"The central bank wants to promote the development of digital currency"

"The central bank wants to promote the development of digital currency"

July 9th news: Following the launch of the cryptocurrency project Libra triggered major external attention, China's central bank to promote digital currency research and development once again attracted the attention of everyone, and boarded the microblogging hot search list. Yesterday, Wang Xin, director of the Research Bureau of the People's Bank of China, said at the launching ceremony and the first academic seminar of the Digital Finance Open Research Program that the direct issuance of digital currency by the central bank will help improve the effectiveness of monetary policy and promote the central bank's digital currency research and development in the future.

"The central bank wants to promote the development of digital currency"

Wang Xin said that the digitization of the central bank's currency will help 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 also discussed Libra, the encryption project released by Facebook. In fact, when Facebook released Libra, the central bank's digital financial research platform was also established, and it was supported by Alibaba Ant Financial. Wang Xin also said that the launch of Libra has attracted the attention of the central bank.

Because it claims to be a basket of currencies, it solves the problem of trust and widespread use to some extent. In addition, it is based on Facebook's large-scale social networking platform. With further use, in addition to its potential to play a role in the payment field, it may also exercise its monetary function. This may have a major impact on the monetary policy, financial stability and even the international monetary system of each country. In response to Libra's challenges, Wang Xin believes that various current ideas such as: speeding up the introduction of central bank digital currency, countries issuing Libra products in their own countries, and the IMF (International Monetary Fund) have proposed to issue a super-sovereign digital currency. It is worthy of attention.

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


Was this article helpful?

93 out of 132 found this helpful

Discover more


HECO Chain Bridge Exploit: HTX Loses Millions and Investors Hold Their Breath

HTX has reached an impressive milestone of $2 billion in client and enterprise assets.


Demystifying 9 Myths About Bitcoin

Not long ago, Bitcoin celebrated its 11th birthday. Whether you are a supporter or opponent of Bitcoin, you cannot de...


South Korean Financial Authorities Cracking Down on Unlicensed Crypto Exchanges Start Reporting Now!

Fashionista Alert Digital Asset Exchange Association Warns Against Unauthorized Business Operations


The rising bitcoin, the mad burning mining machine manufacturer: the real exploration of the Huaqiang North ups and downs of the mining machine rivers and lakes

Manager Yang picked up the computer on his hand and knocked out the latest price of the bitcoin miner. This is alread...


Super Plus enjoy! The holders of Bitcoin who entered the market a year ago finally got a profit today, far exceeding other mainstream currencies.

In the early hours of Beijing time, Bitcoin quickly rose through $8,800, setting a new high in the past 12 months. In...


Bitcoin is not a value store, it will never be, Bitcoiners may be wrong.

Bitcoiners claims that BTC is a means of value storage, but according to a fund manager, Bitcoin does not meet the re...