Xue Hongyan: The issuance of legal currency will reduce the proportion of cash use and reduce the pressure on financial institutions to keep and pay for cash.

Xue Hongyan, assistant to the president of Suning Financial Research Institute, said that the issuance of legal digital currency will reduce the proportion of cash use and reduce the pressure on financial institutions to keep and pay for cash. In addition, digital currency is traceable, and it is easier for financial institutions to control the flow of funds, which is important for financial business processes and regulation. Xue Hongyan believes that in terms of the daily experience of ordinary users, digital currency storage and payment transactions will not be substantially different from the current electronic payment experience. In addition, digital currency is inseparable from the support of information infrastructure, its application scenarios have limitations, and cash is still needed in certain scenarios. Therefore, the use of cash will decline, but it will always exist. Xue Hongyan's analysis does not have a drastic impact on the existing financial system. It is a key issue for the central bank to use as a principle to select technology routes and promote pilot programs.