Why do countries develop digital currency

1. The issue of digital currency has many benefits and is imperative. According to the central bank, digital money and paper money will coexist for a long time to come. When people go to the bank to withdraw money, they can not only withdraw cash directly, but also exchange it into digital currency. In Xiaobian's opinion, the establishment and issuance of digital currency system can not only make people's transactions more convenient and safe, but also graally weaken the proportion of paper money in the real circulation, which will also have a positive impact on the electronic disk of postal money card
when people are used to digital currency, paper money will graally withdraw from the circulation market and enter the collection field. In the new environment of payment and circulation, the traditional paper money will become a symbol of an era and a memory of people. The paper money that used to circulate in the market will also become a kind of cultural and artistic investment goods, active on the electronic disk of the post money card. And those earlier and even rarer coins will also stimulate their prices to rise in this situation. It can be seen that the central bank's graal promotion of digital currency will have a profound impact on people's living habits and investment and financial management, which is worth looking forward to Sohu)
however, digital currency does not have to be used for payment. Some domestic application-oriented digital currencies have begun to find another shortcut and come out with a different truth. For example, coin Ying China crowdfunding project token; Puyin group launched the tea based digital currency Puyin.

2. It is an inevitable trend for the central bank to prepare to issue digital currency. bitcoin, as the representative of digital currency, is in the forefront of the exploration of currency form. Most countries in the world love and hate bitcoin, especially China's bitcoin launched a series of attacks, but bitcoin is still standing, showing strong vitality
however, the digital currency that the central bank plans to issue has the monetary attribute and has the credit endorsement of the central bank. The central bank's version of digital money will first be applied to the bill market. It is still difficult for the central bank to popularize the digital currency in China, because the degree of economic development is different across the country
at the same time, there are some applied digital currencies in China. For example, the Puyin digital currency launched by Puyin group is a standard digital currency with credit endorsement of related tea assets.

3.

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

4.

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 illegal

the 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

5.

According to reports, since 2014, the people's Bank of China has set up a special research team, and further enriched its strength in early 2015 to conct in-depth research on digital currency issuance and business operation framework, key technologies of digital currency, and digital currency issuance and circulation environment

At the same time, digital currency is born in the existing financial system, which is bound to be affected by the existing payment system and information technology. Theoretically speaking, the payment system mainly deals with the demand deposit in the broad money, while the digital currency mainly belongs to the category of cash

Article source: bit110 network

6. In fact, digital currency is the corresponding M0 currency, that is, the corresponding paper currency. It just exists in another form. Like some rubber coins and coins, it is legal tender and has all the functions of legal tender

7. Inflation, printing money also costs, technology, the face value of the note is too small, printing money will lose money, technology is not good, easy to be lawless elements, but also by the North Korean side of the gold fat boy imitation, relatively suffer losses. If inflation is out of control and you have to carry a big bag of banknotes on the street, isn't it troublesome? Change into digital currency, brush a card, more press a few times zero, more convenient