Digital currency and Inclusive Finance
Publish: 2021-05-08 19:07:35
1.
1. The concept range is different. bitcoin is a kind of digital currency, and the concept of digital currency covers bitcoin
However, some digital currencies have independent issuers The biggest difference between bitcoin and other virtual currencies is that the total quantity of bitcoin is very limited and it has a strong scarcity. The monetary system used to have no more than 10.5 million in four years, after which the total number will be permanently limited to 21 milliondigital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy. Bitcoin is a digital currency
digital currency is different from the virtual currency in the virtual world, because it can be used for real goods and services transactions, not limited to online games. The early digital currency (digital gold currency) is a form of electronic currency named after the weight of gold
today's digital currencies, such as bitcoin, lettercoin and ppcoin, are electronic currencies created, issued and circulated by means of check sum cryptography. It is characterized by the use of P2P peer-to-peer network technology to issue, manage and circulate currency. In theory, it avoids bureaucratic examination and approval, so that everyone has the right to issue currency
illegal digital currency
in recent years, "virtual currency" represented by bitcoin, Ethernet currency and Leyte currency has been traded centrally on some Internet platforms. With the help of financial technology, the price of these "currencies" has graally spread to investment, financing and other financial fields, which has aroused wide attention from all walks of life
not long ago, the people's Bank of China and other seven ministries and commissions jointly issued the announcement on preventing the financing risk of token issuance, which clearly regulated the relevant behaviors. Experts pointed out that "virtual currency" is not legal tender (legal currency) issued by monetary authorities, but a specific virtual commodity in essence
therefore, it is undoubtedly a great legal and economic risk to think that "virtual currency" has or will have the nature of legal tender and to carry out speculation, network fund-raising, lending and financing
2. First of all, digital currency is not the national legal tender, but the "alternative currency in the form of electronic currency", such as bitcoin, ecell currency and ether currency. Currency digitization is to represent the common currency with numbers, and the number corresponds to the national legal tender. There is a big difference between the two.
3. Currency digitalization is like WeChat Alipay, and bankcard pays
1. digital currency facing two risks. The first is the technical level. Digital currency relies on blockchain technology and a system, which will make it suffer from security impact, such as hacker attacks on computer systems. We have seen many practical problems in this process< Another risk of digital currency is credit risk. Because there are middlemen in digital currency transactions, these middlemen are different from real organizations. In reality, organizations can be seen and felt, but the middlemen of digital currency are on the Internet, so the risk is greater
3. Digital currency has the characteristics of anonymity, quickness and irrevocability. In addition, bitcoin and other digital currencies have high circulation in the world, so many criminals use digital currency as a new money laundering channel. Moreover, there are many different ways to realize money laundering through digital currency. Generally speaking, the probability of new money laundering being found and investigated is lower than before. Many countries have no effective means and technology to combat money laundering through digital currency. These factors lead to criminals prefer this way of money laundering
investment is risky and business should be cautious
1. digital currency facing two risks. The first is the technical level. Digital currency relies on blockchain technology and a system, which will make it suffer from security impact, such as hacker attacks on computer systems. We have seen many practical problems in this process< Another risk of digital currency is credit risk. Because there are middlemen in digital currency transactions, these middlemen are different from real organizations. In reality, organizations can be seen and felt, but the middlemen of digital currency are on the Internet, so the risk is greater
3. Digital currency has the characteristics of anonymity, quickness and irrevocability. In addition, bitcoin and other digital currencies have high circulation in the world, so many criminals use digital currency as a new money laundering channel. Moreover, there are many different ways to realize money laundering through digital currency. Generally speaking, the probability of new money laundering being found and investigated is lower than before. Many countries have no effective means and technology to combat money laundering through digital currency. These factors lead to criminals prefer this way of money laundering
investment is risky and business should be cautious
4. 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.
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.
5.
the natural nature of bitcoin is decentralized, but the Central Bank of digital currency must abide by the centralized management model. Compared with bitcoin, the central bank's digital currency has a higher "currency" value, and the price of bitcoin fluctuates greatly. the central bank's digital currency ensures the payment function in daily life, and has remained relatively stable since 2014. Since the beginning of the year, the central bank has been actively engaged in the research and development of digital currency, including the active application of relevant patents
starting from the issue of digital currency, the central bank uses a two-level operating system, which first converts digital currency into banks or other operating institutions, and then to the public. Mu Changchun said the al transmission system is suitable for China's national conditions. We can not only use the existing resources to mobilize the enthusiasm of commercial banks, but also improve the acceptance of digital currency without any problem
6. 1 Modern credit currency
1; The issue of coins is usually unified in the central bank, which also belongs to credit currency
2. Bank current deposits (various names of current deposits)
3. Time deposits and residents' savings deposits in banks
4. All currencies based on bank credit, except banknotes and coins, The IMF generally calls it "deposit currency"
(2) credit currency and debt network
1. The circulation of credit currency is closely related to the comprehensive coverage of credit relationship and economic life
2, It is necessary to realize the growth and decline and transfer of creditor's rights and debts with credit payment instruments.
3; Bank credit documents naturally become an ideal form of currency to replace precious metals. 2. The creation of deposit currency. 1. The function of modern banks to create money. 2, The function of issuing bank notes and creating deposit currency has been developed.
2; The function of modern commercial banks to create money is to create deposit money
(2) original deposit and derivative deposit
1. Original deposit is the deposit formed by commercial banks accepting customers' cash deposits and rediscount and refinance funds from the central bank
2. Derivative deposit, It refers to the deposits derived from the bank's loan and investment activities; Derivative deposits are directly created by the asset business of commercial banks, which come from the different relationship between commercial banks and base money. The original deposit is the change from cash in circulation to deposit money, which does not cause the change of social money supply; The change of derivative deposit directly affects the change of social money supply
the status of the two is different, the original deposit determines the derivative deposit
(3) the derivation process of deposit currency under the seigniorage system
1; According to experience, keeping coins equivalent to 20% of the deposit amount is enough to meet the daily withdrawal of coins. Then, bank a can lend 8000 yuan to bank B. The balance sheet of bank a is as follows:
2. Party B pays 8000 yuan of coins to Bank C, and Bank C deposits the coins to bank B. according to the same consideration, bank B leaves 20% of the coins, i.e. 1600 yuan, and the remaining 6400 yuan is loaned to customer D. At this time, the balance sheet of bank B is as follows:
3. By analogy, from bank a to bank B, Bank C,..., bank n, continuous deposit, loan and deposit, the result is as follows:
4. Here are: (1) original deposit R, (2) total loan L, (3) total deposit after derivation (including original deposit) d, (3) total deposit after derivation (including original deposit) (4) the ratio of the necessary Mint stock to the deposit R, the relationship between the four can be expressed as
(4) the creation of deposit currency under the modern financial system
1. Similar to the preparation of mint stock
banks should prepare some bank notes for the deposits they absorb, In order to keep the deposit customers withdraw cash
in the check settlement, the balance between accounts receivable and payable between banks does not need to be settled with bank notes at all, but only needs to be transferred through the bank's deposit account in the central bank
2, The ratio of the bank's reserve deposits in the central bank to the total amount of deposits absorbed by the bank is the legal reserve rate
the part exceeding the legal ratio is the excess reserve rate
3, Deposit currency creation
"original deposit" source:
the deposit currency bank borrows money from the central bank
the customer receives a check from the central bank, such as an appropriation check issued by the Treasury, and entrusts his / her correspondent bank to collect money
it may also be that the customer sells foreign exchange to the deposit currency bank and forms a deposit, The process of banks selling foreign exchange to the central bank and forming reserve deposits is as follows:
examples:
1. Suppose that customer a of bank a receives a check from the central bank with the amount of 10000 yuan; Customer a entrusts bank a to collect money. As a result, the reserve deposit of bank a in the central bank will increase by 10000 yuan, while the equivalent deposit of bank a in the account of bank a will increase by 10000 yuan< (2) bank a absorbs deposits and makes conditional loans. If the legal reserve rate is still 20%, the legal reserve of bank a for this deposit shall not be less than 2000 yuan. If bank a provides a loan to customer B with a maximum loan amount of 8000 yuan, then the balance sheet of bank a is as follows:
3. When bank B pays 8000 yuan to customer C of bank B by check, and Bank C entrusts bank B to collect money, the balance sheet of Bank A and bank B is as follows:
4. Bank B has 8000 yuan reserve deposit in the central bank, According to the statutory reserve rate of 20%, its maximum loan amount is 6400 yuan. After lending 6400 yuan to customer D, the balance sheet of bank B is as follows:
5. When customer D of bank B pays 6400 yuan of payable payment to customer e of Bank C by check, and customer e entrusts Bank C to collect payment, the balance sheet of Bank B and Bank C is as follows:
6. Bank C has 6400 yuan of reserve deposit in the central bank, according to the legal reserve rate of 20%, The maximum amount of loan can not exceed 5120 yuan. If a loan is made to a customer, the balance sheet of Bank C is as follows:
(7) when a customer of Bank C has made a check payment of RMB 6400 to a customer of bank D, and the customer entrusts bank d to collect the money, the balance sheet of Bank C is as follows:
8, The derivation process of deposits is as follows:
9. The balance sheet of deposit monetary banking system is as follows:
4 Δ D is the total amount of derivative deposit increase including original deposit, Δ R is the initial increase of original deposit or reserve deposit, RD is the statutory reserve rate, The relationship between the three is as follows:
(5) multiplier of deposit money creation
1. Two necessary preconditions of deposit money creation
each bank only needs to reserve a certain proportion of the deposits it absorbs
the formation of bank clearing system
2. Multiplier of deposit money creation
bank deposit money creation The maximum expansion multiple of the total deposit determined by the mechanism is called derivative multiple, also known as derivative multiplier, which is the reciprocal of the legal reserve rate
the K value here is only the maximum multiple that the original deposit can expand, and the expansion multiple in the actual process often can not reach this value
3? D is the increase of current deposit and RD is the legal reserve rate of current deposit; Suppose again? T is the increase of fixed deposit, RT is the legal reserve rate of fixed deposit,? R is the increase of total reserve deposit, and the ratio of time deposit to current deposit is t (?)? T/?D There are:
4. The creation multiplier of cash and deposit currency
customers will withdraw cash from the bank, so that part of the cash flows out of the banking system, resulting in the so-called "cash leakage". The ratio of the amount of cash leakage to the total amount of current deposits is called the cash leakage rate, also known as the withdrawal rate? C is the amount of cash leakage, and C is the rate of cash leakage? C/?D? C＝c?? D
when cash is included, the creation multiplier of deposit currency is
5. Excess reserves and deposit currency creation multiplier
the reserves actually held by banks in excess of legal requirements are called excess reserves, and the ratio of excess reserves to total demand deposits is called excess reserve ratio, represented by E. At this time, the initial preparation of the bank is:
? R＝? D?rd＋t?rt?? D＋c?? D＋e?? D
＝? D (RD + T? RT + C + e)
the complete multiplier of deposit money creation is:
3. The process of money creation under the central bank system
(1) the process of cash input and circulation
1< 2. If the cash deposited in the deposit currency bank can not meet the requirement of withdrawing cash, it must withdraw cash from the reserve account, It is formed by the deposit currency bank withdrawing cash from the reserve deposit account of the central bank, It is the growth of cash issuance
cash withdrawal = deposit currency, the amount of cash deposited in the bank is more than the amount of cash withdrawn, which is the decrease of cash issuance
2. The issue of cash is growing: the fundamental reason is economic growth
3. Reserve deposits must be supplemented
when the issue of cash is an inevitable trend, It means that the deposit money bank continuously withdraws cash from the reserve deposit account, and the reserve deposit decreases correspondingly
under the condition of economic growth, the reserve deposit must be continuously supplemented
(3) the supplement of reserve deposit must be supported by the central bank
1, There must be an increase in the asset business of the central bank.
2. Ways for deposit money banks to replenish reserve deposits from the central bank:
rediscount and obtain loans directly from the central bank.
sell their own bonds to the central bank.
sell their own foreign exchange to the central bank...
3, On the one hand, the central bank accumulates its own assets; On the other hand, it forms two major liability items
reserve deposit balance of continuously replenishing and withdrawing cash
cash in circulation formed by the accumulation of cash leakage
4, If the central bank has the ability and no way to play its role, it will promote inflation if it forcibly supports unlimited money creation< (4) money multiplier: 1. Base money, for creating credit money, "deposit reserve" and "currency in circulation" are indispensable. Therefore, it is collectively referred to as base currency, or high-energy currency and strong currency. The International Monetary Fund calls it "reserve money"
2. The expression of the composition of the base currency:
b = R + C
where B is the base currency; R is the deposit reserve (reserve deposit and cash stock) held by the deposit currency bank; C is the cash circulating outside the banking system
3
1; The issue of coins is usually unified in the central bank, which also belongs to credit currency
2. Bank current deposits (various names of current deposits)
3. Time deposits and residents' savings deposits in banks
4. All currencies based on bank credit, except banknotes and coins, The IMF generally calls it "deposit currency"
(2) credit currency and debt network
1. The circulation of credit currency is closely related to the comprehensive coverage of credit relationship and economic life
2, It is necessary to realize the growth and decline and transfer of creditor's rights and debts with credit payment instruments.
3; Bank credit documents naturally become an ideal form of currency to replace precious metals. 2. The creation of deposit currency. 1. The function of modern banks to create money. 2, The function of issuing bank notes and creating deposit currency has been developed.
2; The function of modern commercial banks to create money is to create deposit money
(2) original deposit and derivative deposit
1. Original deposit is the deposit formed by commercial banks accepting customers' cash deposits and rediscount and refinance funds from the central bank
2. Derivative deposit, It refers to the deposits derived from the bank's loan and investment activities; Derivative deposits are directly created by the asset business of commercial banks, which come from the different relationship between commercial banks and base money. The original deposit is the change from cash in circulation to deposit money, which does not cause the change of social money supply; The change of derivative deposit directly affects the change of social money supply
the status of the two is different, the original deposit determines the derivative deposit
(3) the derivation process of deposit currency under the seigniorage system
1; According to experience, keeping coins equivalent to 20% of the deposit amount is enough to meet the daily withdrawal of coins. Then, bank a can lend 8000 yuan to bank B. The balance sheet of bank a is as follows:
2. Party B pays 8000 yuan of coins to Bank C, and Bank C deposits the coins to bank B. according to the same consideration, bank B leaves 20% of the coins, i.e. 1600 yuan, and the remaining 6400 yuan is loaned to customer D. At this time, the balance sheet of bank B is as follows:
3. By analogy, from bank a to bank B, Bank C,..., bank n, continuous deposit, loan and deposit, the result is as follows:
4. Here are: (1) original deposit R, (2) total loan L, (3) total deposit after derivation (including original deposit) d, (3) total deposit after derivation (including original deposit) (4) the ratio of the necessary Mint stock to the deposit R, the relationship between the four can be expressed as
(4) the creation of deposit currency under the modern financial system
1. Similar to the preparation of mint stock
banks should prepare some bank notes for the deposits they absorb, In order to keep the deposit customers withdraw cash
in the check settlement, the balance between accounts receivable and payable between banks does not need to be settled with bank notes at all, but only needs to be transferred through the bank's deposit account in the central bank
2, The ratio of the bank's reserve deposits in the central bank to the total amount of deposits absorbed by the bank is the legal reserve rate
the part exceeding the legal ratio is the excess reserve rate
3, Deposit currency creation
"original deposit" source:
the deposit currency bank borrows money from the central bank
the customer receives a check from the central bank, such as an appropriation check issued by the Treasury, and entrusts his / her correspondent bank to collect money
it may also be that the customer sells foreign exchange to the deposit currency bank and forms a deposit, The process of banks selling foreign exchange to the central bank and forming reserve deposits is as follows:
examples:
1. Suppose that customer a of bank a receives a check from the central bank with the amount of 10000 yuan; Customer a entrusts bank a to collect money. As a result, the reserve deposit of bank a in the central bank will increase by 10000 yuan, while the equivalent deposit of bank a in the account of bank a will increase by 10000 yuan< (2) bank a absorbs deposits and makes conditional loans. If the legal reserve rate is still 20%, the legal reserve of bank a for this deposit shall not be less than 2000 yuan. If bank a provides a loan to customer B with a maximum loan amount of 8000 yuan, then the balance sheet of bank a is as follows:
3. When bank B pays 8000 yuan to customer C of bank B by check, and Bank C entrusts bank B to collect money, the balance sheet of Bank A and bank B is as follows:
4. Bank B has 8000 yuan reserve deposit in the central bank, According to the statutory reserve rate of 20%, its maximum loan amount is 6400 yuan. After lending 6400 yuan to customer D, the balance sheet of bank B is as follows:
5. When customer D of bank B pays 6400 yuan of payable payment to customer e of Bank C by check, and customer e entrusts Bank C to collect payment, the balance sheet of Bank B and Bank C is as follows:
6. Bank C has 6400 yuan of reserve deposit in the central bank, according to the legal reserve rate of 20%, The maximum amount of loan can not exceed 5120 yuan. If a loan is made to a customer, the balance sheet of Bank C is as follows:
(7) when a customer of Bank C has made a check payment of RMB 6400 to a customer of bank D, and the customer entrusts bank d to collect the money, the balance sheet of Bank C is as follows:
8, The derivation process of deposits is as follows:
9. The balance sheet of deposit monetary banking system is as follows:
4 Δ D is the total amount of derivative deposit increase including original deposit, Δ R is the initial increase of original deposit or reserve deposit, RD is the statutory reserve rate, The relationship between the three is as follows:
(5) multiplier of deposit money creation
1. Two necessary preconditions of deposit money creation
each bank only needs to reserve a certain proportion of the deposits it absorbs
the formation of bank clearing system
2. Multiplier of deposit money creation
bank deposit money creation The maximum expansion multiple of the total deposit determined by the mechanism is called derivative multiple, also known as derivative multiplier, which is the reciprocal of the legal reserve rate
the K value here is only the maximum multiple that the original deposit can expand, and the expansion multiple in the actual process often can not reach this value
3? D is the increase of current deposit and RD is the legal reserve rate of current deposit; Suppose again? T is the increase of fixed deposit, RT is the legal reserve rate of fixed deposit,? R is the increase of total reserve deposit, and the ratio of time deposit to current deposit is t (?)? T/?D There are:
4. The creation multiplier of cash and deposit currency
customers will withdraw cash from the bank, so that part of the cash flows out of the banking system, resulting in the so-called "cash leakage". The ratio of the amount of cash leakage to the total amount of current deposits is called the cash leakage rate, also known as the withdrawal rate? C is the amount of cash leakage, and C is the rate of cash leakage? C/?D? C＝c?? D
when cash is included, the creation multiplier of deposit currency is
5. Excess reserves and deposit currency creation multiplier
the reserves actually held by banks in excess of legal requirements are called excess reserves, and the ratio of excess reserves to total demand deposits is called excess reserve ratio, represented by E. At this time, the initial preparation of the bank is:
? R＝? D?rd＋t?rt?? D＋c?? D＋e?? D
＝? D (RD + T? RT + C + e)
the complete multiplier of deposit money creation is:
3. The process of money creation under the central bank system
(1) the process of cash input and circulation
1< 2. If the cash deposited in the deposit currency bank can not meet the requirement of withdrawing cash, it must withdraw cash from the reserve account, It is formed by the deposit currency bank withdrawing cash from the reserve deposit account of the central bank, It is the growth of cash issuance
cash withdrawal = deposit currency, the amount of cash deposited in the bank is more than the amount of cash withdrawn, which is the decrease of cash issuance
2. The issue of cash is growing: the fundamental reason is economic growth
3. Reserve deposits must be supplemented
when the issue of cash is an inevitable trend, It means that the deposit money bank continuously withdraws cash from the reserve deposit account, and the reserve deposit decreases correspondingly
under the condition of economic growth, the reserve deposit must be continuously supplemented
(3) the supplement of reserve deposit must be supported by the central bank
1, There must be an increase in the asset business of the central bank.
2. Ways for deposit money banks to replenish reserve deposits from the central bank:
rediscount and obtain loans directly from the central bank.
sell their own bonds to the central bank.
sell their own foreign exchange to the central bank...
3, On the one hand, the central bank accumulates its own assets; On the other hand, it forms two major liability items
reserve deposit balance of continuously replenishing and withdrawing cash
cash in circulation formed by the accumulation of cash leakage
4, If the central bank has the ability and no way to play its role, it will promote inflation if it forcibly supports unlimited money creation< (4) money multiplier: 1. Base money, for creating credit money, "deposit reserve" and "currency in circulation" are indispensable. Therefore, it is collectively referred to as base currency, or high-energy currency and strong currency. The International Monetary Fund calls it "reserve money"
2. The expression of the composition of the base currency:
b = R + C
where B is the base currency; R is the deposit reserve (reserve deposit and cash stock) held by the deposit currency bank; C is the cash circulating outside the banking system
3
7. From the perspective of form, it is a project that makes IPO or ICO and circulates in the secondary market
traditional securities is a formal trading platform certified by ZF. It has a center, and the trading time is regulated
as an emerging financial transaction currency, digital currency is believed that blockchain is the future, and its weak center, tamper proof and irreversibility make more people reach the consensus of "future".
traditional securities is a formal trading platform certified by ZF. It has a center, and the trading time is regulated
as an emerging financial transaction currency, digital currency is believed that blockchain is the future, and its weak center, tamper proof and irreversibility make more people reach the consensus of "future".
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