The influence of virtual currency on real monetary system
the impact of virtual currency on e-commerce is as follows:
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the impact of virtual currency on the financial system
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the network security of virtual currency
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inflation in the virtual world
The impact of e-money:
1. As e-money appears on the Internet in a virtual form, users can change the conversion between cash and savings, current and fixed at any time through their own instructions. Therefore, e to the decrease of e-money, the advantages of money supply with clear connotation and extension will be lost
2. The impact of e-money on base money. Base money is a special monetary level in which the central bank implements the legal provision system to control deposit expansion and money creation. With the continuous improvement and maturity of e-money, when e-cash can become a new form of cash currency and join the ranks of base currency, it may make the base currency virtual. The development of e-money will rece the cash in circulation. At the same time, if e-money replaces bank deposits, because the laws of various countries have not yet stipulated that e-money should pay reserves, it will rece the deposit reserves of commercial banks and the base money
3. Make the main body of money supply bigger. Under the condition that electronic money does not need reserve and market access, many financial organizations and even enterprises have joined in the issuance of electronic money. From the functions and characteristics of e-money, the occurrence and subject of e-money, we can see that after entering the era of e-money, the issuing right of money will tend to be decentralizedextended data:
the impact of e-money on money demand is mainly reflected in the fact that e-money partially replaces cash in circulation, accelerates the speed of money circulation, and thus reces the demand for money. In addition, e-money has the function of credit creation, which also makes the demand for money in an unstable state, leading to the fluctuation of interest rate, which in turn leads to the instability of money demand. As the fluctuation of money demand increases, interest rate will be reced as the transmission mechanism of monetary policy