The influence and function of digital currency on paper money

1. The future world will be a digital world, and money will develop from paper money in the past to digital money in the future, which is a trend. Because in order to adapt to the digital world, the future currency must also be digital. It can be predicted that digital currency will be safer, faster and more convenient in the future
many procts of blockchain technology are not currency, although they are called currency. Under the guise of digital currency investment, it is a Ponzi scheme. Even some of them don't even have blockchain technology, which is just a fake number to cheat people.

2. The future world will be a digital world, and money will develop from paper money in the past to digital money in the future, which is a trend. Because in order to adapt to the digital world, the future currency must also be digital. It can be predicted that digital currency will be safer, faster and more convenient in the future. Now many blockchain technology procts, although its name is what currency, but in fact it is not currency. Under the guise of digital currency investment, it is a Ponzi scheme. Even some of them don't even have blockchain technology, which is just a fake number to cheat people.

3.

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

4. It is reasonable to say that, but it is very difficult to popularize digital currency, especially in some remote mountainous areas. Of course, it is feasible in the developed areas along the east coast, river and road. The popularization of digital currency is also very simple, with certain supporting infrastructure. At the beginning of this year, the central bank held a digital currency seminar and planned to issue its own digital currency. But this kind of digital currency is different from the decentralized digital currencies such as bitcoin, Ruitai and Laite. The control of the digital currency issued by the central bank is in the central bank, which is the digitization of RMB.

5. Digital currency has no effect on the collection of the first, second and third sets of RMB that have been withdrawn from circulation and the fourth set of RMB and the 99 version of RMB that the central bank has only collected but not paid. However, it will have a greater adverse effect on the collection of the fifth set of RMB 05 and 15 versions that are still in circulation and distribution!

6. The digital currency issued by the central bank is only a substitute for banknotes and coins. In fact, it is a kind of electronic cash, which has little impact on monetary policy and commercial banks. In the traditional currency issuance, the cash in circulation is actually the direct debt of the central bank to the public, only because of technical constraints and cost considerations, the central bank issues cash through commercial banks. With the progress of technology, it is possible for the central bank to issue money directly to indivial and enterprise accounts in the form of digital currency. E-cash flow is still through the central bank and financial institutions, and then to enterprises and indivials. In terms of money manufacturing channels, circulation links and functions, e-cash flow is exactly the same as paper money

e-cash flow still flows through the central bank and financial institutions to enterprises and indivials, which is identical with paper money in terms of money creation channels, circulation links and functions, and does not break away from the scope of traditional monetary policy regulation. The main function of e-cash is to facilitate transaction payment
considering that the development of non cash payment methods such as third-party payment has greatly facilitated transaction payment in recent years, the impact of e-cash on money transaction demand is limited, and the overall impact on monetary policy is not significant. The extent to which e-cash is accepted by the public depends on its convenience and security.

7. The main function of paper money is to represent the currency to carry out the function of circulation means. Of course, paper money can also function as a means of payment. In some countries, paper money can also function as a world currency
paper currency is a value symbol issued by the state and forced to circulate. It is the representative of metal currency. It has no value in itself, but only performs the function of means of circulation and means of payment instead of metal currency
banknotes perform the function of means of storage. The so-called means of storage is to store money as a representative of social wealth. In real life, what people store most is not enough gold and silver bars, but banknotes.

8. The impact of digital currency on paper money is inevitable, but it will not completely replace paper money. The central bank's digital currency is the digital replacement of paper money. The functions and properties of digital currency are exactly the same as paper money, but its form is digital. The central bank's digital currency DC / EP should start from M0, that is to say, it should start from the replacement of banknotes and coins in circulation by digital currency, not to replace all RMB. In fact, the balance in the commercial bank account already exists in the form of digitization, so there is no need to replace it
the current network transmission of digital RMB system (DC / EP) information is the testing content in the process of technology research and development, but it does not mean that the digital RMB is officially launched. At the current stage, the internal closed pilot test will be concted in Shenzhen, Suzhou, xiong'an, Cheng and the future Winter Olympic Games
digital currency based on blockchain has al characteristics. On the one hand, it can replace the existing inefficient cross-border payment and settlement system and promote the development of trade; On the other hand, because of its decentralized, autonomous and anonymous nature, it is easy to cause economic fluctuations and encourage criminal activities
the Xueshuo innovation blockchain Technology Workstation of Lianqiao ecation online is the only approved "blockchain Technology Specialty" pilot workstation of "smart learning workshop 2020 Xueshuo innovation workstation" launched by the school planning, construction and development center of the Ministry of ecation of China. Based on providing diversified growth paths for students, the professional station promotes the reform of the training mode of the combination of professional degree research, proction, learning and research, and constructs the applied and compound talent training system.