Digital Asset Research Institute Long Baitao: Digital currency is essentially to access the central bank's currency in the form of tokenization

On December 22, 2019, the Digital Asset and Blockchain Annual Conference 2019 and the China Investment Association Digital Asset Research Center Establishment Conference was held in Beijing. At the meeting, Dr. Long Baitao, an independent researcher of monetary and financial theory and executive deputy director of the Academic and Technical Committee of the Digital Asset Research Institute, delivered a keynote speech entitled "Central Bank Digital Currency: Global Consensus and Division". Speaking of wholesale bank digital currencies, Long Baitao pointed out that in essence, it is a traditional financial institution that can already access the central bank and access the central bank's currency in the form of tokenization. It can be used between institutions. Its main role is to improve settlement liquidity and reduce costs. It has almost no impact on monetary policy. In contrast, the ECB is now at least at least issuing wholesale central bank digital currencies to gain the advantage of the benchmark CBDC.
Retail central bank digital currencies are essentially open to non-bank institutions or individuals, even non-residents. The most important role is to weaken the ability of commercial banks to create money. The most direct issue of the retail central bank digital currency is to undermine the ability of commercial banks to create money. The Fed is not issuing retail central bank digital currencies for five years, and the European Central Bank remains vigilant.