Digital currency and CMC

1.

1、 Different definitions:

1. virtual currency:

virtual currency refers to non real currency

digital currency:

digital currency is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy

3. Cryptocurrency:

cryptocurrency is a kind of transaction medium that uses cryptography principles to ensure transaction security and control the creation of transaction units

4. Token (token):

a kind of article whose shape and size are similar to currency, but the scope of use is limited and has no currency effect, and its token is the homonym of token in English

Second, the characteristics are different:

1; It can also be said that virtual currency is personalized currency. In another way, it can also be called information currency

2. Digital currency:

is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities

Cryptocurrency:

cryptocurrency is based on the decentralized consensus mechanism, which is opposite to the banking and financial system relying on the centralized regulatory system

4. Token (token):

usually needs to be exchanged for money, used in shops, playgrounds, mass transportation and other places, as a voucher to use services and exchange goods

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at present, digital currency is more like an investment proct, because it lacks a strong guarantee agency to maintain its price stability, and its role as a value measure has not yet appeared, so it can not be used as a means of payment. As an investment proct, digital currency cannot develop without trading platform, operating company and investment company

digital currency is a double-edged sword. On the one hand, the blockchain technology it relies on has been decentralized and can be used in other fields except digital currency, which is one of the reasons why bitcoin is popular; On the other hand, if digital currency is widely used by the public as a kind of currency, it will have a huge impact on the effectiveness of monetary policy, financial infrastructure, financial market and financial stability

2.

1. The concept range is different. Bitcoin is a kind of digital currency, and the concept of digital currency covers bitcoin

However, some digital currencies have independent issuers

The biggest difference between bitcoin and other virtual currencies is that the total quantity of bitcoin is very limited and it has a strong scarcity. The monetary system used to have no more than 10.5 million in four years, after which the total number will be permanently limited to 21 million

digital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy. Bitcoin is a digital currency

digital currency is different from the virtual currency in the virtual world, because it can be used for real goods and services transactions, not limited to online games. The early digital currency (digital gold currency) is a form of electronic currency named after the weight of gold

today's digital currencies, such as bitcoin, lettercoin and ppcoin, are electronic currencies created, issued and circulated by means of check sum cryptography. It is characterized by the use of P2P peer-to-peer network technology to issue, manage and circulate currency. In theory, it avoids bureaucratic examination and approval, so that everyone has the right to issue currency

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illegal digital currency

in recent years, "virtual currency" represented by bitcoin, Ethernet currency and Leyte currency has been traded centrally on some Internet platforms. With the help of financial technology, the price of these "currencies" has graally spread to investment, financing and other financial fields, which has aroused wide attention from all walks of life

not long ago, the people's Bank of China and other seven ministries and commissions jointly issued the announcement on preventing the financing risk of token issuance, which clearly regulated the relevant behaviors. Experts pointed out that "virtual currency" is not legal tender (legal currency) issued by monetary authorities, but a specific virtual commodity in essence

therefore, it is undoubtedly a great legal and economic risk to think that "virtual currency" has or will have the nature of legal tender and to carry out speculation, network fund-raising, lending and financing

3.

1. Application of different

digital currency: fast, economic and safe payment and settlement; Bill finance and supply chain finance; The real right of collateral is digitalized

e-money: the seller sends the buyer's payment instructions to the seller's acquiring bank through the payment gateway; The acquiring bank obtains the authorization from the issuing bank through the bank card network, and sends the authorization information back to the seller through the payment gateway; After obtaining the authorization, the Seller shall send the buyer the shopping completion information. If payment acquisition and payment authorization cannot be completed at the same time, the seller should send payment acquisition request to the acquiring bank through the payment gateway, and transfer the transaction funds from the buyer to the seller's account. The final inter-bank settlement is completed by the payment system between banks

2. Different characteristics

digital currency is characterized by low transaction cost, fast transaction speed and high anonymity

e-currency is characterized by anonymity, saving transaction cost, saving transmission cost, small holding risk, flexible and convenient payment, anti-counterfeiting and anti repetition, and non traceability

Digital currency can be divided into three categories: completely closed, unrelated to the real economy and only used in specific virtual communities, such as world of warcraft gold; It can be purchased in real currency but not converted back to real currency, and can be used to purchase virtual goods and services, such as Facebook credit; It can exchange and redeem with real currency according to a certain ratio. It can purchase both virtual goods and services and real goods and services, such as bitcoin

e-money: e-cash based on the Internet environment and keeping the binary data representing the value of money in the hard disk of the computer terminal; An electronic wallet that keeps the value of money in an IC card and can be circulated out of the bank payment system

4. After a "thousand exchanges" war in the currency circle, the exchange is now in an unsaturated competition stage, because the moat at the head is not wide enough, the competition barrier is not hard enough, and the competition that everyone wants to win is very big. Globally, the total amount of digital asset trading is a growing market. As the top of the whole instry's food chain, the exchange is marching into a "new continent of the digital world", The market is big enough; With the continuous iteration of technology and the increasing of application scenarios, the needs of users are also constantly diversified, with a hundred flowers blooming and a hundred schools of thought contending, each with its own characteristics. But after all, "safety first"
the security of exchanges is an eternal topic
as the gathering place of interests, the game of interests behind may create evil links. Looking back on the development history of digital currency exchange, we can see a history full of glory and darkness. Glory is that it continues to provide users with more and more trading services and categories. Unfortunately, in the early stage of the instry, there was a lack of system. Most of the traditional exchanges were highly centralized. As the vested interests, they were opaque in assets, unfair in the distribution of interests, weak in the underlying structure, backward in security technology, chaotic in currency rules, and even dark box operation. In order to promote the global blockchain instry into a healthy development state, the market urgently needs an innovative, democratic, transparent, equal, free and safe trading environment to cope with the upgrading and iteration of the blockchain instry and promote the formation of a benign competition pattern in the global exchanges
the endless events tell us that history will not forget the instrial revolution and innovation mission of the blockchain instry, but also the hope brought by the blockchain to the global trust mechanism and the beautiful vision of redefining the world. Because of this, based on our deep understanding of the blockchain revolution and our goal of making a key contribution to the global blockchain business, we are striving to "pick one from a thousand miles" the most reliable blockchain asset trading platform

as an investor in the currency circle, the big knife of asset security is always hanging on his head. We all realize that the currency circle is a place where risks gather, so we don't even have the courage to recommend investment opportunities to our relatives and friends. Not to mention the drastic fluctuations in token trading, even buying and hoarding coins in the exchange are not bold to recommend. Because in the current stage of weak supervision, many exchange accidents and security news emerge in an endless stream, which means that a careless friend's assets will be swept away. When this wave of bear market came, we saw too many exchanges go bankrupt because of poor profits. At this time, conscientious exchanges will return the token to users, but most of them will roll up the token after they declare bankruptcy. There is "Mentougou" before and "fcoin" after. At this time, users react: you want to earn the profits of the transaction, people are interested in your principal. After seeing too much news like this, I seldom recommend buying coins to friends who are interested in investing in the currency circle

until I also experienced the "312" currency disaster in 2020, fortunately, my exchange adopted the circuit breaker mechanism in time to deal with it, so that I reced the panic and cut the flesh. Until now, the market has come back, experienced the return of capital and made profits, I carefully considered recommending this exchange; In this currency disaster, LOEX Lein of this exchange took correct and timely measures to protect the interests of users, won good reputation of users, and stood the test before I really took action and recommended it to my friends
the exchange, which has been operating for two years and has kept a record of zero security failures, has captured the rigid demand of many investors: asset security since its emergence. LOEX always adheres to the principle of user first and safety first, provides users with a safe, stable and convenient digital asset trading platform, and is committed to becoming a leader in the era of digital economy
first of all, LOEX ren operates openly through smart contracts
every user's transaction can be clearly observed through the EOS browser to ensure that your transaction is real. At the same time, because your assets are no longer handed over to the official team of LOEX ren, they are put in a place called "smart contract". Public rules ensure that your assets are smart and your EOS account is free to enter and leave, which ensures the safety of your assets. This is a safe transition to decentralization
next, LOEX also has AI program automatic detection
fault handling: support cluster expansion and active / standby operation
monitoring and early warning: real time monitoring of functional moles and timely early warning of abnormal moles
operation and maintenance center: it has a complete server cluster and database maintenance platform
protection measures: DDoS protection, intelligent ban, remote disaster recovery,
risk control management
we have a cross chain hosting cooperation system
the security system cooperates with Manwu District, know Chuangyu and other well-known enterprises
we have reached in-depth cooperation with the above-mentioned well-known institutions in terms of security. The security institutions provide a series of code audit services for smart contract projects, and continue to provide security audit services after the code upgrade of the project party. At the same time, the organization team will also provide long-term safety testing services to LOEX
therefore, what LOEX can do is secure asset protection, risk screening of currency projects, and security behavior inspection of exchange users
financial management cooperates with famous Wall Street AA level quantitative team
in the future, it can make LOEX exchange more secure and reliable. LOEX cross chain hosting can bring a large number of application scenarios to customers. LOEX exchange can provide sharing depth for all partners of loex.io, so that customers can have better circulation and trading depth in the exchange, and complete safe startup.

5.

1、 Different monetary attributes

1. Digital currency:

digital currency belongs to legal tender

2. Wechat:

wechat belongs to the third-party payment instrument

3, Alipay:

Alipay belongs to the third party payment tool. p>

2. Different issuers

1. Digital currency:

the issuer of digital currency is the central bank

2. Wechat:

the clearing Party of wechat is a commercial bank

3, Alipay:

Alipay's settlement party is commercial bank. p>

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in the third-party payment mode, the buyer uses the account provided by the third-party platform to pay for the goods (to the third party), and the third party notifies the seller of the arrival of the goods and requires delivery; After receiving the goods, inspecting the goods and confirming, the buyer shall notify the third party for payment; The third party transfers the money to the seller's account

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:

1. Due to some open algorithms, digital currency has no issuing subject, so no one or organization can control its issuing

Because the number of algorithm solutions is determined, the total amount of digital currency is fixed, which fundamentally eliminates the possibility of inflation caused by the overuse of virtual currency

3. Because the transaction process needs the approval of each node in the network, the transaction process of digital currency is safe enough

6. Is a number one thing? These two digital currencies are not the same thing, because they are two different platforms.

7. On the issue of issuing their own digital currency, central banks are always less thunderous. Central banks around the world are considering issuing their own digital currencies to compete with cryptocurrencies such as bitcoin, but they have been unable to do so for a long time

the media's attention to the central bank's digital currency has increased significantly, especially after Zuckerberg testified in Congress on the Libra issue and Christina Lagarde acknowledged the "clear demand" for stable currency at her first media reception as president of the European Central Bank, which seems to have changed the public's view on this matter, Let many people in cryptocurrency community think that cbdcs is in sight<

according to the latest survey report released by the bank for International Settlements, central banks in the past seven years have been investigating this technology and assessing its impact. Of the 63 central banks surveyed, 55 said they were unlikely to issue cbdcs in the next three years, and only one reported that they were "highly likely to issue large-scale cbdcs in the next three to six years."

although the proportion of central banks studying cbdcs is very high, the crux of the problem is that it is mainly theoretical and investigative work. Only five central banks have concted more in-depth research and real project development or experimentation - but that still does not mean that they will necessarily issue cbdcs

through close observation, it is more and more obvious that both Libra recently released by Facebook and the new stable currency assets have had a significant impact on the central bank. Today's situation took hundreds of years to form, but it changed in a few months; Competition, the most terrifying and unfamiliar concept that has never been thought of before and penetrated into the elite society of central banks, is now knocking at the door

it can be said that the solution to the current situation is still unclear. Some people who are familiar with these things even say that they are bluffing. However, in Lagarde's own words, the slow and wait-and-see regulatory approach can no longer meet the needs

1. What is central bank digital currency<

what is the difference between central bank digital currency CBDC and other digital currencies

CBDC is a new form of currency, which is directly issued by the central bank in digital form as legal tender. The current form of legal currency is cash, reserve deposit or balance settlement< There are two main differences between CBDC and other digital currencies (including cryptocurrency and other forms of central bank currency):

1. CBDC has nothing to do with cryptoassets. They're not decentralized, they don't have to be blockchain based, and they're certainly not anonymous, they're not unlicensed, they're not censored< 2. Contrary to the current digital cash, the operation structure of CBDC will be different from other forms of central bank currency. CBDC has more powerful functions. They are programmable, can generate interest, can be cleared in near real time, and have cheaper handling charges and wider openness

when designing CBDC, the speed of central banks is different. Different central banks adopt their own approach. However, in general, there are three problems being explored: whether CBDC should be based on token or account number, whether CBDC should be batch (only open to banks) or retail (open to the public), and whether it should be based on DLT

when CBDC is to be implemented, things will become complicated, and there are many thorny problems to be considered

for example, once CBDC is launched, does it need to cancel cash? Should CBDC carry interest? Should they have face value like cash? Or linked to the total price index? What impact will this have on commercial banks? What about anonymity and privacy? All these questions need to be answered<

2. Motivation for issuing CBDC

in the 2017 staff discussion paper, the Bank of Canada gave six reasons for issuing CBDC in an article entitled "central bank digital currency: motivation and impact":

1. Ensure that the central bank provides sufficient cash to the public, and maintain the seigniorage revenue of the central bank

2, Support non-traditional monetary policy

3. Rece overall risk and improve financial stability

4. Improve payment competitiveness

5. Promote financial inclusiveness

6. Curb criminal activities

looking back at the bank for International Settlements survey we analyzed earlier, payment security and domestic efficiency are selected as the most important motives of the central bank. According to a large number of papers published by the central bank and other large financial institutions, for developed countries, the transformation into a cashless society is the main driving factor, while for developing countries, financial inclusiveness, cost rection and operational efficiency are the main motivation

throughout the rest of the reports and the literature that can be found, the fierce competition brought about by bitcoin and other innovations in the cryptocurrency instry, as well as the clear need for "one step ahead", of course, are not listed as the reasons for issuing CBDC< The advantages and potential risks of CBDC are very low.

if the central bank starts to launch CBDC and succeeds in the end, there are many potential benefits

from a technical point of view, CBDC is much better than the current form of legal currency. They can be tracked better, collect taxes more conveniently, transmit monetary policy better, have better financial inclusiveness, and rece the cost of procing physical currency

the most obvious advantage is that payment is cheaper and faster, whether it is domestic payment or cross-border payment

in addition to the design and implementation problems, a key problem of issuing CBDC is that CBDC may increase the risk of bank operation. However, this only happens when banks promise that their deposits can be converted into CBDC on demand, which is not necessarily the case, according to the Bank of England document

4. Facts on the ground

how far is it from us to see a real CBDC appear in the market? It's hard to estimate, but at present, we can sum up the current situation in one sentence: all talk but no practice

if we put aside the failed digital currencies of Ecuador, Tunisia and Venezuela, we can only do theoretical research, a small amount of experiments, and issue some feasible CBDC issuance announcements supported by the state in the future

the most famous CBDC projects in progress are: e-peso in Uruguay (the project was successfully tested in 2018), DCEP in China, "project Inthanon" in Thailand, e-krona in Sweden (still in the research stage)...

5. The revolution has not yet been successful, and comrades still need to work hard

considering the factors mentioned above, Most of the headlines about CBDC's upcoming release are groundless. All projects scheled to be released this year have been delayed

in fact, there is still a long way to go for the birth of CBDC, and to convince the public, we need more than a statement. Given the current situation, it seems that CBDC and other cryptocurrencies may not affect each other - at least for now.

8.

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

9. 1. Mainstream currency, generally this kind of digital currency has been widely recognized by the market. In the process of implementation, it is strictly based on blockchain technology, but it has been used in practice. BTC and eth, which have good market liquidity, are mainstream currencies
2. Shanzhai coin is called Shanzhai coin because it has many similarities with mainstream coin in technical mode. Shanzhai coin also has its own real project, which is based on the underlying technology of blockchain and is implemented according to the plan of its white paper. The common counterfeit coins are EOS and BTM
3. Generally speaking, there is only one white paper that looks very strong. However, in the actual development, there may not be any procts or business landing. People just want to make money. However, the current laws and regulations have no way to take it, using formal means to achieve the goal of money. Hero chain, superstar, space chain and so on Welcome to the previous articles of chain horse: it has dropped from 2.6 yuan to 0.1449 yuan, breaking 18 times in six months, and the routine of air currency can't be prevented)
4. MLM currency, in the name of blockchain, has nothing to do with blockchain. The currency he issued can't be found on the Internet, and it's completely internal control. Usually, people will build their own trading platform, and then the K-line of the coin will always rise, telling investors that our future value will exceed bitcoin.

10. Introction: Lianxiang finance is a blockchain information media platform, focusing on the blockchain instry, providing blockchain enthusiasts with professional services such as blockchain project report, investment consultant, project analysis, market quotation, project roadshow and community service, including hot news, project interview, project report and instry policy
legal representative: Zou Zedong
time of establishment: November 2, 2017
registered capital: RMB 5 million
Instrial and commercial registration number: 440300202801137
enterprise type: limited liability company
address: 1708-1, 17th floor, Tianli Central Plaza, Haide Third Road, Yuehai street, Nanshan District, Shenzhen City