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Virtual currency and interest rate

Publish: 2021-04-20 15:56:52
1.

virtual currency is the currency used for electronic circulation. Now the scope of virtual currency is very large, including q-coin, bitcoin and so on. With the development of digital currency, virtual currency is becoming more and more abundant, which may become the mainstream in the future. For example, BTC, EOS, bcbot and so on are not only virtual currencies, but also algorithms, landing projects and technologies

virtual currency is mainly issued by online game service providers to purchase game props, such as equipment, clothing, etc. But at present, the use of virtual currency has gone far beyond this category. Virtual currency can be used to buy game cards, physical objects and download services of some movies and software

extended data:

real risk

as the proct of e-commerce, virtual currency has begun to play an increasingly important role, and it is more and more connected with the real world. However, with the growth of virtual currency, the relevant laws and regulations are lagging behind, which has laid many hidden dangers

fraud

the private transaction of online virtual currency has realized the two-way circulation between virtual currency and RMB to a certain extent. The activity of these traders is to buy all kinds of virtual currencies and procts at a low price, and then sell them at a high price to earn profits. With the increase of such transactions, there are even virtual mints. In addition to the virtual currency provided by the main company, there are also some people who specialize in "virtual coin making" to obtain virtual currency by playing games and then resell it to other players

Taking Wenzhou as an example, there are about seven or eight such "virtual mints" with four or five hundred practitioners. This not only creates a bubble for the price of the virtual currency itself, but also causes trouble for the normal sale of the issuing company. It also provides a platform for selling and collecting money and money laundering for various cyber crimes. p>

impact system

in modern financial system, the issuers of money are generally central banks, which are responsible for the management and supervision of money operation. As the equivalent exchange goods used to replace the real currency circulation on the Internet, the virtual currency on the Internet is essentially the same as the real currency. The difference is that the issuers are no longer central banks, but Internet companies

if the development of virtual currency makes it form a unified market, each company can exchange with each other, or virtual currency is integrated and unified, and all of them are based on the same standard and price, then in a sense, virtual currency is currency, which is likely to form a threat impact on the traditional financial system or economic operation

reference: network virtual currency

2. Virtual currency refers to non real currency. Well known virtual currency, such as network company's network currency, Tencent company's Q currency, Q point, Shanda company's voucher; The popular digital currencies in 2013 include bitcoin, Leyte coin, Fuyuan coin, doggy coin and so on
network virtual currency can be roughly divided into

the first category is familiar game currency. In the era of stand-alone games, the protagonist accumulates money by knocking down the enemy, entering the gambling house to win money, and using these to buy Herbs and equipment, but it can only be used in his own game console. At that time, there was no "market" between players. Since the establishment of Internet portal and community, the realization of game networking, virtual currency has a "financial market", players can trade game currency
the second type is the special currency issued by the portal website or instant messaging service provider, which is used to purchase the services in the website. The most widely used is Tencent's q-coin, which can be used to purchase membership, QQ show and other value-added services
the third kind of virtual currency on the Internet, such as bitcoin (BTC), Fuyuan coin (FTC), Wright currency (LTC), etc. bitcoin is an electronic currency proced by open-source P2P software. Some people also translate bitcoin as "bitcoin", which is a kind of network virtual currency. It is mainly used for Internet financial investment, and can also be directly used in daily life as a new currency.
3. There is no interest rate problem in virtual currency. Virtual currency is not a currency in China, but a special Internet commodity in China. Well known virtual currencies include bitcoin, Ruitai coin, Laite coin, doggy coin and so on
interest rate is the ratio of interest amount to total loan capital in a certain period of time. Interest rate is the interest level of unit currency in unit time, indicating the amount of interest. Economists have been trying to find a theory that can fully explain the structure and change of interest rate. Interest rates are usually controlled by the country's central bank and, in the United States, by the Federal Reserve. So far, all countries regard interest rate as one of the important tools of macroeconomic control.
4.

Mobile payment means that mobile clients use electronic procts such as mobile phones to make e-money payment. Mobile payment creates a new payment method and makes e-money popular. Because of the advantages of convenient and fast payment, eliminating counterfeit money, no change and so on, it is loved by many people< The Ministry of Commerce issued the "overall plan for the pilot project of deepening the innovation and development of service trade in China", and officially announced that the number of digital currency has expanded from the original 4 pilot cities to 28 , which means that digital currency is coming towards us. The same virtual currency and bitcoin, so these virtual currency can replace the status of paper money

Therefore, it is essentially no different from the paper currency RMB, and will not be wildly hyped like bitcoin. In a short period of time, virtual currency can not completely replace traditional currency. There are mainly two constraints: the first is the user's will, not everyone is used to this payment method; the second is the satisfaction of technical conditions, because the speed of transaction payment is mainly limited by the technical realization, and the goal of digital currency is only to replace part of the cash in circulation. So for a long time, it should be used in parallel with banknotes

5. First, the interest rate policy affects the exchange rate by influencing the current account. When interest rates rise, credit will be tight, loans will be reced, investment and consumption will be reced, and prices will fall. To a certain extent, imports will be restrained, exports will be promoted, foreign exchange demand will be reced, foreign exchange supply will be increased, and foreign exchange rate will fall, while local currency exchange rate will rise. On the contrary, when the interest rate goes down, the credit will expand and the money supply (M2) will increase, which will stimulate investment and consumption, and promote the price rise, which is not concive to exports and imports. In this case, it will increase the demand for foreign exchange, promote the rise of foreign exchange rate and the decline of local currency exchange rate. The decline of real interest rate leads to the rise of foreign exchange rate and the decline of RMB exchange rate
secondly, it indirectly affects the exchange rate by influencing the international capital flow. When a country's interest rate rises, it will attract international capital inflow, thus increasing the demand for local currency and the supply of foreign exchange, making the local currency exchange rate rise and the foreign exchange rate fall. Moreover, the increase of a country's interest rate promotes the increase of international capital inflow and the decrease of capital outflow, which reces the balance of payments deficit and supports the rise of local currency exchange rate. On the contrary, when the interest rate rises, it may lead to the outflow of international capital, increase the demand for foreign exchange, rece the balance of payments surplus, and promote the rise of foreign exchange rate and the decline of local currency exchange rate
thirdly, the impact of exchange rate changes on interest rates is also indirect, that is, through affecting the domestic price level and short-term capital flow, it has an indirect impact on interest rates
money supply is directly proportional to interest rate, and money demand is inversely proportional to interest rate.
6. In the foreign exchange market, the change of a country's currency interest rate will cause the change of its exchange rate. Generally speaking, if the interest rate of a country's currency rises, the exchange rate of that currency is easy to rise; When a country's currency reces interest rate, it is easy to devalue. Take the British pound as an example. This year, the basic interest rate of the British pound has dropped below 5%, and its exchange rate against the US dollar has fallen below 1.50
however, there are some particularities in this relationship. In the foreign exchange market, there are often such situations. For example, when the interest rate increase is officially announced, the country's currency does not rise but falls. When the interest rate is officially announced, the country's currency does not fall but rises. This phenomenon shows that the market has digested the advantages of interest rate increase or the disadvantages of interest rate cut in advance. For example, in June 2000, the Central Bank of Europe raised interest rates on the euro, but after the news was released, the exchange rate of the euro soon fell from 1 euro to 0.97 US dollars. This is mainly because the market has pushed the euro from 1 euro to 0.90 US dollars to 0.97 US dollars in advance
therefore, when trading in foreign exchange treasure, investors should grasp the following operation skills on the relationship between currency interest rate and exchange rate: generally, when a country's currency is in the trend of interest rate rise, they buy the country's currency; once the news is official, they mainly sell it; On the contrary, when a country's currency has the trend of interest rate rection, it will sell the currency, and once the news is official, it will buy back the currency
References: http://www.ewen.cc/music/bkview.asp?bkid=6198&cid=10724
7.

1. Different concepts


exchange rate is also known as foreign exchange rate. Foreign exchange rate or foreign exchange market refers to the exchange rate between two currencies, and can also be regarded as the value of one country's currency to another. Specifically, it refers to the ratio or price of one country's currency to another country's currency, or the price of another country's currency expressed in one country's currency

interest rate refers to the ratio between the amount of interest and the amount of loan funds, that is, the principal, in a certain period of time. Interest rate is the main factor that determines the capital cost of enterprises, and it is also the decisive factor for enterprises to raise funds and invest

The interest rate is not only the main factor that determines the cost of capital, but also the decisive factor of financing and investment. Therefore, we must pay attention to the current situation of interest rate and its change trend in the study of financial environment

Exchange rate fluctuation has a direct regulatory effect on a country's import and export trade. Under certain conditions, the devaluation of domestic currency, that is, the decline of exchange rate, will promote exports and restrict imports; On the contrary, the appreciation of domestic currency, that is, the rise of exchange rate, will restrict exports and increase imports

In the socialist market economy, interest is still a part of the average profit, so the interest rate is also determined by the average profit rate, that is, the level of interest rate first depends on the level of social average profit rate. According to the current situation of China's economic development and reform practice, this restriction can be summarized as follows: the overall level of interest rate should adapt to the affordability of most enterprises

The impact of exchange rate on import and export: the rise of exchange rate (direct pricing method) can promote export and inhibit import The foreign exchange rate rose, while the local exchange rate fell)

8. Exchange rate refers to the exchange relationship between two different currencies, also known as exchange rate. If foreign exchange is also regarded as a commodity, then the exchange rate is the price of one currency to buy another currency in the foreign exchange market. For example, 1 U.S. dollar = 110 yen means that the exchange rate between U.S. dollar and Japanese yen is 110, 1 U.S. dollar can be exchanged for 110 yen, or 110 yen can be exchanged for 1 U.S. dollar. In international economic exchanges, currency exchange is often carried out. For example, if Japanese Importers want to import US $100000 equipment, they must first convert 11 million yen into US $100000 and then pay the price. At present, in the international currency market, there are many foreign exchange transactions separated from this kind of economic transaction. For example, someone buys the currency and sells it at a high price after the exchange rate rises, thus making a lot of profits. Therefore, foreign exchange has become a tool for investment profit
interest is a certain price paid by the borrower to the borrower in order to obtain the right to use the monetary fund, or a certain reward obtained by the money owner from the borrower for temporarily transferring the right to use the Monetary Fund. Interest, as the price of borrowing money or the reward of lending money, is actually the "price" of borrowing funds. The level of interest is expressed by the interest rate. Interest rate refers to the ratio between the amount of interest and the amount of money borrowed or saved in a certain period of time. The formula is:
interest rate = interest amount / principal
interest rate can be divided into annual interest rate, monthly interest rate and daily interest rate.
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