Digital monetization and internationalization of RMB

1.

The impact of RMB internationalization on China's economy has two aspects: negative impact and positive impact

(1) RMB internationalization is concive to the stable development of China's foreign trade: the implementation of RMB pricing and settlement in international trade can bring trade facilitation benefits to foreign trade enterprises, such as recing approval links, avoiding exchange rate risks, and recing operating costs

(2) it is concive to the structural adjustment of China's foreign exchange reserves: if RMB is internationalized, China will use RMB in trade valuation and settlement, which will rece the income of US dollar and other foreign exchange reserves to a certain extent; Imported procts can be paid in RMB, so that paper money can be exchanged for physical goods

(3) RMB internationalization can make China obtain seigniorage income: if RMB can become the international standard currency, China can obtain a seigniorage income

(4) RMB internationalization helps to build a new multipolar international economic order: China promotes RMB internationalization, takes advantage of the situation that the US dollar, euro and Japanese yen are at a low ebb, expands the scope of RMB's functions of international settlement, investment and reserve, and effectively shares the pressure on the existing international currencies, which is not only to promote the international financial rules to move towards fairness, justice and stability Inclusive and orderly evolution is a strong guarantee for the future harmonious and healthy development of the world economic and financial system

2, the adverse impact of RMB internationalization on China's economy:

(1), has a certain impact on China's economic and financial stability: RMB internationalization makes China's domestic economy closely linked with the world economy, and any turbulence in the international financial market will have a certain impact on China's economy and finance

(2) increase the difficulty of Macro-control: after the internationalization of RMB, a certain amount of RMB will circulate in the international financial market, which may weaken the central bank's ability to control domestic RMB and affect the effect of domestic macro-control policies

(3) increase the difficulty of RMB cash management and monitoring: after the internationalization of RMB, it will increase the difficulty of RMB cash management by the central bank e to the difficulty of monitoring the demand and circulation of RMB cash abroad. At the same time, the cross-border flow of RMB cash may increase some illegal activities, such as smuggling, gambling and drug trafficking

internationalization of RMB:

internationalization of RMB refers to the process that RMB can cross national boundaries, circulate abroad, and become an internationally recognized pricing, settlement and reserve currency. Although the current circulation of RMB overseas does not mean that RMB has been internationalized, the expansion of RMB overseas circulation will eventually lead to the internationalization of RMB and make it a world currency

in an interview with Xinhua news agency in Beijing on November 9, 2014, Andre koskin, President of the Russian Foreign Trade Bank, said that the Chinese government is committed to turning RMB into an international reserve currency and settlement currency, and Russia has a very positive attitude towards this

regarding the development of RMB internationalization, the city of London said that the current development momentum is good. The internationalization of a country's currency needs a high degree of purposeful policy guidance and policy predictability. In these two aspects, China has a very good grasp of policies in the process of promoting RMB internationalization. The RMB cross-border payment system has begun to operate, which is another great progress in the process of RMB internationalization. RMB is currently the third largest trading currency in the world, and the city of London expects RMB to become one of the most important trading currencies in the future. The city of London will also make its own efforts to achieve this goal. In the future, it will promote the internationalization of RMB in many fields, such as RMB entering SDR, promoting the development of China's carbon finance, and helping to introce more institutional investors

2.

Hello, the replacement of paper-based RMB by digital RMB is basically certain. Just as the era goes from entity to e-commerce, RMB also goes from offline to online. Its function is exactly the same as paper money, that is, the digital version of paper money

at present, China's digital currency is a leading technology, which is bound to accelerate its digital currency construction in the short term, in order to find the gap with DCEP. However, DCEP can ultimately promote the nationalization of RMB, still depends on the steady growth of domestic economy and the international circulation ability of RMB itself, not only on the digital technology of RMB, but also has a long way to go

3. "Gold Valley" Drama: 30 episodes type: historical region: Mainland
director: Xi Xin Starring: Du yuan, Xi Xue, Zhang o, Liu Jiajia, Yao long, Zhang Ying
synopsis: in 1945, before the Japanese army surrendered, they hid 800 pieces of gold bricks in jinniutuo mountain and slaughtered all the informed Chinese workers, Only Tian survived. During the movement, Tian you was framed as a traitor, expelled from the party and put in prison. After acquittal, he was assigned to work in a state-owned gold mine. After the reform and opening up, the state relaxed the policy and encouraged people to seek for gold. Tian you, who retired from the gold mine, led his family and employees to prepare for a big fight. Tian you and his children experienced all kinds of hardships in the process of panning for gold, as well as the test of family affection and love. In the end, Tian you not only collected gold bars once in a blue moon, but also found the father of a white haired man who had been lost for many years to clear his son's name in the abandoned tunnel, and found the gold bricks hidden by the Japanese devils. The descendants of the Japanese soldiers, whose hands were stained with the blood of the Chinese people, came back to plead guilty and knelt down in front of the mountains and the great wall where the bones of the Chinese workers were buried.

4. At present, the RMB has basically been peripheral. In Southeast Asia, RMB has become another "hard currency" next only to us dollar, euro and Japanese yen. In southwest border areas, RMB is known as "small US dollar" and used as a hard currency; In Northwest China, RMB mainly circulates in five Central Asian countries, Russia and Pakistan; In Northeast China, RMB mainly flows to Russia, North Korea and Mongolia; Hong Kong has the largest cross-border circulation of RMB, which can be freely convertible through various channels. In addition, RMB is also widely used in Macao

as for the regionalization and internationalization of RMB, we can graally seek monetary cooperation within the framework of ASEAN 10 + 1 pseudo economic cooperation. We can fix their respective exchange rates and float jointly with foreign countries. When the time is ripe, we can use strong RMB to replace other currencies or take RMB as the dominant currency to create a single currency and realize monetary unification. Secondly, it can expand to ASEAN 10 + 3 on the basis of ASEAN 10 + 1 and unite with Japan and South Korea. At that time, RMB will really grow into an international currency with far-reaching influence, just like the euro to Europe and the US dollar to America

secondly, in terms of monetary function, we should promote the internationalization of RMB in three steps, that is, adhere to the three-step strategy of RMB settlement currency, RMB investment currency and RMB reserve currency. In this process, we should steadily promote the process of RMB capital account convertibility, actively and steadily carry out offshore financial business, and graally implement the target area management of exchange rate

historically, which country's currency becomes a valuation currency in international trade and capital flow will take the initiative in international economic transactions. Take capital export as an example. Among the three capital flow centers in the world, when Britain and the United States were capital exporting countries, they all used their local currency as the valuation currency, while after the 1970s, when Japan was the capital export center, they used US dollar as the valuation currency. result; Japanese enterprises and financial institutions are very passive in dealing with the exchange rate risk in the foreign exchange market. When the yen rose sharply, these enterprises and financial institutions suffered huge losses. This is considered by many people as one of the important reasons for Japan's economic recession for more than a decade

for a large economic country, if the local currency can not comply with the trend of domestic trade growth and become the pricing currency of the open international financial market and trade, then the national currency will not become one of the major international reserve currencies. This means that the domestic currency has not obtained the international currency status which is relative to the total economic volume and the total trade volume. In order to deal with the macro financial risk of exchange rate fluctuations, the government must hold a large number of foreign exchange reserves. In today's international monetary system, US dollar and euro are the main pricing currencies in the international financial market, so US dollar and euro have become the main reserve currencies in the world. Correspondingly, the foreign exchange reserves of the United States and the European Union are very small. By the end of June 2007, the value of foreign exchange reserves of the United States was only US $41.5 billion, and that of the European Central Bank was only 41.4 billion euros. In contrast, in Asia, although Japan and China are among the top countries in the world in terms of economic aggregate, neither the Japanese yen nor the RMB has gained the status of an important pricing currency in the international financial market. As a result, China and Japan have the largest foreign exchange reserves in the world

with the development of China's economy, it should be our long-term goal to take corresponding strategies to graally integrate RMB into the international reserve currency system, break the current reserve currency pattern of the western world dominated by US dollar and euro, and promote the construction of multipolar reserve currency system. In this process, China should adopt a consistent graal strategy to promote the internationalization of RMB through the regionalization of RMB. At the same time, we should develop an open international asset market valued in RMB and provide more choices of RMB financial assets for foreign investors. Only after such a stage can RMB really gain the status of reserve currency, and we can get rid of the trouble of worrying about the amount of foreign exchange reserves.

5.

1. For commercial banks and other financial institutions, it is both an opportunity and a challenge. In the future, more innovations such as digital credit, digital assets and digital liabilities will be derived from digital currency, while the non sovereign "digital right currency" will graally cool down. In addition, the central bank can improve the efficiency of monetary operation monitoring and enrich monetary policy means after the issuance of digital currency

2. Issuing the legal digital currency of the central bank will make it possible to collect the data of money creation, bookkeeping and flow in real time. After data desensitization, it will conct in-depth analysis through big data and other technical means, so as to provide a useful reference for money supply, formulation and Implementation of monetary policy, and provide a useful means for economic regulation and control

extended data:

characteristics of digital currency

Central Bank digital currency is quite different from electronic payment in some functions. In the past, the fund transfer of electronic payment instruments must be completed through the traditional bank account, which adopts the way of "account tightly coupled"

and the central bank's digital currency is "account loose coupling", which can be separated from the traditional bank account to realize the value transfer and greatly rece the dependence of the transaction link on the account. The digital currency of the central bank can be as easy to circulate as cash, which is concive to the circulation and internationalization of RMB. At the same time, it can realize controllable anonymity

7. The internationalization of RMB and other currencies has the same goal, which is to cross national boundaries, circulate abroad, and become the internationally recognized pricing, settlement and reserve currency. After internationalization, countries with internationalized local currency can enjoy international seigniorage; Having the right to speak in the international financial system; To facilitate foreign trade and foreign investment activities and improve the terms of trade; Bring new business income to domestic financial institutions; It will play a role in promoting the country's construction of an international financial center. In addition, they all need strong political and economic strength to support
the main difference is that the path to internationalization is different. What makes us dollar become an international currency depends on a global currency exchange rate system arrangement, that is, the Bretton Woods system after World War II. The internationalization of euro is based on the common political and economic interests, with the similar culture as the link, relying on the greater influence of regional economy in the world economic system. The internationalization of Japanese yen is a way of financial deepening and development. Through the liberalization of foreign exchange, trade, current account, capital flow, interest rate and financial market, Japanese yen has become a currency widely used in international economic activities. In fact, the path of RMB internationalization chooses the mode of yen internationalization, that is, starting from the free convertibility of currency, deepening financial reform and development, and relying on the improvement of China's comprehensive national strength and international status to achieve internationalization.

8. RMB internationalization refers to the process that RMB can cross national boundaries, circulate abroad, and become the internationally recognized pricing, settlement and reserve currency. Although the current circulation of RMB overseas does not mean that RMB has been internationalized, the expansion of RMB overseas circulation will eventually lead to the internationalization of RMB and make it a world currency

the significance of RMB internationalization includes three aspects:

first, RMB cash enjoys a certain degree of liquidity abroad< Second and most important, RMB denominated financial procts have become investment tools of major international financial institutions, including the central bank. Therefore, the scale of RMB denominated financial market is expanding

thirdly, the transactions settled in RMB should reach a certain proportion in international trade. This is a common standard to measure the internationalization of currencies, including RMB, and the latter two are the most important. At present, the highest form of economic competition among countries is currency competition. If the substitution of RMB for other currencies is strengthened, it will not only change the distribution pattern of reserve currency and its related seigniorage benefits, but also have a profound impact on the geopolitical pattern of western countries.

9. RMB internationalization helps to alleviate the defects of the current international monetary system

if there is a stable international exchange rate system in the world, or if there is an equal, mutual trust and stable international monetary system in the world, China may not necessarily pursue RMB internationalization today. But today's financial world is not peaceful and there are too many problems. The operation of the main reserve currencies that dominate the world can not reasonably reflect the changes in economic strength among countries, and can not maintain the stable development of the world economy. In order to avoid the negative impact of the real financial world on China's development, RMB internationalization is an inevitable pursuit

history shows that in the process of participating in economic and financial globalization, developing countries over rely on the money, financial networks and services provided by central currency countries, which will add new uncertainty risks to their development. In view of the characteristics of China's developing, transitional and large economy, especially in the current international monetary system which is dominated by floating exchange rate and lacks the necessary international binding force

therefore, RMB internationalization is the core interest pursuit of China's financial opening. Although Chinese policy researchers are soberly aware that RMB, as an international reserve currency, may only account for 3% - 5% of the world's reserve currency even after 10 years of efforts, the strategic significance of RMB internationalization today lies in its strategic layout and in the long-term process of pursuing and promoting the international status of RMB, We should promote the reform of various domestic systems and the opening of financial markets, improve the economic structure and the efficiency of economic growth, and create a stable international monetary environment in the process

of course, if RMB can become one of the major international currencies and compete with the US dollar to a certain extent with other reserve currencies such as the euro, it will be helpful to eliminate the imbalance of the world economy from the institutional level. In the process of RMB internationalization, if China can achieve various effective monetary and financial cooperation with Asian countries and seek to create a regional exchange rate stability mechanism and regional currency, it will also be a good thing for the economic development of Asia and the world<

the realistic path choice of RMB regionalization. This means that China's RMB internationalization process is to take a different formation path from the world's major reserve currencies, which is unprecedented in history

first of all, the future direction of China's exchange rate system will be integrated into today's floating exchange rate system dominated by the international economy. However, in the next eight or nine years, China's economy will face a lot of reform problems and the world's economic and financial uncertainty, which determines that in terms of exchange rate system, it may continue to choose a managed floating exchange rate system with a basket of currencies for adjustment (of course, the floating range and floating frequency tend to be more market-oriented, and the weight of currencies in the basket will be adjusted), Rather than a fully floating exchange rate system

this may be more in line with the needs of China's economic characteristics. With the graal marketization of the exchange rate system, the opening up under the capital account is bound to be graal. At the same time, in the face of the lack of international monetary system in today's world, in order to ensure the stable growth of China's economy from greater negative impact, it is necessary to realize the regionalization of RMB in line with its economic openness

this strategic choice will face an unavoidable dilemma: to maintain a relatively stable exchange rate environment, the pace of opening up under the capital account should not be too fast; However, the pace of opening up under the capital account should not be too fast, which determines that RMB cannot be internationalized as soon as possible. In order to truly realize the internationalization of RMB, RMB must be allowed to be fully convertible, which means that the control under the capital account must be completely liberalized, which means that the exchange rate level can only be basically determined by the international and domestic market supply and demand, but this is just what China's recent economic stage is difficult to accept. China's abandonment of the pursuit of RMB internationalization is not only not concive to the realization of stable exchange rate environment for its own economic development, but also the lack of an improvement force that can reflect the changes in the pattern of world economic strength and the lack of checks and balances in the international monetary system, which will be a pity in the excessive turbulence of international currency exchange rate

the dilemma exists objectively. Can the dilemma be minimized? This can only be expected in the implementation of China's strategy. First, changes in exchange rate policy, capital management policy and domestic reform policy should be well linked as far as possible, so as not to cause macroeconomic instability; Second, in the process of RMB regionalization, we should link up the appropriate reform of exchange rate and capital management policy; Thirdly, through the creation of RMB offshore market, while opening up domestic financial market to foreign countries, we should isolate the transmission of international financial risks to domestic market in the process of RMB regionalization, and regulate the scale and structure of RMB offshore market according to the evolution of domestic exchange rate and capital management policies, Timely expand the "channel" of "offshore" and "onshore" markets, so as to continuously promote the pace of opening up and reform of China's overall financial market

at present, to speed up the process of RMB regionalization, there are three key points: first, we should try our best to let RMB go abroad; Second, in view of the fact that China's capital account has not been fully liberalized, it can make overseas RMB, like other freely convertible currencies, be used for deposit, loan, settlement and payment, asset management, investment, exchange rate hedging and other all-round business, forming its own market transaction and circulation scale; Third, in order to enable overseas institutions and natural persons to participate in and expand overseas RMB market holding and trading activities, overseas institutions and natural persons must be able to enjoy or partially enjoy the benefits of China's high economic growth through the RMB convertibility channel allowed by the Chinese government. Otherwise, overseas institutions and natural persons cannot have the enthusiasm to hold RMB

at the same time, we should consistently make full use of the relevant forces of international organizations and countries in the world, improve the international monetary system, and properly restrict the currency abuse of the major reserve currency issuing countries. We will support regional "currency regionalization" and monetary and financial cooperation, and reserve space for the internationalization of RMB. Especially in the process of actively promoting financial cooperation in Asia, we should seek common ground while reserving minor differences, and actively shape a good image of RMB as a "key currency" in the Asian region

it is necessary to control the possible risks of RMB internationalization. Therefore, it is necessary to arrange the order of RMB internationalization so that the process of RMB internationalization can adapt to China's macro-control ability and the development of financial market

the internationalization of RMB, on the one hand, means the expansion of the region and field of monetary function, which will bring impact on China's monetary policy. On the other hand, the process of RMB internationalization inevitably touches the problem of capital account and capital market opening to the outside world. Therefore, with the internationalization of RMB, we need to pay special attention to the policy collocation and process of capital account opening and exchange rate free floating range

under China's current monetary operation mechanism, RMB internationalization will further aggravate the accumulation of foreign exchange reserves in the short term. To promote the internationalization of RMB, the risk lies not only in the influence of internationalization itself on a country's monetary policy, but also in the transition process of capital account and exchange rate changes. The latter belongs to the risk of "transition", which may be caused by the relaxation of "price control"

therefore, the fundamental way to rece risks is to promote the marketization of China's finance as soon as possible. Only in this way can capital account opening and exchange rate floating become a natural trend. If China's problems can not be solved in the short term, we should try our best to rece the impact of capital account management and unrealistic "transition" of exchange rate Xia Bin)

10. With the expansion of the use of RMB in trade settlement, the construction of offshore local currency market has begun to take shape. The initial conditions for RMB internationalization have been relatively mature, and the realization of RMB capital account convertibility has entered the sprint stage. There are three main challenges to promote the internationalization of RMB: first, China is still an export-oriented country with a large degree of dependence on foreign trade and is vulnerable to the impact of fluctuations in the international market. To promote the internationalization of RMB, we must expand domestic demand in time and realize the optimization and upgrading of instrial structure. Secondly, the domestic financial system is relatively fragile. Once the financial system is liberalized, the amount of capital transactions caused by a large number of virtual financial derivatives will far exceed the amount of international trade in goods. If the speculation of international hot money can not be well controlled, it will bring great harm to the financial system. In addition, with China's graal liberalization of the capital account, in order to maintain the independence of monetary policy, we must rece unnecessary foreign exchange intervention. With the internationalization of RMB, exchange rate fluctuations will be a normal.