The challenge of digital currency to monetary authority
Publish: 2021-03-30 03:07:37
1. Legal risks faced by digital currency: (1) at the macro level, there are legal risks, systematic risks and consumer protection. At present, the legislative problems of e-commerce and e-payment have not been solved, the concept of e-currency and related provisions need to be clarified, and many laws and regulations have not been followed up. Secondly, there is a systemic risk caused by the collapse of a single issuing institution. If a certain issuing institution loses confidence in e-money e to its poor management, other e-money issuing institutions will also face run risk. Moreover, in the absence of standardized supervision, it is difficult for the public to effectively identify the qualification and credit level of issuers. How to effectively prompt risks and protect the rights and interests of the public has become a difficult problem. In addition, the concealment, rapidity and cross-border nature of Internet payment make e-money an inevitable money laundering tool for criminals 2 At the micro level, there are technical risks and credit risks in the main body of e-money issuance. The issuers of e-money in China include banks, non bank financial institutions, Internet enterprises and other enterprises. Due to the weak financial professional foundation of some issuers, especially the lack of mandatory technical security standards in China, there are serious management loopholes and security risks in e-money issuers. System software or hardware failures will affect the availability of e-money. Secondly, the unreasonable structure of assets and liabilities and high concentration of investment will lead to the lack of liquidity and the risk of default. In addition, the payment and circulation of e-money rely heavily on all kinds of networks, and there are all kinds of operational risks, such as deliberate embezzlement of other people's accounts, internal crimes of issuing institutions and malicious intrusion of hackers, which will damage the interests of e-money holders. bitcoin, Ruitai and other digital currencies are suitable.
2. The traditional electronic payment system is built on the basis of credit, relying on the centralized third-party institutions to complete. Digital currency technology such as bitcoin can effectively integrate electronic payment with decentralized system
the monetary property of digital currency has attracted a lot of attention, and the distributed accounting system behind the payment system is undoubtedly a more attractive innovation. In view of the fact that bank deposits and other financial assets are only in pure digital form, this just provides a broader opportunity for distributed accounting system to change the whole financial system
money and payment system are naturally linked. The payment system, the medium of transaction, must be safe and reliable. Any trading system needs an accounting system to record the assets you own in the system
modern payment systems usually use computers to store data. To put it bluntly, the money you deposit in the bank is a series of numbers recorded in the bank account
this article will focus on the recent innovative events in the field of payment, such as bitcoin, a global digital currency, which skillfully integrates the most perfect payment system with the most perfect currency. Users can rely on it to complete the exchange of legal money, commodity trading, purchase services and other activities without the participation of third-party institutions (such as banks). Its innovation lies in that it is not controlled by any centralized banks
bitcoin, the largest digital currency at present, was founded in 2009 and has been supported by thousands of businesses around the world, from pizza to virtual host. Most digital currencies, including bitcoin, have a fixed supply set. This chapter will give a brief introction to its working principle. It will give you a brief introction on how to strengthen the secure payment system with technical means, evaluate the possibility that the old payment system should be replaced by new technology, explain how the distributed accounting system removes many problems in the existing system, and explore new areas where new technology may be applied
many media reported that bitcoin only reported the discussion on its currency property and price. This paper focuses on the revolutionary innovation of the payment system brought by the distributed accounting system of digital currency - the payment system without the participation of any centralized institutions. These innovations can also be expanded in other areas, such as encrypted communications, decision-making, P2P networks
central banks have the responsibility to stabilize their monetary and payment systems to ensure the stable operation of the economy. The recent innovation in payment technology has been related to the topic of "digital currency". Most of the payment systems in today's economies follow the pattern of centuries ago, that is, they use centralized institutions to carry out secured transactions. For example, the Jinpu bank appeared in the 16th century. People can exchange physical gold for gold tickets, which can be used as gold coins or gold coins, but can not be used across banks. With the requirements of social development, there is an increasingly urgent need for an inter-bank payment system, now the practice is a variety of UnionPay organizations
bitcoin, Ruitai coin, Weimeng coin, Laite coin and other digital currencies may disappear in the future, because now it is only a small experiment, but this idea may continue.
the monetary property of digital currency has attracted a lot of attention, and the distributed accounting system behind the payment system is undoubtedly a more attractive innovation. In view of the fact that bank deposits and other financial assets are only in pure digital form, this just provides a broader opportunity for distributed accounting system to change the whole financial system
money and payment system are naturally linked. The payment system, the medium of transaction, must be safe and reliable. Any trading system needs an accounting system to record the assets you own in the system
modern payment systems usually use computers to store data. To put it bluntly, the money you deposit in the bank is a series of numbers recorded in the bank account
this article will focus on the recent innovative events in the field of payment, such as bitcoin, a global digital currency, which skillfully integrates the most perfect payment system with the most perfect currency. Users can rely on it to complete the exchange of legal money, commodity trading, purchase services and other activities without the participation of third-party institutions (such as banks). Its innovation lies in that it is not controlled by any centralized banks
bitcoin, the largest digital currency at present, was founded in 2009 and has been supported by thousands of businesses around the world, from pizza to virtual host. Most digital currencies, including bitcoin, have a fixed supply set. This chapter will give a brief introction to its working principle. It will give you a brief introction on how to strengthen the secure payment system with technical means, evaluate the possibility that the old payment system should be replaced by new technology, explain how the distributed accounting system removes many problems in the existing system, and explore new areas where new technology may be applied
many media reported that bitcoin only reported the discussion on its currency property and price. This paper focuses on the revolutionary innovation of the payment system brought by the distributed accounting system of digital currency - the payment system without the participation of any centralized institutions. These innovations can also be expanded in other areas, such as encrypted communications, decision-making, P2P networks
central banks have the responsibility to stabilize their monetary and payment systems to ensure the stable operation of the economy. The recent innovation in payment technology has been related to the topic of "digital currency". Most of the payment systems in today's economies follow the pattern of centuries ago, that is, they use centralized institutions to carry out secured transactions. For example, the Jinpu bank appeared in the 16th century. People can exchange physical gold for gold tickets, which can be used as gold coins or gold coins, but can not be used across banks. With the requirements of social development, there is an increasingly urgent need for an inter-bank payment system, now the practice is a variety of UnionPay organizations
bitcoin, Ruitai coin, Weimeng coin, Laite coin and other digital currencies may disappear in the future, because now it is only a small experiment, but this idea may continue.
3.
At present, there are mainly two regulations about virtual currency in China. In 2013, many ministries and commissions issued the notice on prevention of bitcoin risk, giving important tips on bitcoin risk. On September 4, 2017, the central bank and other seven ministries and commissions jointly announced again that the first token issue was an unauthorized illegal financing
According to Zhao, there are various ways to launder money by using digital currency. For example, technical means may be used to transfer funds into the cryptocurrency system, and then deploy various transfer addresses, making it difficult to query its transaction path. In other words, money laundering promoted by technological progress is more and more difficult to be detected and prevented. In addition, it has cross regional characteristics, and the lack of global response mechanism exacerbates this situation4. The future world will be a digital world, and money will develop from paper money in the past to digital money in the future, which is a trend. Because in order to adapt to the digital world, the future currency must also be digital. It can be predicted that digital currency will be safer, faster and more convenient in the future
many procts of blockchain technology are not currency, although they are called currency. Under the guise of digital currency investment, it is a Ponzi scheme. Even some of them don't even have blockchain technology, which is just a fake number to cheat people.
many procts of blockchain technology are not currency, although they are called currency. Under the guise of digital currency investment, it is a Ponzi scheme. Even some of them don't even have blockchain technology, which is just a fake number to cheat people.
5. Digital currency is a kind of data structure, which combines data blocks in chronological order. Digital currency is a public account book that can not be tampered with or forged by means of cryptography
we can understand that digital currency is an account book containing all historical transactions. Each block will have several transaction records, which can be viewed by all participants. Each participant of digital currency has to maintain this account book together, Digital currency is a collection of transaction data
for example, in the field of digital currency bitcoin, there will be the concept of "miner". Miner needs to constantly repeat operations to generate workload, and each miner has competition. It needs to complete a mathematical problem based on cryptographic hash algorithm. The answer is in the area, if who works out the answer first, So who can broadcast in the network that he has obtained this block, other miners will not go to this block for mining, but will work in the next block. Miners will have more transaction costs in his block, and they will generate what we call digital currency bitcoin as a reward, and then they will go to their own digital currency bitcoin account
there is no problem with digital currency itself. There may be criminals using digital currency as a cover to cheat, which needs to be carefully screened
1. The volume of digital currency is too large. With the development of digital currency, the volume of digital currency stored in nodes is becoming larger and larger, and the computing burden is also increasing. Colleagues have also caused a lot of impact on the operation of digital currency bitcoin client
2. There is a problem with the data confirmation time. The time for a digital currency bitcoin transaction is about 10 minutes. If we confirm six times, we need to wait for an hour, which is a long time;
we can understand that digital currency is an account book containing all historical transactions. Each block will have several transaction records, which can be viewed by all participants. Each participant of digital currency has to maintain this account book together, Digital currency is a collection of transaction data
for example, in the field of digital currency bitcoin, there will be the concept of "miner". Miner needs to constantly repeat operations to generate workload, and each miner has competition. It needs to complete a mathematical problem based on cryptographic hash algorithm. The answer is in the area, if who works out the answer first, So who can broadcast in the network that he has obtained this block, other miners will not go to this block for mining, but will work in the next block. Miners will have more transaction costs in his block, and they will generate what we call digital currency bitcoin as a reward, and then they will go to their own digital currency bitcoin account
there is no problem with digital currency itself. There may be criminals using digital currency as a cover to cheat, which needs to be carefully screened
1. The volume of digital currency is too large. With the development of digital currency, the volume of digital currency stored in nodes is becoming larger and larger, and the computing burden is also increasing. Colleagues have also caused a lot of impact on the operation of digital currency bitcoin client
2. There is a problem with the data confirmation time. The time for a digital currency bitcoin transaction is about 10 minutes. If we confirm six times, we need to wait for an hour, which is a long time;
6. Looking back on the whole course of money development, every evolution of money form has greatly promoted the development of circulation
there are ecological changes in personal consumption, business operation and banking.
there are ecological changes in personal consumption, business operation and banking.
7. For ordinary people, it is more convenient for us to travel, so mobile phone should be an indispensable tool for human beings.
8. The future world will be a digital world, and money will develop from paper money in the past to digital money in the future, which is a trend. Because in order to adapt to the digital world, the future currency must also be digital. It can be predicted that digital currency will be safer, faster and more convenient in the future. Now many blockchain technology procts, although its name is what currency, but in fact it is not currency. Under the guise of digital currency investment, it is a Ponzi scheme. Even some of them don't even have blockchain technology, which is just a fake number to cheat people.
9. The core value of CBDC can be summarized as four points: first, the original purpose is to let the central bank better manage money creation and supply, enhance the effectiveness of monetary policy transmission mechanism and better deal with the business cycle. Second, the construction of payment and clearing infrastructure based on blockchain related technologies can rece costs and increase efficiency. Digital currency can greatly rece the cost of currency issuance, circulation, use and other links, and realize banknote free transactions, which is also in line with the current trend of rapid development of electronic payment. Third, it has given the central bank stronger control over the monetary system, such as KFC, anti money laundering, anti-terrorism financing, and some targeted policies. Before the launch of Libra, the central bank attached importance to CBDC mainly for the above three purposes. But now, the significance of CBDC in promoting the internationalization of RMB has become more important than ever. This is the fourth purpose of the central bank. Judging from the current progress of RMB internationalization, there are indeed many difficulties. One is the US led encirclement and interception, and the other is the turbulence in the stock and exchange markets. In order to break the encirclement led by the United States, realize the normal development of the stock exchange market and the foreign exchange market, and realize the internationalization of RMB, it is really a good way for the central bank to issue digital currency. On the 10th anniversary of RMB internationalization, RMB internationalization has made remarkable achievements. 13 international financial institutions around the world began to pay attention to China's bond market. In the tide of interest rate rection in developed countries, negative interest rate has become a conventional means, and China's bonds are very competitive in the world. As of the second quarter of 2019, 38 countries have signed currency swap agreements with China, with a total amount of 3.67 trillion yuan. The one belt, one road, which one belt, one road to push forward, is continuously creating demand for RMB internationalization, and the export of RMB has become an important means of "one belt and one road" internationalization of RMB. In addition, RMB is one of the most active currencies in the global foreign exchange market, and London has surpassed Hong Kong as the world's largest offshore RMB foreign exchange trading center. With the steady development of China's economy, RMB assets will continue to be favored by all countries in the world< One belt, one road or other friendly country, was also shared by the Central Bank of China when it issued the CBDC. It shared some of the mint rights with br />
CBDC. How to participate? Including the following two cases, let's take Kazakhstan as an example. The first is that Kazakhstan can issue RMB denominated Kazakh government bonds. The issuer is Kazakhstan, but the RMB denominated bonds are sovereign bonds for Kazakhstan, which can also be sold to the Central Bank of China in exchange for CBDC. The second is that Kazakhstan issues treasury bonds denominated in its own currency, which are issued by Kazakhstan and priced in its own currency. This method is the easiest for Kazakhstan, because this is their own national debt, which is sold to the Central Bank of China, which gives it CBDC. The similarities between the two lie in that they both sell treasury bonds to the Central Bank of China, but the issuers of treasury bonds are not the same, and the pricing currencies of treasury bonds are not the same, so the requirements for Kazakhstan are not the same. In theory, these ways can be used as a political tool to influence and regulate the relationship between the Chinese government and Kazakhstan<
4 digital currency will become the biggest magic weapon of RMB internationalization
China is now facing the biggest challenge, in terms of currency, in fact, the internationalization of RMB. The monetary settlement system based on US dollar has brought great problems to the decision-makers outside the US dollar. The best way to rece the status of US dollar is to replace us dollar with a global digital currency to end the dominant advantage of US dollar. The Chinese version of CBDC is likely to become the biggest magic weapon to promote the internationalization of RMB and end the hegemony of US dollar. The opportunity for RMB internationalization lies in the trend of de dollarization. Therefore, we need friendly countries other than US dollars to participate in China's digital currency. Taking the lead in the use of digital currency in block trading and financial settlement to bypass the restrictions on trading in US dollar will certainly realize the development of de dollarization and form a new currency trading system dominated by China and participated by many parties. So how to achieve it? In essence, it is to transfer benefits, so that non dollarized friendly countries can participate in the issuance process of CBDC, and even share the seigniorage of RMB. It is the most effective magic weapon to embody the spirit of democratization and benefit sharing of blockchain and bitcoin in the design of sovereign currency, which is also the most practical way to realize the internationalization of RMB.
CBDC. How to participate? Including the following two cases, let's take Kazakhstan as an example. The first is that Kazakhstan can issue RMB denominated Kazakh government bonds. The issuer is Kazakhstan, but the RMB denominated bonds are sovereign bonds for Kazakhstan, which can also be sold to the Central Bank of China in exchange for CBDC. The second is that Kazakhstan issues treasury bonds denominated in its own currency, which are issued by Kazakhstan and priced in its own currency. This method is the easiest for Kazakhstan, because this is their own national debt, which is sold to the Central Bank of China, which gives it CBDC. The similarities between the two lie in that they both sell treasury bonds to the Central Bank of China, but the issuers of treasury bonds are not the same, and the pricing currencies of treasury bonds are not the same, so the requirements for Kazakhstan are not the same. In theory, these ways can be used as a political tool to influence and regulate the relationship between the Chinese government and Kazakhstan<
4 digital currency will become the biggest magic weapon of RMB internationalization
China is now facing the biggest challenge, in terms of currency, in fact, the internationalization of RMB. The monetary settlement system based on US dollar has brought great problems to the decision-makers outside the US dollar. The best way to rece the status of US dollar is to replace us dollar with a global digital currency to end the dominant advantage of US dollar. The Chinese version of CBDC is likely to become the biggest magic weapon to promote the internationalization of RMB and end the hegemony of US dollar. The opportunity for RMB internationalization lies in the trend of de dollarization. Therefore, we need friendly countries other than US dollars to participate in China's digital currency. Taking the lead in the use of digital currency in block trading and financial settlement to bypass the restrictions on trading in US dollar will certainly realize the development of de dollarization and form a new currency trading system dominated by China and participated by many parties. So how to achieve it? In essence, it is to transfer benefits, so that non dollarized friendly countries can participate in the issuance process of CBDC, and even share the seigniorage of RMB. It is the most effective magic weapon to embody the spirit of democratization and benefit sharing of blockchain and bitcoin in the design of sovereign currency, which is also the most practical way to realize the internationalization of RMB.
Hot content