcoin and so on, all use mining machine

6. Yes, bitcoin, which has not yet been legalized in China, will face competition with the digital currency supported by the Chinese government
(1) the purpose of the digital currency issued by the Central Bank of China is to make it easier for the central bank to monitor the flow of funds and manage the use of funds more effectively
(2) in addition, global financial institutions are widely embracing digital currency, among which China is one of the main countries. It is actively exploring and issuing their digital currency, improving the efficiency and transparency of domestic global payment system, so as to curb the outflow of up to US $843 billion annually.

7. Digital currency is written into the draft of the fourteenth five year plan of many places. Experts suggest that the pilot scope of digital RMB should be expanded. The central bank's currency or currency can better prevent money laundering, facilitate better supervision, and be more concive to the circulation of money, so as to improve the effect of wealth flow. Digital currency has become a hot word of local "two sessions", At present, bitcoin is more of a kind of speculation and investment assets, and it has also derived financial investment speculative procts based on bitcoin combined with traditional finance. Only in form, it is more innovative and radical than the traditional way, which is more in line with the characteristics of people's fast pace
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8. In essence, the digital currency issued by the central bank is still legal currency, which is just electronic. It does not have the advantages of bitcoin and other virtual currencies.

9. I think it's normal for this kind of part-time job to make less and less profits. It's the same for some profitable apps. It's very easy to make money at the beginning, but it's more and more difficult. More and more people are involved