Credit monetization and currency digitization

1. 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

2. Electronic money and credit money are not contradictory and interdependent
credit currency is generally referred to as sovereign currency, which has the credit endorsement of the country. Electronic currency can be the digitalization of sovereign currency, and there is no difference in fact. Of course, there are bitcoin, Ruitai coin, vitality coin, Wright coin and other currencies without government credit endorsement. These currencies rely on a trust relationship between people.

3. Credit currency refers to the currency whose value is lower than or even has no value, which can be circulated only by virtue of the credit of the issuer. The typical forms of credit currency are bank notes and government notes. The former can be called cashable credit currency because it is a debt certificate issued by the bank to the holder to guarantee the payment of gold and silver. The latter can be called the cashless credit currency, because it is a value symbol issued by the government and forced to circulate by the state power

credit currency: credit currency came into being in the 1930s. Due to the global economic crisis, many countries were forced to break away from the gold standard and silver standard, and the issued paper currency can no longer be converted into metal currency, so credit currency came into being

as a general medium of exchange, credit currency needs two conditions: one is people's confidence in this currency; The second is the legislative guarantee of currency issuance. Both are indispensable. At present, credit currency can be divided into the following forms: 1. Its function is to act as a medium for small or sporadic transactions, mostly made of base metals. ② Cash or paper money. Its main function is also to serve as a means of purchasing people's daily necessities. Generally, it is paper money with circulation means, and its issuing right is exclusive to the government or financial institutions. ② Bank deposits. Also known as debt currency, depositors can deliver their deposits to others as the medium of commodity exchange with the help of cheques or other payment instructions.

4. What is the difference between money and credit? It is a question that economics has not answered for a long time. Economic reality tells us: money and credit are not completely equal, the total amount of money (whether M0, M1, M2, m3 or the most generalized liquidity L) is not equal to the total amount of credit, and the process of credit creation is not equal to the process of money creation. For hundreds of years, economists have been arguing about what money is. In order to stabilize the price level and the whole economic system, should the central bank control the money supply or the total credit? This is a major debate on monetary theory and monetary policy, and there is no final conclusion yet. A basic idea of this paper is: there is a basic difference between money and credit. Currency is the medium (space transaction) of spot goods trading at any time point; Credit is the medium of intertemporal transaction. It is not money but credit that determines the differentiation and deviation between real economy and virtual economy, the cyclical fluctuation of economy and the most important variable of inflation. It is precisely because inflation is a future oriented concept of expectation that there is a closer relationship between inflation and total credit.

5. Money includes gold and silver, and credit money is paper ticket, which is guaranteed by gold and silver

6.

1. Promissory note in commodity credit transaction, when a capitalist purchases a certain commodity, he does not need to pay cash, but only needs to issue a debt certificate to the other party to pay the debt on a regular basis. When e, the holder can ask the drawer for cash according to the face value. A promissory note that is not yet e is signed by the creditor on the back of the note to indicate that it bears the debt. The holder can also use it as a means of purchase or payment to purchase goods or repay the debt

in addition, the holder can apply to the bank for discount of the bill that has not yet expired. The drawee may dect the interest of the period before the maturity of the promissory note according to the interest rate

2. Banknotes are proced on the basis of commercial paper circulation and guaranteed by bank credit, which is also a kind of credit currency. Holders can use it instead of metal money. It has no fixed payment date and can be exchanged for gold at any time; Its face value is a fixed integer, which is easy to circulate; It is guaranteed by gold and bills. Its credit base is relatively stable and it can circulate in a wide range of bank credit

However, e to the abandonment of the gold standard and the cessation of the exchange of bank notes for gold, capitalist countries generally issue dishonoured banknotes as a means of circulation. Unlike banknotes, banknotes are not prepared with commercial paper and gold, and can not be exchanged for gold. In fact, they can no longer be called credit currency. It was issued by government decree. In order to make up the fiscal deficit, the government issues paper money indiscriminately, which often leads to inflation

With the development of capitalist banking business, cheques play the role of currency in circulation and become the main form of payment of debts instead of currency and transfer settlement between depositors. Before the Second World War, bank checks had become the main credit currency

According to statistics, in 1937, the proportion of demand deposits based on which cheques were issued in the money supply was 81% in the United States, 73% in the United Kingdom, 61% in Japan and 41% in France. After the Second World War, bank checks are still the main means of circulation in capitalist countries, accounting for about 90% of the money supply in some countries

it is an important means of payment not only in wholesale trade, but also in retail trade. Since the 1960s, in order to strengthen the competitive position and pursue high profits, banks have tried every means to improve their banking business, and the scope of credit currency has been expanded

The subsidiary coins are mostly made of base metals, which are generally issued exclusively by the government and minted by a special mint. Its main function is to act as a medium in small or sporadic transactions

Most of the banknotes are issued by the Central Bank of a country, whose main function is to undertake the means of purchasing people's daily necessities

6. Bank deposit is the creditor's right of the depositor to the bank, which is also the debt currency for the bank. In addition to the transfer payment in the bank account, the deposit should also be paid with the help of cheques. In the economic transactions of the whole society, the proportion of using bank deposits as the means of payment accounts for the vast majority. With the development of credit, this kind of currency is widely used in some small transactions, such as customers' payment to retailers and employees' wages

Due to the rapid development of science and technology and the application of electronic computing technology, the transaction and payment of money has entered a new stage. E-money usually uses computers or stored value cards to carry out financial transactions and payment activities, such as various credit cards, stored value cards, electronic wallets, etc. At the same time, it can also supplement the amount of money storage with the help of Internet computers, automatic teller machines or telephone operations. This kind of currency is very convenient to use and is still improving and developing

< H2 > in the aspect of exchange rate, it emphasizes that the equilibrium exchange rate of RMB is affected by money supply and is in constant change; In terms of RMB internationalization, exporting RMB under capital account is the way to realize RMB internationalization; In terms of balance of payments, current account surplus and capital account deficit will be the choice for the evolution of China's balance of payments pattern, and they are feasible in terms of theory, reality and international experience. In addition, there are abundant references in the fields of financial risk prevention, financial technology and innovation

generally speaking, from the perspective of credit money creation, the central bank needs to take the initiative to supply base money to achieve monetary policy regulation. Under the current background of poor transmission from broad money to broad credit, it is an effective way to influence the use of internal funds of banks by releasing medium and long-term funds and transmit them to the credit market, money market and bond market, which is in line with the characteristics of central bank's liquidity supply since this year. The drop of reserve requirement and MLF supply have become the main ways of base money supply

7. In fact, it is a kind of credit instrument or debt certificate.