The people’s Bank of Chinese to accelerate the digital currency, banknotes will decide on what path to follow?

The people’s Bank of Chinese to accelerate the digital currency, banknotes will decide on what path to follow?


Recently, the central bank units directly under the central bank’s official website released the 2017 annual staff recruitment information table shows, the people’s Bank of Chinese printed scientific research institute this year plans to recruit 6 with master or PhD degree in the professional development of digital currency. This means that China’s legal digital currency is getting closer and closer to us.


The near future, we will be able to use the central bank issued legal digital currency. Money will also exit the stage of history. So, we can guess, from the beginning of the sixth set of RMB, will appear in digital currency in front of the public? The fifth set of RMB will not be the last set of notes? If you really want to catch a digital currency issue, then the market speculation, 500 yuan big may not have the chance to appear? Of course, these speculations, the specific issue of time, still need to wait with you.


This year 1 month 20 day, the people’s Bank of Chinese held digital currency seminar, proposed for the early launch of digital currency issued by the central bank.


Earlier, the central bank governor Zhou Xiaochuan also said in an interview, the central bank in early research on digital currency. From the trend of historical development, the currency is always accompanied by economic activities of technological progress, development and evolution, from the early physical currency, commodity money to later credit money, is to adapt to natural selection of human social development business. As a generation of currency notes, low technical content, from the point of view of safety and cost, is the new technology and new products to replace is represent the general trend. Especially with the development of the Internet, global payments have undergone tremendous changes, the establishment of circulation system of digital currency, finance for infrastructure construction, promote economic quality and efficiency upgrades are necessary.


In fact, according to the central bank for the digital currency group leader, deputy director of the division of science and technology Yao Qian introduced from 2014 onwards, the people’s Bank will set up a special team to issue legal digital currency, a prospective study of digital currency related issues, the central bank issued the legal feasibility of digital currency.


Recently, Yao also said before, the central bank issued a legal prototype scheme of digital currency has completed two rounds of revision, application pilot is expected in the future in the bill market relatively closed, but no clear timetable for launch.


In addition, there is news that the central bank digital currency Institute before the end of the year is expected to be set up, printed based Institute of science and technology in the establishment of the central bank.


Digital currency issued by the central bank is currently the main alternative to cash, reduce the traditional currency issue, circulation cost, convenience and improve the transparency of economic transactions.


Theoretically, the payment system of the main part of demand deposits in broad money, which mainly belongs to the category of digital currency cash. From a logical point of view, the central bank issued digital currency will have a certain impact on the existing pattern of currency. For example, the velocity of money is likely to accelerate, the money multiplier may increase etc..


In short, the issuance of digital currency is significant. At least, the armored car without the how. And to a certain extent, can avoid the counterfeit money, money fraud cost now compared to the digital currency, or simply a little. If a high enough level through digital certificates to encrypt the digital currency, then the counterfeit money will be reduced?


How to block chain technology will be applied to digital currency?


The coins, coins and other virtual currency Ethernet use block chain technology, so the market speculation China legal digital currency will also use this technology. Yao said, the central bank will further increase the intensity of new and innovative technologies including block chain technology, and use degree, to better enhance the level of financial services, fully foresee and timely response, effectively solve the possible risks in the application of the technology. This illustrates the value and significance of this technology in the digital currency.


In fact, we used on the Internet or other game Q coins and other virtual currency, strictly speaking, virtual goods, or intermediate goods, not money, do not have the ability to buy legal tender. While the market more to talk about bitcoin is different, it is a virtual currency using a block chain technology to the center, to provide convenience for money laundering. Therefore, the application block chain technology should not be used to copy. If the central bank issued a digital currency, should be a center of the currency issued by the central bank, the national currency, encrypted credit support, in line with regulatory requirements.


A few days ago, India’s prime minister Modi announced the issuance of new currency, aimed at combating tax evasion and money laundering. But in fact, the central bank issued a digital currency, if the technology is excellent, the mechanism is mature, I believe there will be better. Because the digital currency, in addition to anti fraud, with the help of digital currency block chain technology, so that funds can be tracked and data transparency etc.. These features can also be used for macro statistics and monitoring, has a positive meaning for the large data risk control.


What time release and the popularity of digital currency?


The central bank insiders, the Central Bank of digital currency is more exploratory stage in theory and practice, “in international research should not lag behind; but once clear can be implemented, not a lack of knowledge, technology and talent reserve reserve reserve.”


Here for the digital currency issue early, that this thing is imperative. But to the issue of digital currency, many factors should be taken into consideration.


Before Yao had stressed that the digital currency issued by the central bank is currently the main alternative to cash, reduce the traditional currency issue, circulation cost, convenience and improve the transparency of economic transactions. He believes that the central bank will control to the existing monetary policy and the creation of money supply mechanism, the transmission channel of monetary policy makes the full consideration in the design of digital currency. At the same time, digital money on money supply and structure, flow rate, monetary multiplier and spatiotemporal distribution estimates will be more accurate, effectively improve the accuracy of monetary policy operation.


At present, research on the legal system of prototype digital currency is underway. As for when to launch the legal Chinese digital currency, no clear timetable. “Chinese vast population, monetary conditions are complex, pay social demand diversification. At the same time, digital currency circulation needs certain conditions, its development is a continuous exploration and improvement process.” Yao said.


He said that in the future a longer 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.


How the digital currency will be saved?


At present, people have a way of storing funds, such as cash, such as bank account, such as the existence of the third party payment and other network related accounts and so on. The digital currency storage mode of the future will be where?


Money is nothing more than a little cash storage in such a form, the future, digital account funds naturally exist in bank accounts or legal (such as Alipay, WeChat wallet, etc.). In fact, we see the bank account or Alipay or WeChat or front display just some numbers. So now, let the people to accept the digital currency, that is not very difficult.


The future, issue and application benefit from the digital currency, demand for mobile payments and the scene will be more abundant, Internet plus society’s degree will be higher! Of course, bank outlets and ATM machines will be transformed, before these transformation will issue a digital currency in the central bank, led by the central bank to conduct technical evaluation and guidance. Then, the bank will be presented in the form of wisdom is not the same.


At present, the outside world for the “central bank legal digital currency is full of expectations. Yao Qian thinks, should objectively look at this new thing. The central bank introduced a digital currency, only in the technology to meet the market demand more vitality.

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