The central bank’s monetary figures

The central bank’s monetary figures

In order to obtain the legal status of the digital currency demand seems to have a breakthrough. Recently, the people’s Bank of China official website released the “scientific research units directly under the printed 2017 annual recruitment plans”, intends to recruit 6 with master or PhD degree in the professional development of digital currency. The present study has got the digital currency the central bank approved the central office of the committee, before the end of the year is expected to formally established. An exposure of the news, immediately caused concern to the industry. Do digital currency and traditional will enter the beautiful harmony of the stage? Therefore, we need to sort out the digital currency the central bank first eyes is what? It is generally accepted with virtual currencies such as bitcoin market, then what is the difference?


The change trend of the price of bitcoin


(1) the central bank in the eyes of the digital currency belongs to legal tender, it is different from WeChat, Alipay and other payment means of payment, is also different from the private digital currency bitcoin. Deputy director of the people’s Bank of Chinese Department of science and technology and the people’s Bank of Chinese digital Monetary Institute preparatory group leader Yao Qian believes that the implementation of the electronic payment account information only existing legal currency, digital currency as legal tender must be made by the central bank. This means that the network generated by the specific algorithm to bitcoin, into the central bank’s “eyes”, the central bank does not meet the definition of eyes of digital currency, is at best digital assets”.


(2) the central bank in the eyes of digital currency operation must be run on the “two modes of central bank and commercial bank”. What is the “central bank and commercial bank” two yuan? Fan Yifei, deputy governor of the people’s Bank issued the author explained that, the central bank is responsible for monitoring and verification of digital currency, commercial banks from the central bank to apply for a digital currency, directly facing the society, responsible for providing digital currency circulation service system construction and application of ecological service. In other words, even if the implementation of digital currency system, the central bank is still unshakable position of authority, and this and other virtual currency bitcoin to the center, to ensure that the currency is not contrary to the manipulation of ideology.


(3) the central bank needs to issue eyes of digital currency and economic development are closely linked. The central bank seems digital currency is a weapon implement economic target. After the implementation of digital currency, monetary data is more concentrated, which contributes to the enhancement of the central bank in the financial system control, also contribute to the implementation of monetary policy is scientific and accurate. While bitcoin launched the original intention, is through to the characteristics and algorithm of center P2P, ensure not by making bitcoin to a large number of currency manipulation, so bitcoin limit is limited to 21 million.


(4) security mechanism of central bank eyes digital currency on the market is different from the popular bitcoin. The central bank governor Zhou Xiaochuan has said that the central bank will control the digital currency, the use of technical means, a series of mechanism design and the laws and regulations, to ensure the safety of the operation system of digital currency. Zhou Xiaochuan said, the people’s Bank in-depth study of other related technologies of digital money involved, such as block chain technology, mobile payment, trustworthy and controllable cloud computing, cryptographic algorithm, security chip etc.. At present, bitcoin mainly depends on the block chain technology, by this technology, people will be able to their transaction information uploaded to an open the books, and the books will be shared with other users in real time, a series of other time signatures and encryption settings let these data can not be tampered with.


Thus, the central bank in the eyes of the digital currency bitcoin supporters imagine the existence of a wide gap. The crack in the surface due to technical differences, actually monetary concept ingrained estrangement. In the digital currency supporters, the currency should not be controlled by the central bank, the total fixed currency means fair, is a sign of social progress; and in the eyes of the central bank, to control the smooth running of the economy cannot do without the monetary floodgates. In the case of failure of the market mechanism, the key role played in the central bank’s monetary system is still necessary. The concept of conflict between the central bank and bitcoin supporters means that the fight digital currency control, destined to quell.

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