A review of the central bank's digital currency research and development process

Currency digitization helps optimize currency payment

Wang Xin said at the seminar that the central bank can adjust the central bank's digital currency interest rate, affecting the bank deposit and loan interest rate, and help break the zero interest rate lower limit.

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In Wang Xin’s view, the digitization of the central bank’s currency helps to optimize the central bank’s monetary payment function and increase the central bank’s monetary status and monetary policy effectiveness. The central bank's digital currency (CBDC) can become an interest-bearing asset that satisfies the holder's reserve demand for safe assets and can also become the lower limit of bank deposit interest rates. The CBDC can also be a new monetary policy tool.

China's financial market should be urgent about Libra's release

In addition, there was a heated discussion on Libra, the digital currency released by Facebook.

Wang Xin said that if Libra is widely used to pay especially cross-border payments, whether it can function like money, and therefore has a major impact on monetary policy, financial stability and the international financial system, we are not sure. But the national monetary system is a good choice.

Zhang Chun, dean of the China Finance Research Institute of Shanghai Jiaotong University, said that after the emergence of Libra, the reform of China's financial market should also have a sense of urgency. At present, China mainly relies on the state-owned banking system to make payments, but payment should build a multi-level financial market, so the reform in the payment field should be accelerated.

"There is only a little advantage in the mobile payment field. There is still too much to do in the financial sector. If this is not done well, you will not be able to compete with Libra in the third world."

The next step is to actively explore digital finance

According to the news of the Beijing News, Wang Xin also proposed the direction that the central bank should explore and work hard to develop in the future. He said that the next step is to explore digital finance to better support the development of the real economy.

At present, digital finance business and product homogenization are serious. We should develop diversified and comprehensive financial services to meet the multi-level and diversified financial needs of the real economy. It is necessary to study how digital inclusive finance is done and how to promote cooperation between small and medium-sized financial institutions and big banks and technology giants in the field of financial technology.

At the same time, it is necessary to "improve the framework of the financial technology regulatory system, develop regulatory technology, and strengthen the construction of digital financial infrastructure;

It is necessary to study how to formulate data standards for digital finance, promote the unification of data standards, and improve the machine readability of data;

It is also necessary to strengthen international coordination and cooperation in the field of digital finance and enhance China's right to speak in the field of digital inclusive finance. ”

This year, the central bank has released positive signals on the issue of digital currency.

In fact, this is the second time this year that the central bank has publicly promoted digital currency research and development. In February this year, Fan Yifei, deputy governor of the central bank, said that he would steadily push forward the research and development of central bank digital currency and strengthen the monitoring and disposal of virtual currency.

Huang Yiping, a member of the former central bank's monetary policy committee and vice president of the National Development Research Institute of Peking University, said that Facebook's launch of a new cryptocurrency is an important alarm for China's digital finance sector. We must be alert to the fact that we have been "overtaking".

As early as 2014, the central bank set up a special research team to conduct in-depth research on digital currency issuance and business operation framework, key technologies of digital currency, distribution and circulation environment, and legal issues faced.

In January 2016, the central bank set up a research team and expressed its intention to launch the digital currency issued by the central bank as soon as possible. In January 2017, the central bank officially established the digital currency research institute in Shenzhen; in September 2018, the institute established the trade finance zone. Blockchain platform.

The former director of the Bureau of Investigation and Statistics, Sheng Songcheng, explained in a public speech that, first of all, the digital currency is issued by the central bank, not decentralized; secondly, unlike the existing electronic form of the local currency, the future central bank digital currency may be based on the district Blockchain technology, local currency with decentralized bookkeeping characteristics; third, the future central bank digital currency can achieve “peer-to-peer” payment settlement without the need for third-party centralization agencies.

Source: 31QU

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