What is the digital currency Institute of the central bank
Huang Zhen, director of the Institute of financial law of Central University of Finance and economics, said that digital currency mainly refers to the form of currency and will not cause currency shrinkage. The issuing scale of money is still controlled by the central bank, while the issue of paper money or digital money is just a change of form< In addition, Huang Zhen mentioned that the issue of digital currency is still in the stage of discussion, which is an innovative mechanism of currency value symbol, and many problems are still under study. However, in practice, people are more and more inclined to use e-banking and e-payment rather than carrying notes. Under this trend, the number of banknotes in circulation in the future may decrease
the central bank's issuing of digital currency is still inspired by encrypted digital currencies such as bitcoin and lettercoin, and so is the token of European crowdfunding platform. The digital currency issued by the central bank has monetary attributes, while the token of European crowdfunding platform can only be a kind of asset certificate, a niche proct.
As of September 2019, the central bank's digital currency has not been issued
the development history of the central bank's digital currency is as follows
in 2014, the Central Bank of China set up a special research team to conct in-depth research on the framework of digital currency issuance and business operation, key technologies of digital currency, issuance and circulation environment, and legal issues faced
in January 2017, the central bank officially established the digital currency Research Institute in Shenzhen
in September 2018, the Institute of digital currency built a trade finance blockchain platform
On July 8, 2019, at the launching ceremony of the digital finance open research program and the first academic seminar, Wang Xin, director of the Research Bureau of the people's Bank of China, disclosed that the State Council has officially approved the research and development of the central bank's digital currency, and the central bank is engaged in corresponding work in organizing market institutionson August 2, 2019, the central bank said at the second half of 2019 work video conference that it would speed up the research and development of legal digital currency
on August 10, 2019, Mu Changchun, deputy director of the payment and Settlement Department of the central bank, said at the Yichun forum of 40 people of China finance that "the central bank's digital currency can be said to be ready"
on August 18, 2019, the CPC Central Committee and the State Council issued their opinions on supporting Shenzhen to build a leading demonstration zone of socialism with Chinese characteristics, which mentioned supporting innovative applications such as digital currency research in Shenzhen
on August 21, 2019, the official micro blog of the people's Bank of China released two articles on digital currency. One is fan Yifei, vice president of the people's Bank of China, who was published in January 2018, talking about some considerations of digital currency of the people's Bank of China. The other is mu Changchun, deputy director of the Department of payment and settlement, who delivered a speech in Yichun on August 10
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practical significance
the digitalization of central bank's currency helps to optimize the central bank's monetary payment function, improve the central bank's monetary status and the effectiveness of monetary policy. The central bank's digital currency can become an interest bearing asset to meet the holder's reserve demand for safe assets, and can also become the lower limit of bank deposit interest rate
can also become a new monetary policy tool. At the same time, the central bank can affect the bank's deposit and loan interest rate by adjusting the central bank's digital currency interest rate, and help break the zero interest rate lower limit
operation system
fan Yifei, vice governor of the people's Bank of China, said in the article that the digital currency of the people's Bank of China should adopt a two-tier operation system. This model does not change the relationship between creditor's rights and debt of currency in circulation, does not change the existing money supply system and al account structure, does not constitute a competition for commercial banks' deposit currency, and does not increase commercial banks' dependence on the interbank lending market
will not affect the lending ability of commercial banks, and will not lead to the phenomenon of "financial disintermediation". At the same time, because it does not affect the existing monetary policy transmission mechanism, it will not strengthen the pro cyclical effect under the pressure environment, and it can improve the convenience and security of payment, and it also has the credit advantage of central bank endorsement
The digital currency of the central bank is DCEP
the name of the digital currency developed by the central bank is DCEP (digital currency electronic payment). DC is digital currency. EP is electronic payment. Payment transmits digital things through a certain way, not paper currency. Therefore, electronic payment itself has the attribute of digital currency
The characteristics of digital currency are: low transaction cost; Fast trading speed; Highly anonymous
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Application of digital currency
I. fast, economic and safe payment and settlement
cross border payment helps RMB internationalization. In 2015, the settlement volume of cross-border payment involving current account is about 8 trillion yuan. To accelerate the internationalization of RMB, cross-border payment and settlement procts and solutions with low cost, high efficiency and low risk are needed
At present, there are still a lot of repetitive human work in the bank's electronic loan process and processing process, and as the basic support of loan issuance, many of the collateral has the situation of false pricing or multiple or even no collateral. We can consider using digital currency to price and track bank collateral:3. Bill finance and supply chain finance
in recent years, various bill market businesses based on commercial bills have grown rapidly, and bill financing procts have become a hot area of Internet financing. However, about 70% of the current bill businesses in China are still paper transactions, Supply chain finance is also highly dependent on labor costs
reference materials
network digital currency
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
The digital currency developed by the central bank has such a definition: encrypted digital string representing specific amount guaranteed and signed by the central bank . In a broad sense, digital currency includes a wide range of aspects, including electronic currency, virtual currency and legal digital currency. But strictly speaking, the digital currency developed by the central bank refers to legal digital currency
electronic currency is the digitalization of legal tender, including our common bank cards, Internet banking, electronic cash, Alipay and so on. No matter what the form of these electronic money is and through which institutions it circulates, its original source is the legal money issued by the central bank
In contrast, virtual currency is the electronization of illegal currency, and its original issuer is not the central bank. For example, Tencent Q coin and other game coins, such virtual currency is mainly limited to circulation in a specific virtual environment; Bitcoin, for example, solves the problem of decentralization and distrust through blockchain technology, realizes global circulation, and is sought after all over the world. In other words, virtual currency can only be closed in the network circulation, and digital currency can be used for real goods and services transactions, but only the digital currency issued by the state is legal digital currency, bitcoin is illegalthe digital currency researched and issued by the central bank is indexed RMB, which belongs to legal encrypted digital currency from the perspective of national schemes, and it is not only a payment tool but also a currency itself< the purpose of digital currency issued by the central bank is to replace physical cash, rece the cost of traditional paper currency issuance and circulation, and improve the convenience and transparency of economic transactions
hope to adopt
the "trace" and "traceability" of digital currency can improve the convenience and transparency of economic transactions. Economist Yu Fenghui said that money laundering, tax evasion and other criminal activities are expected to decrease. At the same time, with the application of blockchain technology, a unified account book will be established nationwide or even worldwide, so that every sum of money can be traced back. Tax evasion and money laundering will be within the scope of supervision, and it is even possible to realize automatic tax dection on the card machine
in the future, the digital currency launched by the central bank will become the mainstream, and the digital currencies such as lightcoin, bitcoin and decent may be marginalized.
according to media reports, before the Spring Festival, the blockchain based digital bill trading platform promoted by the people's Bank of China has been successfully tested. After the Spring Festival, the digital currency Research Institute of the central bank will also be officially listed. This means that the people's Bank of China will become the first central bank to study digital currency and its real application.