With the digital currency bitcoin bank to promote what is the difference?
Pay in the digital age, digital currency real distance closer to us. Recently, the central bank has Chinese to release a strong signal to promote digital currency: on the one hand, the Central Bank of digital currency is expected to be officially listed soon; on the other hand, the central bank to promote digital ticket trading platform based on block chain has also recently successfully tested. Insiders said, compared with the traditional currency, digital currency have obvious advantages, the development of digital currency will be a technical and policy interaction and balance process, but because of the lack of precedent, therefore may face some challenges. Industry experts also stressed that the digital currency bitcoin and other virtual currencies are fundamentally different.
What is the “digital currency”? Oliver Wyman group company Celent securities and investment senior analyst JohnDwyer said, the so-called “digital currency” is a new carrier of current legal tender. In the era of digital currency, the government can inject liquidity directly to the personal account, without the aid of commercial banks. Digital currency can almost immediate settlement, so as to optimize the liquidity, reduce the complexity of process of settlement of secure capital and collateral, and can greatly reduce counterparty risk. Because the digital currency by fully digital form, regulators can more clearly understand and track the specific funds direction in the economy, which is not available in the traditional currency.
Citibank (China) Ltd. vice president Pei Yigen also said that the application of digital currency in payment and settlement (especially cross-border payment) in addition to reduce intermediate links, also can be built to realize automatic settlement transaction transaction rules, which are conducive to improve efficiency, reduce cost. For the government, digital currency to reduce counterfeit money, reduce the issuing cost and prevent money laundering and corruption, providing better information and financial management.
At present, the Bank of Canada, the Bundesbank and the monetary authority of Singapore is also testing the digital currency. DDT Asia Pacific Investment management industry leading partner, Qin Yi said, from a global perspective, the implementation of digital currency is a trend, from a cost benefit perspective, has the advantage of digital currency. “The central bank issued currency should first consider the application of digital technology and to achieve the effect; secondly, to consider the different technology options, the impact on the overall regulation, market, distribution channels and circulation channels. This is a technical and policy of mutual interaction and balance process.” She said.
“Now many people regard the block chain and digital currency equated, this is actually the two concepts. As an analogy, digital currency like transportation, and block chain infrastructure, support transport operation. If the support of the currency road is muddy road, it can only run the carriage. But if the upgrade to asphalt, you can run the car; if you upgrade to high-speed rail, high-speed trains will run. Technology is the track, and the track built what determines the currency circulation circulation efficiency.” Qin Yi said.
Said Li Wei, former director of the central bank’s Department of science and technology, digital currency involves distributed architecture, cryptography, security chip, mobile payment, trusted computing and other technologies, and block chain technology is only one of the enabling technologies for digital currency of choice, whether the future application in digital currency, depending on the block chain technology in network security can be solved business performance, short transaction consistency etc., which depends on the combination of the parties in the technology system, application framework and other aspects of the unremitting exploration and improvement. Qin Yi said, from the current situation, one of the alternatives is a digital currency block chain technology, that is to say, digital currency not necessarily completely based on the structure of block chain, which is the key point is that, as a new technology, have not experienced the large scale chain block commercial trial and error test. She said, if the block chain as the basic architecture of digital currency in the future, need a large number of analysis and the need to eliminate hidden uncertainties.
It is worth noting that in recent years, digital currency and abnormal hot bitcoin are fundamentally different. Qin Yi stressed that the digital currency is not represented with bitcoin virtual currency, it is legal tender issued by the state, so it is defined as the digital currency issued by the state is more clear. In the past six months, many central bankers statement on different occasions, the virtual currency can not replace or partially replace the legal tender.
Pei Yigen also said that the current bitcoin virtual currency such lack of monetary property, so it is not real money. The virtual currency network services mainly for the interests of network operators and holders of money, they are generally designed to have a mechanism to promote the value of long-term rise, and people generally to the appreciation of the currency of payment and circulation of other currencies at the same time, the virtual currency is used instead of “currency” value exchange they also lost the medium of exchange and a unit of account function.
In addition, bitcoin anonymity and globalization fast trading easily by some criminals, become one of fraud, money laundering, illegal trading channel. The National People’s Congress, the people’s Bank of China director of business management department Zhou Xuedong believes that bitcoin trading platform there are significant risks, one is the safety of customer funds risk; two is the risk of money laundering; the three is the risk brought by leveraged transactions. He suggested that, in the short term to clear bitcoin trading platform regulatory bottom line, the establishment of a negative list, do risk prevention and control work; in the long term, with reference to international experience, research and establish long-term supervision mechanism, to maintain financial stability.