RMB digital will be the inevitable trend, should eliminate the misunderstanding of three
Recently, the central bank issued 2017 annual personnel units directly under the recruitment information display, the central bank printed scientific research institute this year plans to recruit 6 with master or PhD degree in professional digital currency research, it shows that Chinese digital currency research work will be started.
The earliest use of notes can be traced back to the Northern Song Dynasty, the Northern Song Dynasty in the year 960 the first year in Sichuan Jianlong printing “Jiaozi”, less than 1100 years; after Northern Song Dynasty Dynasties was mainly in gold, silver, copper and other precious metals as a medium of exchange, to the Qingming, Beiyang government and the Republic of China during the period, notes the number gradually increased, but still can not completely replace paper money. On the one hand, because the banknote printing technology and the circulation of damage is not convenient, so a wide range of difficulties in issuing notes; on the other hand, the public money habits long-term preference for precious metals, paper money concerns exist cannot be eliminated.
Obviously, from the media to the precious metal as currency notes as currency to replace costly financial media, and then to the future of digital currency, is the inevitable product of economic development to a certain stage; and with the network communication technology is increasingly developed, social trading activities have become increasingly frequent and active, and popular shopping habits change and on currency security, has been a growing tendency to use electronic banking and electronic payment to carry money, the central bank to provide more money than fast, low cost digital media currency tool, which conform to the times of economic development will be. Can foreknow, after the circulation of paper money or with this trend of reduction, tender notes are still represent the general trend.
At the same time, digital currency can play a deal with media advantage, exert important and far-reaching influence on the future social and economic activities will be:
(1) digital currency can reduce the traditional currency issue, circulation cost, convenience and improve the transparency of economic transactions;
(2) can be reduced to money laundering, tax evasion and other criminal acts, enhance control of central bank money supply and monetary circulation, better support for economic and social development, fully realize the power of inclusive finance;
(3) the future of digital currency issuance and circulation system also helps our country to build the new financial infrastructure, to further improve China’s payment system, improve payment efficiency, promote economic quality and efficiency upgrades;
(4) digital currency also contributes to the economic field of our country’s anti-corruption work, the corruption, bribery and other acts restricted more.
Of course, in addition to producing a series of digital currency positive economic impact, will bring other effect: for example, bank employees will lead to further reduction will allow existing plant closures and mint employees decreased, and is not high on the level of the existing cultural lack of digital currency operation ability of people to bring about some inconvenience in the economic life.
However, in order to eliminate future digital currency issuance and circulation disorder, should eliminate the misunderstanding of three:
1, eliminate the digital currency and the use of the renminbi will lead to the existing shrink worries.
Digital currency mainly refers to the form of currency, the currency issue scale is still controlled by the central bank, and for issuing notes or digital currency just changes will not lead to currency has shrunk, so people need not worry about.
2, eliminate the digital currency and electronic payment such as Alipay, WeChat and other digital currencies such as bitcoin, Wright currency caused confusion concerns.
The central bank is a digital currency issued by the central bank, the national currency, encrypted credit support. And other electronic payment and digital currency is essentially different; “bitcoin” is just a virtual currency, it can only be purchased with real money, and can not be converted into real money; and the number of money without a centralized issuer, anyone can participate in manufacturing and in the global circulation. So, don’t worry about the whole society.
3, eliminate will bring people trading and shopping is not convenient to worry.
Because the digital currency is a long process, the short term will not abolish the notes, so in a long period of time, number and currency in circulation will coexist. For ordinary people, next to the bank to withdraw money, can choose cash in cash, can also choose to exchange digital currency, will not affect the daily life of ordinary people.
Author: Mo Kaiwei (Professor, well-known financial commentator Chinese Local Financial Research Institute)