Can digital economy reduce the circulation of money

1.

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

2. 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

3. In theory, all the money in circulation now will disappear over time. Because, the existing currency will graally not adapt to the needs of social development and graally be eliminated, just as now the third-party payment has begun to replace the trend of cash transactions. After the degree of economic development reaches a certain level and the infrastructure is perfect enough, paperless transaction will become a reality
the central bank has made it clear that it will issue digital currency, which has the function of legal currency. The token issued by European crowdfunding platform for crowdfunding projects only exists as an asset certificate, which can be traded in the market and the exit mechanism is more flexible; Of course, the digital currency launched by some platforms is used as platform points.

4.

bitcoin ETF has not been approved by SEC (US Securities Regulatory Commission). The reason for SEC's refusal is that bitcoin's market manipulation and fraud problems

this issue may not be approved until the bitcoin market is mature

5. Digital money does not rece the amount of money in circulation. Digital money only changes the form of money, which is more concive to commodity exchange and can speed up the number of currency circulation, but the amount of money actually needed in circulation has not changed.

6. This should not have any impact.

7. The issue of digital currency can not only rece the high cost of traditional paper currency issue and circulation, but also better serve our virtual economy. Previously, bitcoin and other data currencies were legalized in California, and the Bank of England also considered issuing digital currency, which opened a good foundation for digital currency circulation. With the issuance of digital currency in China, the penetration rate of mobile payment will rise by leaps and bounds, and the development prospect of taking the lead in layout is broad
in the A-share market, the concept stocks related to mobile payment mainly include: Hengbao shares, new world, Tianyu information, Zhongke Jincai, national technology, new cape, new Guo, etc.

8. You've come up with two ways. Issuing bonds and increasing taxes
your question is how to rece the amount of money in circulation. After the money is recovered from the central bank, it will not circulate for a period of time< Of course, the main means are not issuing bonds and increasing taxes. It's about raising deposit reserves and raising deposit and loan interest rates. You said to deposit the money in the bank. The money still exists. It does exist. But existence does not mean circulation. It does not exist in the central bank's treasury. The money written off is the money withdrawn from circulation, such as the third version of RMB, the fourth version, etc.

9. 1. "Most people have less money" should be your subjective view

2. The total amount of money in circulation can't keep changing. People need to buy goods and services through money to eat, drink and sleep. The change in the total amount of money in circulation is usually the reason why the state uses this means to control the economy and make the economy grow steadily. For example, ring the current COVID-19, the national economy is going down. At this time, because of the reasons why people can't go out to work and make money, the consumption will drop, and no one can buy the goods proced by the enterprises, so the enterprises can not return to the original. This is bound to lead to the downturn of the whole economy. At this time, the government, by means of recing enterprise loan interest rate and bank deposit interest rate, on the one hand appeases the tense cash flow of enterprises, and on the other hand stimulates people to spend their spare money. In this case, the total amount of money circulating in the whole economy is graally increasing, and its role is to stimulate economic development Investment and net exports, in which consumption is our ultimate demand and purpose, can stimulate the development of our proctivity. When you say "holding money in your hands", there are many meanings. The first is the simplest way to deposit money in the bank. In fact, the money deposited in the bank will be loaned away by enterprises for proction. In this case, it is counted as investment, which can stimulate GDP growth. But if you take it to real estate, it's different. However, if you invest too much money, your money will be taken to real estate. As a result, you can't consume and invest, and your contribution to GDP will be small.
when the amount of money in circulation increases, prices will rise and GDP will be pulled up, but you can't issue too much money, which will lead to hyperinflation

10. This view is not accurate

from the perspective of total social supply and social demand, online shopping is also the circulation of goods, with money as the medium, which also forms the demand for money, so it is wrong to think that the amount of money needed in circulation can be reced. The advanced stage of currency development is electronic currency
it is right to rece the use of cash. It can rece the circulation of paper money, which should be right. After the issue of banknotes, if consumers do not withdraw cash from the bank, they will settle accounts by bank transfer, and the amount of cash is not in the circulation field
it's too general to save social labor, but saving paper, bank staff and cashiers' yarn counting, receipt and payment, and cash transportation can be regarded as saving social labor.