Digital currency of the central bank

1. In the era of physical money, money itself has intrinsic value, so it can perform these functions of money. However, modern credit money or paper money itself has no value, why can it perform the function of money? This is because the credit currency is supported by the national credit, which has the nature of legal compensation and compulsion. National credit is not only the value basis for the standard currency to perform its monetary function, but also the basis for the state to monopolize the right to issue currency< At the same time, monetary policy is an important means for modern countries to adjust their economy. The change of money supply has a wide influence on economy. Nowadays, central banks all over the world make full use of monetary policy to regulate economic operation
monetary policy, like tax, police, court and other state machines, is the foundation of modern state operation and an important part of state machine. As long as there is no fundamental change in the social organization form of the state, the monetary system based on the national credit will always exist, and bitcoin and other virtual currencies will not become the standard currency of a country. Bitcoin is actually just the use of technology, which is at most an asset, not a real currency< Of course, credit money is prone to inflation. In a sense, people's concern about bitcoin reflects people's worry about inflation under the condition of credit currency. Therefore, central banks should strengthen liquidity management, reasonably regulate money supply and keep prices basically stable.