The development of legal digital currency in China

In recent years, China has made great progress in the development of digital currency on the premise of controllable risk, but it also faces many challenges. The development of digital currency in China starts from private digital currency. The increase of demand and the expansion of market scale of private digital money market promote the development of private digital money market. In addition to bitcoin, the transaction scale of some virtual currencies is also graally increasing. Due to the lack of corresponding regulatory policies, the development of private digital currency presents a disordered state, and there are some risk events, which lead to large losses for some investors and impact the stability of the financial system to a certain extent. In this regard, the people's Bank of China and other relevant regulatory departments have issued strict rectification measures to strictly restrict the issuance and market transactions of private digital currency. At the same time, the people's Bank of China actively promotes the research and development of digital RMB and other related work, and the role of government departments in the development of digital currency in China has been further enhanced{ RRRRR}

Recently, there is relevant news that the central bank's digital currency is about to fall, which has attracted most people's praise. The relevant person in charge of the digital currency Research Institute said that the research and development of digital RMB is steadily advancing. At present, closed pilot projects have been carried out in Shenzhen, Suzhou and other places, and the functions are being continuously optimized and improved< Strong> after the central bank issues digital money, the daily payment will no longer need real name, nor do it need to use Alipay and WeChat to pay. It will bring great convenience to our life, and at the same time, it will change a lot. RRRRR}

the issue of digital currency is a trend, which will bring convenience to our lives. It also indirectly reflects the development of currency and social progress. After the use of digital currency, there will be a severe crackdown on crimes and other acts. The difficulty of money laundering will increase and criminal acts will be reced. The flow of money can be effectively queried through mobile app records, which has a great impact on social life

As of November 11, 2020, China's e-money system is under development

in August 2019, the relevant person in charge of the people's Bank of China said in public that the development of digital currency system is under way and the "digital RMB era" is coming

Wang Xin, director of Central Bank Research Bureau and monetary gold and silver Bureau, said that the central bank's digital currency mainly substitutes cash to a certain extent in China, which will help optimize the central bank's monetary payment function and improve the central bank's monetary status and the effectiveness of monetary policy

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nowadays, China is still in the stage of accelerating the research and development of digital currency. For example, the central bank held a working video conference in the second half of 2019 on August 2, calling for "accelerating the pace of research and development of China's legal digital currency"

and the opinions of the CPC Central Committee and the State Council on supporting Shenzhen to build a leading demonstration zone of socialism with Chinese characteristics issued in August 2019 clearly stated that "We support the development of innovative applications such as digital currency research and mobile payment in Shenzhen"

it is understood that in the future, the central bank will not issue digital currency directly to the public, but will adopt a two-tier operation system, that is, the central bank will first convert the digital currency to banks or other operating institutions, and then these institutions will convert it to the public. In the early stage, the central bank's legal digital currency may pilot in some scenarios, and then further promote it when it is more mature. For the sake of safety, it will do a good job in the design of pilot exit mechanism

At present, the world's major central banks are focusing on digital currency

instry insiders said that these digital currencies are stored in digital wallets and run in specific digital currency networks, which are more difficult to tamper with, easier to operate online and offline, more visible, and more extensive channels. As a new thing, the central bank's digital currency must have its own form of existence

Article source: bit110 network