Hot discussion on Libra, what is the significance of the central bank’s two-year promotion of digital currency research and development?

"If the central bank directly issues digital currency, it will help to improve the payment function and enhance the effectiveness of the monetary policy. In the future, it will promote the central bank's digital currency research and development." Wang Xin, director of the Central Bank Research Bureau, said on July 8. This is the second time this year that the central bank has publicly promoted digital currency research and development. In February of this year, Fan Yifei, deputy governor of the central bank, said that he would steadily push forward the research and development of the central bank's digital currency and strengthen the monitoring and disposal of virtual currency.

Wang Xin made the above remarks at the "Digital Financial Open Research Program Launching Ceremony and the First Academic Symposium" yesterday. The meeting also discussed the digital currency Libra released by Facebook. 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".

Central Bank Wang Xin: The direct issuance of digital currency by the central bank will help improve the effectiveness of monetary policy

• Libra "forces the palace"
• Why does the United States strongly stop Zuckerberg’s digital currency plan?
• "Old World" Deutsche Bank's big layoff "New World" BTC broke through 12,000 US dollars

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.

Wang Xin said at the above discussion 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.

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 can be done in detail; 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.

"To make more Chinese voices, not only the voice of the government, but also the voice of the market. We will promptly promote the development of international standards and rules that are conducive to China." Wang Xin said.

The central bank has proposed to promote digital currency research and development in the past six months.

This is the second time the central bank has publicly promoted the development of digital currency in the past six months. At the 2019 National Monetary and Gold Work Conference held in February this year, Fan Yifei, deputy governor of the central bank, said that it would steadily push forward the research and development of the central bank's digital currency and strengthen the monitoring and disposal of virtual currency.

In fact, the People's Bank of China set up a dedicated research team in 2014 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. However, the news of the establishment of the research team was announced in January 2016, when the central bank said that it would strive to launch the digital currency issued by the central bank as soon as possible.

"The issuance of digital currency can reduce the high cost of traditional banknote issuance and circulation, enhance the convenience and transparency of economic transactions, reduce illegal activities such as money laundering and tax evasion, and enhance the central bank's control over money supply and currency circulation." It was announced when the establishment of a dedicated digital currency research team.

In January 2017, the central bank officially established the Digital Currency Research Institute in Shenzhen; in September 2018, the institute established a trade finance blockchain platform.

In the next public speech, Sheng Songcheng, the former director of the Bureau of Investigation and Statistics of the Central Bank, explained 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 blockchain technology, the 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 centralized institutions.

Industry insiders hotly discuss Facebook's cryptocurrency Huang Yiping: Be wary of us being "over the corner"

In recent years, the Internet boom has changed the existing financial format, and it is widely expected that it will have a change impact on existing currency issuance. Not only the People's Bank of China, but the world has shown great interest in digital currencies, including many institutions including the Nasdaq Stock Exchange, Goldman Sachs, and Morgan. Just recently, Libra, the digital currency released by Facebook, has caused widespread concern.

Huang Yiping said at the seminar that the new cryptocurrency launched by Facebook, although not sure whether it will succeed, is a very important alarm for China's digital finance field. It tells us that although the field is temporarily leading, it may also be bent. Road overtaking. Whether it is the digital currency released by Facebook or the digital currency of another company, as long as it succeeds, it may lead China in international payment.

Huang Yiping believes that at present, the development of China's financial technology is very exciting, but it also encounters many potential challenges. I don't know how long the advantage can last. But we can seriously study and analyze. What kind of business form is this, whether it is sustainable, what is its law, whether it can bring about changes in the financial system, is a simple short-term impact, or Continued challenges to the laws of finance.

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 as the most basic financial facility should build a multi-level financial market, so the reform in the payment field should be accelerated.

So how to maintain the advantage of China's digital finance field is concerned

"Maintaining the advantages depends on the industry first." Dean Sheng Shenglin from the Institute of Internet Finance of Zhejiang University said that it is then the government's rules. This is very important. The rules and regulations must be caught up. The last is talent, the whole country, digital infrastructure. The money spent is not enough, and the ability of informationization and digital management within the enterprise is not enough.

Bai Duoguang, dean of China Inclusive Finance Research Institute of Renmin University of China, believes that there are still a large number of rural areas in China that need to be digitized. The digital inclusive finance of agriculture in China must be fully blossomed in rural areas so that China can maintain a huge lead.

Zhang Chun believes that China's current advantage is not obvious, only a little advantage in the field of mobile payments, there is still too much to do in the financial sector. Innovation needs to rely on the capital market. The capital market must have a better stock market, private equity, etc., and finally realize the convertibility of the renminbi. If this is not done well, it will not be able to compete with Libra in the third world. (New Beijing News)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!