Former President of Zhejiang Commercial Bank Liu Xiaochun: If the People's Bank of China first introduced digital currency, it will undoubtedly have a great demonstration significance

According to the Beijing News, on November 29, Liu Xiaochun, former president of Zheshang Bank and deputy dean of Shanghai New Financial Research Institute, published an article "Seven Conjectures of the Digital Currency of the Bank of China". The article points out that some central banks are studying digital currencies, but the information is not sufficient, and progress is difficult to estimate. There are also some banks and private institutions doing research, but the information is also more cluttered. Therefore, the Chinese central bank may become the first central bank to issue digital currencies. If the People's Bank of China first introduced digital currencies, it would undoubtedly have a significant demonstration significance:

The first is technology demonstration. The People's Bank of China is an open platform this time, and it is not limited to blockchain technology. This is even more significant because it provides more technical possibilities;

The second is a demonstration of the release framework. This is related to the construction of the digital currency issuance system and operation management system. The central bank of our country adopts a two-tier structure;

The third is the demonstration of social acceptance. This determines whether digital currency has the ability to fully replace the existing currency form, or is only a supplement to the existing currency form, so it is more critical;

The fourth is social cost demonstration. The circulation of each currency form has social operating costs. For example, the social operating cost of metal currency is higher than paper currency, and paper currency is higher than bookkeeping currency. At present, the cost of digital currency will be lower, but this requires practical testing;

The fifth is to extend the display range. That is, through the research and development and application of digital currency, the application of related technologies in other aspects of the financial field can be explored.