Li Lihui: After the launch of DC / EP, the central bank still has absolute power to regulate currency

According to Sina Finance News, on November 29th, at the ReFinTech Financial Technology Summit, Li Lihui, the head of the China Mutual Fund Association's blockchain and the former president of the Bank of China, stated that the number of subjects with legal status, endorsement of national sovereignty, and issuing responsibility Currency composition constitutes legal digital currency, or central bank digital currency. According to relevant information, China's legal digital currency may be called DC / EP, that is, digital currency and electronic payment. The digital currency of China's central bank adopts a two-tier operation delivery system and inherits the indirect issuance model. Compared with the "central bank-public" direct approach model, the indirect issue model of "central bank-commercial bank-public" has the following advantages: First, the central bank can have absolute power and ability to regulate and control the money market and can directly absorb it. Public deposits, which will limit the initial credit capacity of commercial banks. The second is to inherit the leading currency market operation mechanism and monetary policy transmission mechanism. This means that it is not necessary to rebuild the financial infrastructure to help save investment. It is not necessary to restructure the currency distribution and management structure in addition to the old ones, which is conducive to risk management. It is not necessary to look forward and backward to tie the currency issue model with different characteristics, which is conducive to stabilizing the market.