What are the consequences of issuing virtual currency in China
Publish: 2021-04-27 20:32:34
1. As far as I know, the central bank has not yet issued virtual currency, because the people's Bank of China said on the 21st that it will strive to issue digital currency as soon as possible. So there are many kinds of virtual currencies on the market, and the Liwu currency is not bad. You can study it. The move could help the yuan weaken the global dominance of the dollar and limit capital outflows.
2.
China's regulatory authorities have stopped the issuance and trading of virtual currency, and China's policy does not allow the issuance of any virtual currency
3. There must be risks. Theoretically speaking, if the existence of network currency affects the demand for the central bank's liabilities, and then interferes with the central bank's open market operation, it will have an impact on a country's monetary policy and price stability. However, from a practical point of view, the premise of network currency affecting price stability includes the following three aspects:
(1) from the analysis of the impact on the amount of money, although it is difficult to analyze the extent to which the network currency scheme creates money in the case of lack of information
however, most of the network currency systems operate in the prepaid mode, that is, issuing network currency when the real currency is exchanged in and withdrawing the currency when the real currency is exchanged out, which has limited impact. In the famous network currency scheme, the money supply is stable and the supply is small, but we still need to be vigilant whether it can ensure that the money supply will maintain a stable level in the long run, and the impact of the change of exchange rate between network currency and real currency.
(1) from the analysis of the impact on the amount of money, although it is difficult to analyze the extent to which the network currency scheme creates money in the case of lack of information
however, most of the network currency systems operate in the prepaid mode, that is, issuing network currency when the real currency is exchanged in and withdrawing the currency when the real currency is exchanged out, which has limited impact. In the famous network currency scheme, the money supply is stable and the supply is small, but we still need to be vigilant whether it can ensure that the money supply will maintain a stable level in the long run, and the impact of the change of exchange rate between network currency and real currency.
4. If there is no way to transfer virtual currency into legal currency, no matter how it is issued, there is no real harm
however, once it is legally linked with fiat money, it means that fiat money has the obligation to convert virtual money into fiat money. This is very dangerous
because there is no limit to the issuance of virtual currency, once there is a legal link, it is equivalent to the unlimited issuance of legal currency
although QQ coin seems to have the function of currency and can buy a lot of things on QQ, in the final analysis, it is all virtual things, and its essence is commodity.
however, once it is legally linked with fiat money, it means that fiat money has the obligation to convert virtual money into fiat money. This is very dangerous
because there is no limit to the issuance of virtual currency, once there is a legal link, it is equivalent to the unlimited issuance of legal currency
although QQ coin seems to have the function of currency and can buy a lot of things on QQ, in the final analysis, it is all virtual things, and its essence is commodity.
5. RMB devaluation, price rise. For example, if you buy a pen, it will cost two yuan, but after the increase of RMB circulation, it may become a price of five yuan or more. The object will not change, but the price will change. Compared with the money in your pocket, you can't buy a pen with one yuan.
6. Make an extreme assumption
for example, if you go to mining, find a pile of diamonds with huge value, which are worth 1 trillion yuan, and then sell them to the society in exchange for 1 trillion yuan of cash, then the national economic system will lose 1 trillion yuan of money
if the central bank does not issue new money or increase the supply of broad money through other means, In order to stabilize prices, the central bank will use monetary policy to increase money supply
which means that issuing more money is e to the continuous growth of social wealth. If new money supply is not increased, prices will continue to fall, It is not concive to economic development
the new money issued by the central bank will flow into the hands of residents through the loans of the banking system
for example, if you go to mining, find a pile of diamonds with huge value, which are worth 1 trillion yuan, and then sell them to the society in exchange for 1 trillion yuan of cash, then the national economic system will lose 1 trillion yuan of money
if the central bank does not issue new money or increase the supply of broad money through other means, In order to stabilize prices, the central bank will use monetary policy to increase money supply
which means that issuing more money is e to the continuous growth of social wealth. If new money supply is not increased, prices will continue to fall, It is not concive to economic development
the new money issued by the central bank will flow into the hands of residents through the loans of the banking system
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