Is central bank digital currency worth investing in

1. The people's Bank of China has designed a two-tier architecture for digital currency
specifically, according to Yao Qian, director of China digital currency Research Institute, the design framework of central bank's digital currency is mainly convenient and efficient, safe and controllable, and popular development
as for the two-tier framework, the two-tier framework is the central bank and the commercial bank, based on the account and wallet. This framework is to combine the original bank account system with the account system based on digital currency wallet
in blockchain technology, digital currency is separated from legal currency system and bank account system. Otherwise, together, it will cause chaos. Considering this problem, Yao Qian introced digital currency wallet into the account system of commercial banks. In this way, an account can manage both electronic currency and digital currency. Of course, this kind of design has a great impact on the current banking system, but it is also a resource for commercial banks with mature system
how does digital currency wallet work in commercial banks
bank accounts and digital currency wallets of commercial banks have common management features. In this case, bank accounts and digital wallets have different positioning. According to the wallet standard designed by the central bank, a wallet is equal to a safe deposit box. According to the requirements of customers, the bank will manage the safe deposit box as all the properties of cryptocurrency. This framework adds a Digital Wallet ID field to the bank account. In this way, the wallet has the function of a safe deposit box and does not participate in the business, so as to avoid affecting the core business of the bank
digital currency transfer can be directly transferred in the commercial banking system, or through the note issuing bank using the client-side digital wallet, direct point-to-point transactions, so that there is no need to rely on inter-bank payment between account banks< In a word, digital currency wallet is the personal wallet in the commercial banking system
theoretically, the payment system deals with demand deposits, while digital currency is in the category of cash
is the digital currency issued by the central bank decentralized
Yao Qian said that the biggest issue facing the instry now is whether decentralized distributed ledger should be used at the top level
Central Bank digital currency is more convenient and can develop into controllable anonymity through centralized issuance and account based weak association. However, in the digital world, we cannot confuse the economy and finance behind the numbers. Although they are all numbers, they represent different assets, so the central bank will keep them in mind when designing. We want to have a mature financial infrastructure for legal digital currency, but considering that the note issuing bank is only responsible for the digital currency itself, and the account bank is responsible for the actual management business, so as long as the specific application is implemented, the note issuing bank and the account bank will perform their ties and do their best
then the characteristics of the central bank's digital currency are
1. Digital currency, like RMB, has stable value
2. The operation mode is the same as RMB, which is endorsed by the national credit and issued by the central bank, and all commercial banks exchange it into the market
3. Digital currency issuance relies on big data, because it has the possibility of real-time collection of currency bookkeeping, flow, transaction, etc., which can provide help in anti money laundering
4. After digital currency replaces paper currency, it will play a positive role in preventing counterfeit banknotes, changing change, and preventing damage and loss ring transaction storage
5. It will rece the waste of resources. The proction and printing of paper money need cost, while the proction of digital currency depends on big data, so it will rece the waste of resources
therefore, with the advent of the central bank's digital currency, personal participation will have less opportunities to make money
I hope it can help you
hope to adopt it

2. First of all, there is a problem with this statement. What is the investment currency? Will you use 100 yuan to trade and buy the same 100 yuan from others? 100 yuan without collection value. Therefore, it is necessary to make clear that the central bank issues currency, which is based on the unified management of domestic monetary policy. It is a substitute for paper currency, not a kind of investment similar to bitcoin, so there is no investment problem

since the great development of domestic online payment, the central bank has been promoting the research and development of data currency, recing the issue of paper currency and issuing it in the form of electronic currency

in view of the nature of currency, sovereign countries all over the world are the same, and other entities are not allowed to issue legal currency. So we saw fcaebook issue Libra virtual currency based on blockchain, and the US government also expressed concern. Zuckerberg attended questions in Congress many times

electronization is indeed a trend, but all countries can only allow the central bank to take the lead. After the digital currency photo of ABC test appeared in the market yesterday, the stock market also had some waves. The central bank's enthusiasm for digital currency has always been strong, so the development of e-currency and subsequent real issuance should be ahead of other countries

of course, the enthusiasm of the central bank is also based on the situation that the domestic electronic payment is leading the world, and the payment habit of Chinese people has been formed. In the future, it will be another scene if it is expanded under the appropriate scene. The digital currency of the central bank is the replacement of paper money
its functions and properties are exactly the same as paper money, but its form is digital. We define it as "digital payment instrument with value characteristics"

the application scenario of digital currency is like this: as long as two people have DCEP digital wallets on their mobile phones, there is no need to connect to the network. As long as the mobile phone is a little bit, when two mobile phones touch each other, the digital currency in one person's digital wallet can be transferred to another person, that is, there is no need to bind any bank account, Unlike now, WeChat and Alipay need to bind a bank card, but DCEP doesn't need it.

this means that DCEP can circulate like paper money. But how is it different from bitcoin and other digital currencies?
the central bank's digital currency belongs to legal currency. Like cash, the central bank's digital currency has unlimited legal compensation, that is to say, you can't refuse to accept DCEP, which is backed by the central bank and the whole national system

now many private Payment institutions or platforms will set up various payment barriers, such as WeChat's money can not be transferred to Alipay, Alipay's money can not be transferred to WeChat, but for the central bank's digital currency, as long as the use of electronic payment places, it must accept the central bank's digital currency.

so how do indivials need to invest in DCEP?
at present, DCEP is probably equal to RMB, so the appreciation space can not be said to be small. Its value is equivalent to RMB, and it is equivalent to people who speculate in foreign exchange can participate in its investment, and it will certainly not float as much as other blockchain virtual currencies, which will certainly disrupt the financial system of the whole country, Since the state can guarantee the stability of RMB exchange rate, it is believed that the stability of legal currency can also be guaranteed

at present, all countries and institutions have plans to launch their own digital currency. The most famous one is lbra launched by Facebook. For the launch of digital currency, we also cross the river by feeling the stone. Any financial innovation has its deep meaning, which is promoting the reform of the whole society.

3. The central bank has not yet issued digital currency. If the issue is the same as the current RMB, it is only in different forms<

popular science: digital currency (digiccy) is an alternative currency in the form of electronic currency. Both digital gold coin and password currency belong to digital currency. It can not be completely equivalent to the virtual currency in the virtual world, because it is often used for real goods and services transactions, not limited to online games and other virtual space. At present, the central bank does not recognize or issue digital currency, and digital currency does not have to have a benchmark currency. The popular digital currencies in 2015 include bitcoin, lightcoin, bitstock, etc. At present, there are thousands of digital currencies issued all over the world.

4.

1. High liquidity

every good and reliable digital currency is essential. Every digital currency should have strong liquidity, not only in the scope of third-party trading platform, but also in offline entities or countries like bitcoin

Second, lower volatility

generally, volatility comes from the influence of third-party trading platform, which is similar to stock trading. Strong operators need to control the market to prevent the digital currency market from soaring or plummeting. Therefore, the volatility of a digital currency can show whether the digital currency can develop stably

Third, tradability one of the most important properties of digital currency is tradability. If a digital currency does not have tradability, the digital currency is basically useless. Only when a digital currency has tradability can it have liquidity and volatility

Fourth, the nature of decentralization digital currency has the characteristics of decentralization. Digital money is neither controlled nor manipulated by centralized entities. That is to say, no indivial or third party can obtain the user's digital currency

Fifth, the value of digital currency is increasing based on the market demand. It is not subject to government regulation or operation, which is not like legal money. The rise and fall of digital currency price depends on the transactions between users on the third-party trading platform

5.

Digital currency is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of a specific virtual community. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form

in recent years, the excessive issuance of banknotes has led to the aggravation of inflation, the frequent security crisis of third-party payment, and the graal maturity of blockchain technology, so decentralized digital currencies such as bitcoin, Ethereum and reborn have emerged. Digital currency has the advantages of low transaction cost, fast transaction speed, high anonymity and fixed amount of money

At the same time, the use scenarios of digital currency become more and more abundant, which makes the user acceptance grow. At present, the use of digital currency has covered all kinds of scenes, such as shopping consumption, wage payment, transportation, travel, takeout settlement and tuition payment. The expanding landing scene has also brought a wider range of consumers. In general, although the number of users of digital currency still accounts for a small proportion of the total population, the number of users is growing. At present, the utilization rate of digital currency has exceeded 10% in 10 countries around the world

In June 2019, Facebook launched Libra virtual cryptocurrency, which has caused worldwide influence. The emergence of Libra may form a global super sovereign currency, thus affecting the traditional transaction settlement currency. For China, the emergence of Libra, on the one hand, will have an impact on China's traditional currency and threaten the sovereign status of China's currency; On the other hand, because RMB is not included in Libra's basket of currencies, it will rece the reserve demand of RMB by central banks, thus hindering the internationalization of RMB. In response to this threat, CCTV timely launched the central bank digital currency. In September 2019, according to China Daily, the central bank's digital currency closed-loop test has begun, and the central bank's digital currency is about to come out

coincidentally, in addition to China, central banks around the world have also announced that they will launch a centralized digital currency based on national credit. In 2015, Ecuador took the lead in launching the national version of digital currency, which can not only rece the issuance cost and increase the convenience, but also enable people in remote areas who cannot have banking resources to obtain financial services through the digital platform. At present, Canada, Brazil, Norway, the United Kingdom and other countries are studying the central bank legal digital currency, while the Bahamas, Sweden, Russia and other countries are discussing the possibility of digital currency issuance. Generally speaking, the developing countries which have received a great impact on digital currency have supported legal digital currency for financial inclusion, breaking through sanctions and other reasons

for the above data and analysis, please refer to the in depth analysis report on business model innovation and investment opportunities of China's blockchain instry published by foresight Instry Research Institute . Meanwhile, foresight Instry Research Institute also provides instrial big data, instrial planning, instrial declaration, instrial park planning, instrial investment promotion and other solutions