(Financial World) What will the world's first central bank digital currency bring?
China News Service, Beijing, July 30 (Reporter Xia Bin) When central banks of various countries are deploying digital currencies, Lithuania drank the "head soup". The country recently issued the world's first central bank digital currency based on blockchain technology. , Named "LBcoin", aroused industry attention.
However, the main purpose of the digital currency is as a commemorative collection, rather than in various payment circulation scenarios. LBcoin is sold in groups of 6 for 99 Euros.
What will the world's first central bank digital currency bring? Sun Hangkong, a senior researcher of MoChain Technology, said in an interview with a reporter from China News Agency that the launch of LBCoin can improve the legal, technical and network security issues of digital currency and provide valuable experience for the full implementation of digital currency in the future. To a certain extent, it has prompted various countries to accelerate the development and launch of central bank digital currencies, and also provided a certain reference.
At the same time, in terms of supervision, the most important issues facing digital currencies are anti-money laundering and anti-terrorism financing. In this regard, the People's Bank of China Digital Currency (DCEP) combines big data with controllable anonymity, which can effectively screen anti-money laundering and other illegalities. Criminal activities can greatly protect the privacy of citizens.
"The landing of the central bank's digital currency means that the trend of paperless currency has begun, which will greatly promote the globalization of trade in the future. The competition in the currency market will also bring about a more prosperous global economy, which will profoundly change society and change Everyone’s life.” Alicia, senior partner of KuCoin, told a reporter from China News Agency.
Alicia believes that the emergence of new things like digital currency often poses more severe challenges to supervision. "Supervision is very important to the healthy development of digital currencies. Supervision is a balanced art. It needs to be measured. It must prevent systemic risks, but it must not obstruct the development of emerging economies across the board."
Once the central bank's digital currency "blooms everywhere" in the future, what impact will this have on the global dollar hegemony? Sun Aerospace believes that although countries in the world have not issued large-scale central bank digital currencies for the time being, the process of gradually issuing central bank digital currencies in the future is the process of "de-dollarization". Central bank digital currencies will be confronted by countries. One of the powerful weapons of dollar hegemony.
"The digital currencies launched by central banks have challenged the status of the US dollar as an international currency." Alicia emphasized that digital currencies are difficult to replace the US dollar in a short period of time, and it is also difficult to affect the hegemony of the US dollar, but it is important to weaken the hegemony of the US dollar. Meaning.
What can you expect from the Chinese central bank digital currency (DCEP) in preparation? Cheng Shi, chief economist of ICBC International, believes that from an internal point of view, with DCEP as the fulcrum, the digital upgrade of monetary policy tools is expected to expand the policy space and enhance policy effectiveness from three levels. The first is to accelerate the deepening of inclusive finance, the second is to strengthen the directness of monetary policy, and the third is to overcome the "liquidity trap."
From the perspective of inclusive finance, Cheng Shi pointed out that at the technical level, DCEP has the effect of reducing transaction costs, improving credit efficiency, and strengthening payment convenience. Based on this, the central bank can further promote the orderly development of financial technology and accelerate the digital transformation of the financial industry.
As the underlying technology of digital currency, blockchain is also ushering in new development opportunities. As of the end of July, China’s Hebei, Guizhou, Hunan, Beijing, Guangzhou, Ganzhou and many other provinces and cities have issued blockchain development action plans to plan the construction of blockchain platforms and the promotion of enterprise “chaining”. The block chain industry is ushering in a period of development.
In addition, the Central Bank of China issued the "Notice on Issuing Financial Industry Standards to Promote the Application of Blockchain Technology Specifications" and "Blockchain Technology Financial Application Evaluation Rules", requiring various financial institutions to regularly conduct external security assessments and carry out blockchain technology applications Filing work.
Alicia bluntly said: “A sound regulatory system is a sign of the mature development of the industry. The two official documents put forward a set of specifications and guidance on the development of the blockchain industry from the perspective of top-level design. The chain empowers the financial sector to give correct guidance."
Sun Aerospace pointed out that the two documents have a positive role in promoting the healthy development of blockchain technology in the financial field. It can be seen that 2020 will become an important year for the integration of blockchain and industry. The formulation of technical standards and business norms can enhance China's right to speak in the financial blockchain field. (Finish)