Digital currency can improve the speed of money circulation

1.

The digital RMB red envelope of 10 million yuan issued by Shenzhen city has brought the development of e-money back to the people's vision

in fact, since April 2020, small-scale pilot projects of digital RMB have been carried out in Shenzhen, Cheng, Suzhou and xiong'an, and the pilot scale will be expanded to 28 provinces and cities in August 2020

as a socially recognized "super outlet", in addition to the high investment of digital currency related enterprises, its impact on the financial market is also of great research value

Policy evolution of the development of digital RMB

as early as 2014, the central bank has concted research layout on digital RMB, and discussed the development framework of digital RMB with major international financial institutions and research institutions in the 2016 digital currency seminar

after six years of development, China has initially developed the "pbctfp blockchain platform" and continuously promoted the pilot activities of digital RMB. It can be predicted that as today's technology and policy outlet, digital RMB will have excellent development prospects and extremely fast development speed in the next few years

Figure 1: Policy Evolution of digital RMB

with the improvement of China's national strength, digital RMB provides an opportunity to establish a "new system of RMB cross border settlement", which can promote RMB payment activities around the world and realize the internationalization of RMB

2. The total price of goods is a certain amount. First of all, it's faster than circulation. But it's certain that the circulation times of money will correspondingly rece their currency circulation, which is also that the circulation speed of money is faster than the circulation times

3. 1、 What are the types of digital currency
digital currency is an alternative to electronic currency. Both digital gold coin and password currency belong to digital currency. Digital currency can be basically divided into three categories:
1. Game currency that everyone is very familiar with. At first, the game currency obtained by players in stand-alone games can only be used by themselves in the game. With the establishment of the Internet portal and community, and the realization of game networking, these digital currencies have a "financial market". Players can directly trade freely, and can also trade online and offline
2. The special currency issued by the portal website or instant messaging service provider is used to purchase the services in the website. The main representative is QQ coin, which can be used in QQ's own mall
3. The most representative digital currency is the encrypted digital currency on the Internet, such as bitcoin, lightcoin, dogcoin, etc. represented by bitcoin, it is an electronic currency generated by open-source P2P software, which can query the source and circulation by using blockchain technology, and is an open-source encrypted, circulating and trading digital currency. It is mainly used for Internet financial investment, and can also be directly used in daily life as a new currency< What are the benefits of digital currency
it is not unreasonable that the central bank is preparing to study the issue of digital currency. Issuing digital currency can rece the high cost of issuing and circulating traditional banknotes; Enhance the convenience and transparency of economic transaction activities; Rece money laundering, tax evasion and other criminal activities; Enhance the central bank's control over money supply and circulation; To better support economic and social development and help Inclusive Finance realize in an all-round way; It also helps to build a new financial infrastructure, further improve the payment system, enhance the efficiency of payment and clearing, and promote the upgrading of economic quality and efficiency
the overall benefits are cost rection, convenient supervision and favorable to the financial system. In addition, what are the benefits to our common people, investors and major enterprises
now is the age of Internet, the evolution of currency is an inevitable trend, and currency digitization is undoubtedly in line with the trend of social development
nowadays, there are digital currencies of different sizes in the market. Although these digital currencies can not be regarded as legal currencies, they are more used as a financial investment project and a new technology in the future. Not only that, bitcoin, the first digital currency, circulates in every corner of the world just like money, but also has the characteristics of transaction, collection and convertibility. We can exchange digital currency for any country's currency, or use digital currency to buy offline real goods. At the same time, we can also do online payment like Microsoft and steam. People use it to pay, buy goods and exchange money; Investors use it for financial management and investment; Enterprises use it to develop more uses, constantly innovate science and technology, or promote their own procts. With the continuous progress of science and technology and the continuous development of digital Internet, the benefits of digital currency or the instries and technologies derived from digital currency are unimaginable in the future.

4. Mining in Inner Mongolia is deceptive

5. The faster money flows. The less money is needed in circulation, and vice versa. For example, one yuan currency performs the function of means of circulation or means of payment four times in a month, which plays the role of four yuan currency. If the amount of money remains unchanged and the circulation speed is accelerated, it is easy to push up prices and cause inflation. In Fisher's equation MV = py, when money quantity m and income y remain unchanged, the increase of circulation speed V will inevitably lead to the increase of price level P.

6. Xuezha said: with the increase of money circulation speed, the amount of money needed in the market exceeds the original base, and the excess money will inevitably return to the market.

7. Currency circulation speed: the average turnover times of unit currency in a certain period of time. For example, one yuan currency performs the function of means of circulation or means of payment four times in a month, which plays the role of four yuan currency. The faster money flows. The less money is needed in circulation, and vice versa
in this way, inflation can be curbed.

8.

The speed of money circulation is the ratio of money supply to total economic income (usually GDP). If the speed of money circulation is stable, monetary policy can achieve any ideal level of income by simply setting the total amount of money

in reality, the speed of money circulation is unstable, and the relationship between the total economic income and the total amount of various currencies changes with time

extended data:

influencing factors:

1. The impact of changes in residents' monetary income level and expenditure structure

generally, given the income level, there will be no major changes in consumption structure. When the income level is greatly improved, the consumption structure for high-end consumer goods will increase. In the process of savings, if the purchasing power is not realized, the rate of holding money is on the rise. This will slow down the speed of money circulation

2. The influence of instrial structure and proction specialization

the different proportion of instrial sectors with different proction cycles and different capital organic composition, as well as the different degree of professional division of social proction will affect the speed of money circulation. The departments with long proction cycle have slow capital turnover and relatively slow currency circulation; On the contrary, it is faster. The departments with high capital organic composition occupy more capital, which slows down the speed of money circulation; On the contrary, it will speed up

The more indivials and enterprises participate in operation and income distribution, the higher the overall social benefits, the faster the speed of money circulation, otherwise the speed of money circulation will be slow. The more developed the financial market is, the more money transactions other than commodity transactions account for, and the slower the speed of money circulation is, on the contrary, it is relatively faster

4. The impact of financial and settlement system

in a certain period of time, wages are paid several times, and each payment period is short, which will accelerate the speed of money circulation; On the contrary, it is slow. With the development of financial instry, we can adopt a variety of flexible settlement methods, rece the time of capital occupation, and speed up the speed of money circulation, otherwise, it will be slow

9. If we understand Fisher's equation from a mathematical point of view, it is easy to understand that M is inversely proportional to v. Fisher's formula: MV = Pt (M represents the average amount of money in circulation in a certain period of time; m represents the average amount of money in circulation in a certain period of time; V is the average turnover times of unit currency in a certain period, that is, the velocity of currency circulation; P is the weighted average of the prices of goods and services; T is the number of transactions of goods and services.) Fisher believes that M is an exogenous variable determined by factors outside the model; V is determined by social system and habits, so it is relatively stable for a long time and is regarded as a constant; Under the condition of full employment, the relative output level of T keeps a fixed proportion, which is also generally stable and can be regarded as a constant. So only the relationship between P and M is the most important. In this way, the trading equation is transformed into the quantity theory of money. Moreover, the theory of money quantity provides an explanation for the change of price level: the change of price level only comes from the change of money quantity. When m changes, P changes in the same proportion. Fisher believes that the purpose of people holding money is to trade. Thus, the theory of money quantity reveals the amount of money people hold under a given nominal total income. It reflects the theory of money demand quantity, also known as the theory of cash transaction quantity. Based on this equation, Friedman constructed a magnificent building of monetarism. Fisher Equation is also the foundation of modern money and banking

in fact, money, as an abstract commodity, is just a special commodity that serves as a general equivalent. One of the most important functions of money is to act as a medium of exchange. The more frequent the exchange, the more extensive the demand for media channels. There are two modes to meet this extensive demand, The first is to increase the speed of money circulation (credit card payment can increase the speed of circulation compared with cash payment), which is equivalent to increasing the number of existing money turnover; the second is to increase the money supply. Therefore, if the commodity carried by the ship of currency does not change much in a certain period of time, so that all these commodities can be circulated, either one ship can transport several times, or several ships can be selected to transport. In a word, the number of ships (currency) is inversely proportional to the number of transportation times (circulation speed). If there are more ships, the number of transportation times can be reced. If there are more transportation times, the number of ships can be reced.