Li Lihui: There are four advantages to fiat digital currencies

Li Lihui, former President of the Bank of China, said at the "Digital Currency Future" seminar on the 13th that digital currencies with legal status, endorsement of national sovereignty, and subjects with issuance responsibility constitute legal digital currencies, or central bank digital currencies. Fiat digital currency has four advantages: one is to save the cost of cash circulation; the other is to strengthen the public attributes of the payment system; the third is to provide end-to-end reliable payment tools for digital asset transactions; the fourth is to strengthen the transmission mechanism of monetary policy. Digital currency will play a central role in the future global digital economic competition. It is necessary to step up research on the feasible path and implementation plan for the issuance of China-led global digital currency; further improve the specific structure of China's legal digital currency.