Foreign media: the central bank China digital currency is still a long way to go

Foreign media: the central bank China digital currency is still a long way to go
? Foreign media quoted the Xinhua News Agency reported that the experience and important achievements of the people’s Bank of Chinese digital currency research team will actively absorb domestic and foreign research of digital currency, for the early launch of digital currency issued by the central bank. A digital currency seminar held in Beijing, the people’s Bank of China released the news.

Said, in 2014, the people’s Bank of Chinese set up a special team, on the issue of digital currency possibilities, especially the study of domestic and overseas experience and lessons. Two years later, the team has made progress in the “legal issues of technology, and the effects on financial system etc..”

Reported that Charlie Kast wrote for the Asian network technology, Chinese to issue digital currency is still a long way to go. In addition, he suspected that this idea will be put into practice in Chinese. “China consumers have always on their savings are very conservative, will be a lot of money into new digital currency abstraction may make it difficult for them to accept, even if the central bank is also very difficult to China.”

So why China issued their own digital currency? 中国人民银行列举了很多实际好处:数字货币发行成本低(因为它减少纸币需求),使交易和金融业务更便利,而且有助于减少洗钱和避税行为。

However, the logic behind this initiative may be more simple. For a long time China attitude toward foreign network innovation is “if not better than them, they will imitate.” Chinese can use their own things to avoid it do not love the Western technology some aspects, of course, with the characteristics of China. Create a formal China digital currency can make new Beijing final farewell to its complex relationship with the digital currency bitcoin currently dominated the.

Reported that in late 2013, bitcoin is in its heyday in Chinese, is conducive to the bitcoin appreciation of more than $1200. In October, bitcoin suddenly hot, Chinese Internet giant Baidu Inc agreed to accept bitcoin auxiliary service as its means of payment. Initially, the government seems to Chinese bitcoin holders of confidence, but there are always some lingering worries, because Beijing to supervise and track bitcoin transactions without much control.

In December 2013, Beijing began to control the bitcoin, Chinese banks and financial institutions will prohibit bitcoin as a currency. The central bank will likely affect the financial stability concerns about money laundering and as a reason to take this measure. The people’s Bank of China also requires third party payment processing company to stop accepting bitcoin, China told the main bitcoin exchange ceased to accept Renminbi deposits.

Reported that, now, China announced the launch of their digital currency to replace bitcoin. Custer believes that the final release of the China with digital currency bitcoin would not be the same, it will be special for China government, in order to track the transaction, and will be under the protection of the central bank China. In fact, the people’s Bank of China that digital currency will enhance its ability to control Chinese currency.

Reported that Beijing hopes to issue their own official authorization of digital currency will help reduce the number of potential drawbacks. The International Monetary Fund President Lagarde said in Davos, the world economic forum, a special group meeting yesterday, digital currency in some aspects may be beneficial, but may also be used to fund criminal or terrorist organization.

On the 3

Why is the electronic payment of digital currency?

After the central bank raised the digital currency as soon as possible, some critics believe that the electronic settlement now has been very convenient, why spend time doing digital currency.

In this regard, Huarong securities Wealth Management Center Deputy General Manager Xiao Bo said, before the digital currency has not brought big changes, the electronic payment and the so-called digital currency is still relatively close, the transaction money is through bank accounts in the central bank, by controlling currency scale.

However, Huang further pointed out that the implementation of the central bank’s monetary figures are likely to change the currency issue, the current electronic payment only notes to the Internet transmission, and the future of digital money may establish books in the block chain, will not be tampered with, and electronic payment is only one-way bookkeeping.


Block chain (Blockchain) is refers through collective center and to trust the way a reliable database maintenance plan, block chain technology is to support bitcoin technology, has also been mentioned in this seminar.

On the 4

Why can reduce tax evasion behavior?

At the seminar, the research think that the issue of digital currency can reduce money laundering, tax evasion and other criminal acts.

In Xiao Bo view, the current decentralized financial institutions have a lot of internal books, and the future with the application of block chain technology, will establish a unified national accounts, each sum of the money can be traced, every transaction can be traced, tax evasion and money laundering in the scope of regulation, even possible automatic tax deduction in the credit card machine.

The credit card consumption is becoming a habit, Xiao Bo said, the future of digital currency promotion, accumulated from the social credit perspective, businesses and consumers will tend to use digital currency, credit card spending, because the electronic transaction data traces can be accumulated in the enterprise and individual credit, it will be for banks and other financial services on the basis of.

On the 5

The future will have no money?

Although bitcoin as a non official currency prospects, but the central bank to promote a breakthrough in digital currency is regarded as the official currency, circulation mechanism. So, the future will exit historical notes?

In the view of Huang Zhen, the future may not have money, the financial industry will be digital, which is a big trend.

In order to realize the digital currency is not easy. Insiders disclosed that digital currency to become a carrier of value exchange to ensure its safety and convenience, there are many technical problems to be solved. Digital currency substitution notes, in circulation, there is a very long process.

However, in the short term, money will still exist, Xiao Bo believes that the scattered notes would still have, even in the electronic transaction is highly developed in the United States, the taxi consumption still use cash to complete micro payment.

Author: Liu Suhong

This article source: Reference News Network Editor: Huang Huan

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