PBoC: Speeding up the pace of China's legal digital currency

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08-03

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[BitKan, Singapore] On August 2, the People's Bank of China held a conference for 2019Q2. The meeting showed that the pace of research and development of China's legal digital currency (DC/EP, digital currency/electronic payment) will be accelerated. China will track the development trend of domestic and foreign virtual currencies, and continuing to regulate Internet financial risk.


People's Bank of China


Five design ideas


In the article "Interactions between Information Technology and Financial Policy," Zhou Xiaochuan, the former governor of the People's Bank of China, revealed that the design ideas of DC/EP promoted by the People's Bank of China include:


(1) In the design of DC/EP, we should not pre-select a certain technology, but rely on distributed R&D, market competition, and respect for market choices. These include improvements in account-based electronic payment channels, mobile payments such as code-based payments, blockchain, distributed ledger technology (DLT) encrypted digital currency systems;


(2) Some different systems of technology may develop in parallel, which can encourage multiple collaborative development and rapid switching, but mainly to exert market enthusiasm. It is not easy to know who is best beforehand. The central bank can also have its own system, but don't worry about entering the retail payment link, and don't think that it can do better than others;


(3) The central bank needs to accurately measure accounting and establish custody rules, to achieve 100% reserve to maintain stability, and to correct the incentive mechanism;


(4) The pilot should limit the scope as much as possible. It must be designed in advance. Technology inventors and innovators may not be keen on this design, but the central bank should require it to do adequate design;


(5) It is necessary to prevent the cash burning and relying on disguised subsidies (including direct subsidies and cross-subsidies) to grab market share and distort the competition order. In fact, as Yao Qian, former director of the Central Bank's Digital Currency Institute, said, the R&D of the central bank's legal digital currency is aimed at helping innovative currency issuance, circulation and regulation, thereby improving the efficiency of digital economic and reducing the cost.


Beijing


Yi Gang, the governor of the central bank, believes that China is at the forefront of the current global study of digital currencies. According to the PBC's Digital Money Research Project Team, China's issuance of legal digital currency has several distinct advantages:


(1) The construction of financial infrastructure has the advantage of latecomer, the history is short, and the level of digitization is high;


(2) China has become the most active economy in the global e-commerce economy. The potential demand for end users to use digital currency is strong and the application scenarios are abundant.


Therefore, the establishment of China's legal digital currency issuance and circulation system is of great significance to the construction of financial infrastructure, the implementation of monetary policy, the maintenance of financial stability, the strategy of RMB internationalization, and even the promotion of economic upgrading and efficiency improvement.


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评论

旧友与酒

币看果然走的是国际路线啊。。
08-03
08-03

天真过后的成熟

币看上和国外友人的互动可以多来点
08-03

1号Style女郎

看着流批的不行
08-03

匹诺曹

中文版的在哪里?
08-03

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