On October 14, the Peoples Daily published Global Central Bank Digital Currency Research and Development Enters the Fast Track today, pointing out that during the prevention and control of the new crown pneumonia epidemic, the trend of cashless payments has accelerated, and many countries have accelerated the development and testing of central bank digital currencies. In the future, digital currency will profoundly change the financial infrastructure and peoples daily life.
According to media sources, 2020 is called the first year of global central bank digital currency. Under the influence of multiple factors, various countries and regions have accelerated the implementation of digital currency. Among them, the Central Bank of Chinas digital currency (DC/EP) has actively carried out city pilots and wallet tests this year, including the internal test of the DC/EP wallet of the Agricultural Bank of China; domestic Internet giants announced the test of DC/EP; Suzhou, Shenzhen, Xiongan, Chengdu Tests in four pilot areas; in the near future, the CCB App briefly launched DC/EP wallets at the end of August; internal testing of employees of the Shenzhen Branch of the four major banks of Industrial and Agricultural China Construction in early September; The tens of millions of digital currency red envelopes distributed by the event can already be consumed at 3,389 merchants in Luohu District. Up to now, DC/EP has basically completed the top-level design, standard formulation, function research and development, testing and other work, and is at the forefront of the worlds central banks.
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Central banks of various countries actively participate in digital currency research, and China is at the forefront of the world
It is understood that the Bank for International Settlements (BIS), which has been observing the progress of digital currencies in various countries for a long time, publishes several related research reports every year. The results of the questionnaire survey show that all central banks have begun theoretical and conceptual research on digital currency, of which about 49% have entered the experimental or proof-of-concept stage, and about 10% have entered the development or pilot stage. As of mid-July this year, at least 36 central banks around the world have released central bank digital currency plans.
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DC/EP draws on the advantages of existing cryptocurrencies and will become a strong competitor for global digital currencies
According to reports, DC/EP draws on the technical solutions and operating characteristics of existing cryptocurrencies, including a certain degree of anonymity, anchoring with legal currency, and the use of distributed technology, which can conduct peer-to-peer transactions. At the same time, it also has the exclusive features of the worlds first national sovereign digital currency, including M0 attributes, centralized management, unlimited legal compensation, dual offline payment, etc. To expand, it is different from existing cryptocurrencies, DC/ EP maximizes the usage attributes of cryptocurrencies. It can replace part of banknotes, and strengthen the attribution of money in the blueprint of cashless society; it can also complete payment through DC/EP when the network is disconnected; unlimited legal compensation makes us unable to refuse to use DC/EP for payment; The controllability of centralization and anonymity also guarantees asset security to a certain extent.
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The landing of DC/EP may promote the structural adjustment of the encrypted financial industry
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Rationally view the correlation between DC/EP and encrypted finance
From the perspective of encrypted financial service institutions, the progress of DC/EP may not be directly related to the development of the encrypted financial industry. In terms of attributes, DC/EP is the digitization of banknotes, which is two concepts compared to the encrypted currency or encrypted assets mentioned in the industry. Recently, Fan Yifei, deputy governor of the Peoples Bank of China, published a signed article in the Financial Times, further emphasizing the basic points of DC/EP:
First, the digital currency (“DCEP”) to be launched by the People’s Bank of China is the digital renminbi;
Second, the digital renminbi is positioned as cash in circulation (M0);
Third, the exchange of digital renminbi can only be handled by designated commercial banks.
Cryptocurrency or encrypted assets refer to the native assets on the chain based on blockchain technology, which is another system independent of the current legal currency system. However, whether the two systems will usher in the intersection in the future is still uncertain.Amber Group said in this regard: It will continue to pay attention to the progress of DC/EP, and is always ready to provide users with related services around DC/EP and other cryptocurrencies, and create more long-term value for the encrypted financial industry.
