Quality of digital currency
digital currency is an alternative currency in the form of electronic currency (which can be used for real goods and services transactions)
digital currency has the main characteristics of network packets. This kind of data packet is composed of data code and identification code. The data code is the content we need to transmit, while the identification code indicates where the data packet comes from and goes
based on the characteristics of digital currency, the direct benefit of digital currency to the central bank is not only to save the cost of note issuance, circulation and settlement, but also to enhance the central bank's ability to control funds
Electronic money and virtual money are called digital money. According to the definition of the European Central Bank, virtual money is issued by non central banks, credit institutions and e-money institutions, which can be used as the numerical expression of the value of currency substitutes in some cases{rrrrrrr}
extended information:
the process of digital currency trading through the platform is as follows:
(1) investors should register accounts first, and obtain digital currency accounts and US dollar or other foreign exchange accounts at the same time
(2) users can buy and sell digital currency with the money in their cash account, just like buying and selling stocks and futures
(3) the trading platform will sort the buying requests and selling requests according to the rules and start to match them. If they meet the requirements, the transaction will be concluded
(4) e to the difference between the buy and sell volumes submitted by users, a buy or sell request may be partially executed
there is no price limit for P.S. digital currency trading, so investment should be cautious!
Do you mean there is no essential difference between digital currency and the existing monetary system? I don't know where to draw this conclusion. At present, the general digital currency mainly includes bitcoin, Ethereum, reborn, Leyte and other virtual currencies. These virtual currencies are very different from the existing monetary system! For example:
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issuers: the issuers of existing legal tender are national government agencies, generally the central bank. Bitcoin and other digital currencies are issued according to the program encryption algorithm. If we want to say that the issuing subject, even one person can issue them. There is no credibility or coercion
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credibility. The existing monetary system, that is, legal tender, has the endorsement of national credit, which has more credibility. Bitcoin and other digital currencies rely on algorithms, which are often issued by a community or even indivials, with weak credibility
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mandatory. The existing monetary system, namely legal tender, is issued by the state and circulates in a country or region according to law. Digital currencies, such as bitcoin, do not have the power to enforce the law
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volatility. In the current monetary system, there are exchange rate fluctuations in various legal currencies, but they are basically in a relatively stable state. As for bitcoin and other digital currencies, you can look at the market of digital currencies on investing. It can be seen that the price difference of bitcoin even one day is more than 10%, which is obviously unstable
"the emergence of digital currency follows the inevitable law of currency evolution, and is also the inevitable result of the development of science and technology. From the perspective of historical process, the carrier of currency has evolved from shellfish and precious metals to paper money, and then to the popular third-party payment electronic currency in modern society
in essence, they are pursuing the convenience and low cost of transaction, and this trend continues to develop, and the manifestation in the future society is digital currency. The first thing to solve is the technical barriers, although today's blockchain is regarded as the Internet of the 1990s, and its future is limitless. But it is not mature enough to support the huge payment system. At the same time, the issuance of legal digital currency will greatly increase the number of point-to-point transactions, bypass the original regulatory system to a certain extent, and easily facilitate illegal transactions. As digital currency makes it very convenient to convert deposits into cash, financial panic and financial risk will accelerate the spread once they occur, which increases the difficulty of supervision. In addition, in the process of using legal digital currency, a large number of user data and transaction information will be obtained. How to store and manage these data to prevent the disclosure and illegal use of user information is also an important challenge.