Digital currency will not lead to inflation

1. 1. Its quantity is too small compared with the currency in circulation; 2. digital currency is generally not used to buy goods. So digital money will not inflate.

2. No, it can be said that 100% is a fraud. In fact, even bitcoin countries are not allowed to trade at present. It's better to speculate in stocks than to have that money

3.

Digital currency is a kind of legal tender, which must be issued by the central bank. Both digital gold coin and cryptocurrency belong to digital currency, which is not a network virtual currency, because it is not limited to virtual space, but is often used for real goods and services transactions, such as bitcoin, Wright coin, bitstock, etc. at present, there are thousands of digital currencies issued around the world

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1. Impact on financial infrastructure

the decentralized mechanism of value exchange based on distributed ledger technology has changed the basic settings of gross and net settlement on which financial market infrastructure depends. The use of distributed ledgers also poses challenges to trading, clearing and settlement, as it promotes the disintermediation of traditional service providers in different markets and infrastructures. These changes may have potential impacts on market infrastructure other than retail payment systems, such as large payment systems, securities settlement systems or trading databases

If digital currency and distributed ledger based technology are widely used, it will bring challenges to the intermediary role of financial system participants, especially banks. As a financial intermediary, banks perform the ties of acting supervisors and supervise borrowers on behalf of depositors. Usually, banks also carry out liquidity and maturity conversion business to realize the financing from depositors to borrowers. If digital currency and distributed ledger are widely used, any subsequent disintermediation may have an impact on savings or credit evaluation mechanisms

4.

The role of digital currency:

1. First of all, the central bank's digital currency can provide a huge data base for monetary policy and macro Prudential policy, so that the regulatory authorities can collect real-time trading books of different frequency and different institutions according to their needs, and it is complete and real. This information advantage can help the central bank use policy tools more accurately and flexibly

Secondly, the central bank's digital currency technology can track the flow of funds and help the regulatory authorities to comprehensively monitor and assess financial risks. Finally, the central bank's digital money technology is concive to the transmission of interest rate of monetary policy. Digital currency technology supports "point-to-point" payment and settlement, which can improve the liquidity of market participants. Only the digital currency of the central bank, which is generally accepted by the whole society, can radiate this advantage to the participants of different financial markets, so as to improve the liquidity of financial markets. This will make the term structure of interest rate smoother and the transmission mechanism of interest rate smoother

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digital currency can be considered as a virtual currency based on node network and digital encryption algorithm. The core characteristics of digital currency are mainly reflected in three aspects: because it comes from some open algorithms, digital currency has no issuing subject, so no one or institution can control its issuing; Because the number of algorithm solutions is fixed, the total amount of digital currency is fixed, which fundamentally eliminates the possibility of inflation caused by the overuse of virtual currency; Because the transaction process needs the approval of each node in the network, the transaction process of digital currency is safe enough

5.

China's digital currency is as long as there is a mobile phone, no network, as long as the touch can be paid, and with detailed transaction records, it is very helpful to combat money laundering crime; This currency is mainly aimed at grabbing shares for Alipay, WeChat and POS terminals. It can also pave the way for RMB internationalization. Digital currency is not only safe and endorsed by the state, but the global central bank is pushing digital money. Now the digital currency is still in the testing stage. What time will it be popularized? It will have to wait until the Beijing Winter Olympic Games in February 2022 to fully promote the use

China's central bank's digital currency can be used for daily micro payments. Because it will be more stable with the endorsement of the state, the central bank's digital currency is different from bitcoin and Libra launched by Facebook. I give digital currency legal effect, and indivials can't refuse to accept it. At the same time, it is very convenient to use. It can be paid without binding any bank account. Digital currency will not cause inflation. Now it can be implemented and used in Shenzhen, xiong'an, Cheng, Suzhou and other cities. It also shows that the era of paperless is coming. Digital currency is a new concept with high technology content. In the future, RMB will enter the 3.0 era. Although the current digital currency is more powerful, it is still unable to put an end to money laundering and corruption

6. No
money can be divided into two types: one is commodity money, which is used as money by things with intrinsic value, such as gold, silver, copper, grain and cigarettes in special periods; The other is credit currency, which is enforced by national laws and whose intrinsic value is zero (or close to zero). For example, the paper currency used in most countries now is credit currency< No matter how much gold and silver coins are minted, there will be no inflation. This is because they are valuable commodities, and their mining and casting process are integrated with human labor. Only because they have a series of physical properties suitable for the medium of exchange, they are graally selected as currency, In addition to money, they have other uses as general commodities, so there is no inflation in the gold standard. Moreover, historically, in the period of metal currency, there was not enough gold, silver and copper for casting currency, and all dynasties were in trouble; Money shortage;, We can't find enough precious metals to make money. According to some people, the era of metal currency has always been accompanied by deflation. This is essentially because the exploitation of precious metals can't keep up with the speed of economic development, and there is no possibility of inflation<

after the instrial revolution, with the great development of proctivity, the rapid expansion of economic scale and the sharp increase in the demand for money, people finally understood that if they were still in the era of metal money, it would be far from enough to use all the gold and silver in the world to make money, so they later abolished the gold standard and promoted credit money, In other words, today's banknotes are as many as you want. The cost of acquiring them is too low, and their intrinsic value is close to zero. At this time, inflation is easy to occur, because the government always has the impulse to print more banknotes. A reasonable amount of money should be determined by the demand for commodity exchange. Each unit of money should correspond to a piece of resources in the economy. The growth rate of money should be consistent with the growth rate of the number of commodities, so as to ensure that inflation does not occur. Otherwise, if there is no corresponding economic resources for more issued banknotes, It will lead to a larger ratio between money and resources, and the need to use more money to buy the same piece of resources, that is, inflation

that's it.

7. 1: Money supply growth does not always dominate inflation. When the economy is not in a state of balanced growth, the change of economic situation is dominated by money demand. Only when the economy is in a state of equilibrium, or in a state of overheating, can money supply directly affect inflation. It is worth noting that in the current global financial environment, loose money supply may evolve into financial capital, which will proce a very uncertain inflation factor. 2: More money is not necessarily a symbol of more money. 3: the basic function of money is a trading tool, or an inflation tool under Keynesian theory. From these two functions, the growth rate of money supply is equal to GDP growth rate + deflator. That is to say, if GDP growth target and inflation target are determined, the growth rate of money supply can be determined. However, the annual growth rate of RMB exceeded 16% and reached 33% in 2009. Although inflation is not serious, asset prices fluctuate sharply. What does the decision-makers mean? The euro is popular in many countries with different levels of economic development and monitoring, so inflation is not easy to be accepted. How to determine the circulation of the euro? How can it be distributed among countries? It seems that the US dollar does not talk much about the issue of currency circulation. But the data shows that the circulation of US dollar is far lower than that of China? There seems to be a theoretical explanation: financial innovation makes it difficult to define money supply, so western countries, especially the United States, do not pay much attention to money supply, but only focus on interest rate. Is that true? Since it is claimed that interest rates are determined by the market, why does the Federal Reserve say that it will "raise interest rates"? Isn't this state control? I have some ideas, but the main problem is that. I hope to discuss with you
this article is from the macroeconomics edition of the National People's Congress Economic Forum http://www.pinggu.org/bbs/viewthread.php?tid=849022&page=1

8. In fact, any country (economy) issuing excessive money will cause inflation. First of all, you should be clear about the definition of inflation, that is, under the condition of paper currency circulation, because the money supply is greater than the actual demand for money, that is, the real purchasing power is greater than the output supply, which leads to the devaluation of money, resulting in a sustained and general rise in prices for a period of time. Its essence is that the total social demand is greater than the total social supply (supply is far less than demand), which leads to the rise of the nominal price of real commodity currency and the decline of the real purchasing power. So the crux of the problem is the demand and supply of money itself. I think what your teacher means is to let you analyze the relationship between money supply and demand in the United States. Because the currency issuance of the United States is not only in the form of cash in the commodity and domestic capital markets, but also in various forms of assets in the international capital market (various US dollar financial assets), special commodity markets (crude oil and gold are all priced in US dollars), so the demand for US dollars is diverse. In the specific economic environment, the relationship between supply and demand of US dollar is very complex, so we should not only pay attention to the increase of supply, but also pay attention to whether the demand increases in the same amount. For example, in the current economic situation, the purchasing power of the US dollar and its underlying assets is declining, and the excessive issuance of the US dollar will lead to inflation