Should digital currency be used as data
It's illegal
First, digital currency ICO is illegal in China.
in September 2017, the people's Bank of China issued an announcement on preventing the financing risk of token issuance, which formally determined that ICO is illegal financing without approval, and no organization or indivial is allowed to participate
later, it was announced on April 23, 2018 that the left and right digital currency ICO platforms had all withdrawn from the Chinese market, so the current ICO is illegal in China
Second, digital currency exchange is prohibited in China.
after announcing that ICO is an illegal financing activity, the central bank also listed services such as trading, exchange, pricing and information intermediary for virtual currency as prohibited items, which means that digital currency exchange is illegal in China
all trading platforms, including bitcoin China, okcion and fire coin, announced in 2018 that they would stop the RMB recharge business and graally shut down their trading platforms. As of April 2018, all digital currency exchanges had completely withdrawn from the Chinese market
digital currency generally has a special digital currency exchange. We can buy the digital currency we need in our digital currency exchange
we can buy from our friends in addition to the exchange. If a friend has something, you can discuss and ask if he can sell it to you
we can buy our digital currency from traders nearby if we need more
we accept payment by digital currency payment service. If we open a physical store, we can support payment by digital currency, so we can also get our digital currency
finally, we can get digital currency by mining, and we can get digital currency by equipping mining machine to work mining, such as investing more hardware
digital currency trading: it can be traded only after RMB or digital currency is recharged in a third-party digital currency exchange
purchase of digital currency: no matter how many coins you buy, there is no limit. For example, if bitcoin is 100000 yuan, you can buy 0.0001, and there is no limit on how many coins you can buy or sell
digital currency trading time: 365 days a year, 24 hours a day, can be traded
Digital assets and digital currency are not the same thing
Digital assets refer to the non monetary assets owned or controlled by enterprises or indivials in the form of electronic data and held in daily activities for sale or in the process of proction. The emergence of digital assets benefits from office automation, digital assets rely on the development of electronic payment system, its prospects are predictable2. Digital currency
digital currency refers to the digitization of currency. Digitization doesn't mean scanning. This is just like digital signature. Digital signature does not mean scanning your signature into a digital image, or using the touchpad to obtain the signature, let alone your signature
digital currency is often mistaken for virtual currency. But virtual currency refers to non real currency. For example, when you play "Three Kingdoms" (game) or "grand Voyage", you have money, and that money is virtual. Of course, the virtual money will also have its real value
for example, if you buy her / his account from another player, you can get all the virtual assets of that player, and then it will be much easier for you to continue playing. Virtual money is not necessarily digital. For example, children play games with pebbles as virtual currency
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characteristics of digital assets:
1. High price. Because these application software with special purpose is specially developed for a specific work, its cost is relatively high, and its price is not lower than the price of fixed assets of factory buildings
(2) strong attachment. Application software must be supported by computer hardware and system software in order to play its role3. Strong interaction. Even the simplest application software also has some interactive functions, such as the error prompt to the operator, which is the most basic advantage of IT instry procts
The quantity is infinite. Digital assets as assets are scarce (because not all enterprises or indivials can create digital assets), but its supply can be unlimited. However, tangible assets are always limited e to the limitation of property and storage space Cost decreasing. The proction cost of tangible assets is positively proportional to the proction quantity References:
Network: digital assets
Network: digital currency
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 mechanismsIt can not be said to be a fraud, but there are certain risks, because digital gold currency is a form of physical currency, and its deposits are measured in gold rather than legal currency. Therefore, the purchasing power fluctuation of digital gold currency is related to the gold price. If the price of gold goes up, it becomes more valuable. If the price of gold goes down, it loses value
since there is no specific financial regulation to regulate digital gold money suppliers, they operate in a self-regulation way. Digital gold money suppliers are not banks, so banking regulations are not applicable
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to explore the connotation of digital currency, we must clarify some concepts of model lake. For example, is it legal digital currency dominated by the central bank or illegal private fixed digital currency; Encryption of digital currency or electronic currency; Is it "selling dog meat with sheep's head"; "Bad money"
new technology does make the conceptual boundary of money more blurred. Theoretically speaking, the new monetary economics points out the possibility of the disappearance of money, that is, legal paper money is no longer the only medium of transaction, and is eventually replaced by financial assets issued by the private sector that generate monetary income
in reality, although the status of fiat money is still unshakable, there have been various local scenes of private money in history, such as the universal warra system in Germany in the 1920s. Now the digital currency with the characteristics of decentralization makes the challenge of private currency increasingly prominent< br />