“If you can’t beat them, join them”.
The release of the Libra white paper has caused a great uproar in public opinion, and the revealed payment performance seems to more and more confirm the authenticity of the proposition that currency digitization is the future of currency. Once Libra is officially circulated, the status of fiat currency will be seriously threatened, and traditional monetary policies will also be severely challenged.
In fact, as early as 2014, countries that have always been paying close attention to international finance realized the importance of digital currency for the first time. After rigorous evaluation, they began to carry out the research and development of central bank digital currency (CBDC) intensively, and the release of the Libra white paper It’s more like a catalyst.
China’s central bank believes that digital assets must be placed under central bank supervision to guard against potential foreign exchange risks. In its work plan for the second half of 2019, the central bank said it would “accelerate research on China’s legal digital currency.”
The progress of CBDC research and development on a global scale is gradually emerging, and the “national team” of digital currency seems to be about to enter the market.
1. Five years of hard work, the central bank’s digital currency is “ready to come out”
After ten years of development, digital currency has become popular around the world and has gradually become a trend. More and more countries have begun to deploy CBDC, including China, the United States, India, Singapore, Canada, Sweden, the Bahamas, Uruguay, and Kazakhstan.
Among them, India has included the digital rupee in the draft of the cryptocurrency bill, Singapore is working on a digital currency project called UBIN, the Bank of Canada is working on designing Jasper, the United States is considering issuing FedCoin (Federal Currency), and Sweden’s central bank is advancing “e-Krona” project, Kazakhstan is researching a digital asset pegged to fiat currency called CryptoTenge pair…
In addition to being influenced by Libra, there are four reasons for central banks to promote CBDC research and development: first, to solve the problem of payment efficiency, making transactions faster and more cost-effective; second, to stimulate the potential of anti-money laundering procedures and combat financial Third, reduce tax evasion, corruption of public officials, etc.; fourth, crack down on the monopoly power of commercial banks over retail deposits.
In addition, once CBDC is successfully launched, it will endow encrypted assets with functions other than investment and speculation, and have the functions of value scale, circulation tool and storage means like legal currency, and at the same time reduce the cost of the real economy and improve efficiency. and many other aspects of empowerment.
Among all countries, China is expected to become the first major economy in the world to launch a central bank digital currency.
Previously, the Global Times said that China must participate in this round of digital economic competition. “With the advent of the era of global digital economic competition, it is necessary for Chinese industries and regulators to have more dialogues on digital currency, understand and even encourage digital currency. Otherwise, China may fall behind in the new financial landscape.”
Obviously, the central bank realized this early on.
“It can be said that the central bank’s digital currency is ready to come out.” Mu Changchun, a specially invited member of CF40 and deputy director of the Payment and Settlement Department of the People’s Bank of China, held the “Third China Financial Forty Forum” (CF40) on August 10. “Financial Forty People Yichun Forum” said.
In addition, he also revealed that the central bank’s digital currency will adopt a “two-tier operation system”, that is, the central bank will first exchange the digital currency to banks or other operating institutions, and then these institutions will exchange it to the public. In order to ensure that the central bank’s digital currency is not over-issued, commercial institutions need to pay full and 100% reserves to the central bank.
As early as at the launch ceremony of the Digital Finance Open Research Program on July 8, Wang Xin, director of the Research Bureau of the People’s Bank of China, said that the State Council has officially approved the research and development of the central bank’s digital currency.
The speech of Deputy Director Mu Changchun revealed the news that the prototype of the central bank’s digital currency has been successfully developed.
In fact, the successful research and development of the central bank’s digital currency was not achieved overnight. As early as 2014, under the leadership of the then president Zhou Xiaochuan, the central bank established a special cryptocurrency research group responsible for formulating the issuance of digital currency DC/EP. Frame with operations.
Five years of hard work will eventually lead to success.
2. Zhang Yichi creates a history of “Chinese-style” digital currency development
Earlier, at a briefing for Chinese and foreign media held by the Ministry of Foreign Affairs, Chen Yulu, deputy governor of the People’s Bank of China, said, “The G20 is concerned about the application of new technologies in the financial field, including digital currencies, encrypted assets, etc. China should say in this regard. It’s a better job.” At the same time, he also proposed that while the summit encourages innovation, it should also pay attention to the risks of encrypted digital assets in consumer and investor protection, anti-money laundering and other aspects.
In the early stage of the industry’s development, it was a situation of “fighting between heroes”, which is the most likely to breed crimes. Leading enterprises should not only focus on “expanding the territory”, but also “responsible for defending the territory”, preventing risks such as anti-money laundering, and always upholding the pursuit of The ingenuity of perfect risk control technology takes protecting the rights and interests of users as the important task, driving the entire industry to develop in an orderly manner.
There are very few companies that have done remarkable things at this point, and OK is one of them. It has been committed to the research of anti-money laundering control. At present, it not only realizes the continuous monitoring of customer transactions, but also realizes the real-name authentication of customers by supporting users in dozens of countries to use their national ID cards or driver’s licenses for KYC2 authentication. Leading companies should do so.
I believe that as long as the country needs it, the leading entrepreneurs with a sense of responsibility will spontaneously twist into a rope to contribute to the national economic construction.
As we all know, the central bank has always maintained a relatively strict supervision of the digital currency market, but on the other hand, it is vigorously developing CBDC. Some people speculate whether this is paving the way for the implementation of legal digital currency? For many small and medium-sized enterprises that are deeply involved in the field of encrypted assets, will it usher in a devastating blow?
In fact, this is not the case. China has just entered a wealth-based society, and the people’s pursuit of emerging things is based on greedy wealth dreams. Without the escort of relevant laws, this makes the bubble effect of blockchain and digital currency more obvious. , out of investor protection and social stability considerations, the government should naturally embrace emerging industries cautiously.
What the central bank is thinking about is how the encrypted digital currency can be used by big countries and how it can become a historical tool to reshape the world economy and reconstruct the global interest pattern. This is the research vision of CBDC.
One by one, it seems to be a suppression move, but in fact it is to ensure the stable and healthy development of the digital currency market.
At present, most of the digital currencies issued in the market basically have investment attributes. The digital currencies issued by the central bank need to learn from the advantages of traditional currencies and non-cash payment tools. The focus is on the payment attributes. Strictly speaking, the two currencies It is not a competing product, and there is no way to talk about suppression. On the contrary, digital currency platforms can provide advice and suggestions for the research and development of CBDC with relevant experience.
Zhang Rui, a professor of economics, once said in an article that the development of institutional digital currency and the development of legal digital currency are not antagonistic and exclusive. On the one hand, the country can refer to the “horse racing” mechanism on the technical route, select the best from the designated digital currency research and development institutions, or carry out diversified and organic integration of technology, and rely on market forces to complete the development of legal digital currency; at the same time, the country can also Adopt the method of purchasing services, purchase ready-made products from institutions with existing technical achievements, and directly transform and upgrade mature private digital currency into legal digital currency.
This point of view, the author agrees, strong cooperation will definitely appear “1 + 1 “2” effect.
It is expected that under the leadership of the central bank, China can launch its own sovereign digital currency as soon as possible to help my country’s digital finance enter the era of globalization as soon as possible.
3. The future is unpredictable, the future will come
Over the past ten years, Bitcoin has been used in various black transactions due to its “extra-legal” attributes, and its strong investment value has driven many investors crazy. Its underlying technology, blockchain, was once a myth and became an enabling tradition. One of the most effective technologies in the industry, many digital currencies modeled on Bitcoin have emerged one after another, and the news of “scam” once occupied many media headlines.
With the baptism of time, the bubble has gradually disappeared, the market has gradually calmed down, and the industry has turned from an initial disorderly development to a positive prosperity. The positive value of digital currency and blockchain has begun to be valued by various countries and many technology companies.
Not only countries carry out the research and development of CBDC, but also multinational institutions have begun to deploy digital currencies. First, JPMorgan Chase launched “JPMCoin”, then Facebook issued the Libra white paper, and then Walmart applied for a patent in the field of digital currency. It can be said that with the entry of national and global well-known enterprises, the development of digital currency is entering a new era.
As a new thing, digital currency lacks legal control, so various places have sacrificed regulatory sandboxes to support innovation. It is worth mentioning that national regulations and international standards are also being formulated at an accelerated pace. The G20 summit held in Osaka, Japan, first proposed to support the cryptocurrency supervision guidelines proposed by FATF, and said that it should be “effectively and quickly implemented”, which means that encrypted digital assets are expected to be recognized from a national perspective to an international perspective.
When Satoshi Nakamoto released the Bitcoin white paper ten years ago, did he foresee the situation of digital currency ten years later? After another ten years of reincarnation, will the currency in circulation be completely digital again?
“If you can’t beat them, join them”.
The release of the Libra white paper has caused a great uproar in public opinion, and the revealed payment performance seems to more and more confirm the authenticity of the proposition that currency digitization is the future of currency. Once Libra is officially circulated, the status of fiat currency will be seriously threatened, and traditional monetary policies will also be severely challenged.
In fact, as early as 2014, countries that have always been paying close attention to international finance realized the importance of digital currency for the first time. After rigorous evaluation, they began to carry out the research and development of central bank digital currency (CBDC) intensively, and the release of the Libra white paper It’s more like a catalyst.
China’s central bank believes that digital assets must be placed under central bank supervision to guard against potential foreign exchange risks. In its work plan for the second half of 2019, the central bank said it would “accelerate research on China’s legal digital currency.”
The progress of CBDC research and development on a global scale is gradually emerging, and the “national team” of digital currency seems to be about to enter the market.
1. Five years of hard work, the central bank’s digital currency is “ready to come out”
After ten years of development, digital currency has become popular around the world and has gradually become a trend. More and more countries have begun to deploy CBDC, including China, the United States, India, Singapore, Canada, Sweden, the Bahamas, Uruguay, and Kazakhstan.
Among them, India has included the digital rupee in the draft of the cryptocurrency bill, Singapore is working on a digital currency project called UBIN, the Bank of Canada is working on designing Jasper, the United States is considering issuing FedCoin (Federal Currency), and Sweden’s central bank is advancing “e-Krona” project, Kazakhstan is researching a digital asset pegged to fiat currency called CryptoTenge pair…
In addition to being influenced by Libra, there are four reasons for central banks to promote CBDC research and development: first, to solve the problem of payment efficiency, making transactions faster and more cost-effective; second, to stimulate the potential of anti-money laundering procedures and combat financial Third, reduce tax evasion, corruption of public officials, etc.; fourth, crack down on the monopoly power of commercial banks over retail deposits.
In addition, once CBDC is successfully launched, it will endow encrypted assets with functions other than investment and speculation, and have the functions of value scale, circulation tool and storage means like legal currency, and at the same time reduce the cost of the real economy and improve efficiency. and many other aspects of empowerment.
Among all countries, China is expected to become the first major economy in the world to launch a central bank digital currency.
Previously, the Global Times said that China must participate in this round of digital economic competition. “With the advent of the era of global digital economic competition, it is necessary for Chinese industries and regulators to have more dialogues on digital currency, understand and even encourage digital currency. Otherwise, China may fall behind in the new financial landscape.”
Obviously, the central bank realized this early on.
“It can be said that the central bank’s digital currency is ready to come out.” Mu Changchun, a specially invited member of CF40 and deputy director of the Payment and Settlement Department of the People’s Bank of China, held the “Third China Financial Forty Forum” (CF40) on August 10. “Financial Forty People Yichun Forum” said.
In addition, he also revealed that the central bank’s digital currency will adopt a “two-tier operation system”, that is, the central bank will first exchange the digital currency to banks or other operating institutions, and then these institutions will exchange it to the public. In order to ensure that the central bank’s digital currency is not over-issued, commercial institutions need to pay full and 100% reserves to the central bank.
As early as at the launch ceremony of the Digital Finance Open Research Program on July 8, Wang Xin, director of the Research Bureau of the People’s Bank of China, said that the State Council has officially approved the research and development of the central bank’s digital currency.
The speech of Deputy Director Mu Changchun revealed the news that the prototype of the central bank’s digital currency has been successfully developed.
In fact, the successful research and development of the central bank’s digital currency was not achieved overnight. As early as 2014, under the leadership of the then president Zhou Xiaochuan, the central bank established a special cryptocurrency research group responsible for formulating the issuance of digital currency DC/EP. Frame with operations.
Five years of hard work will eventually lead to success.
2. Zhang Yichi creates a history of “Chinese-style” digital currency development
Earlier, at a briefing for Chinese and foreign media held by the Ministry of Foreign Affairs, Chen Yulu, deputy governor of the People’s Bank of China, said, “The G20 is concerned about the application of new technologies in the financial field, including digital currencies, encrypted assets, etc. China should say in this regard. It’s a better job.” At the same time, he also proposed that while the summit encourages innovation, it should also pay attention to the risks of encrypted digital assets in consumer and investor protection, anti-money laundering and other aspects.
In the early stage of the industry’s development, it was a situation of “fighting between heroes”, which is the most likely to breed crimes. Leading enterprises should not only focus on “expanding the territory”, but also “responsible for defending the territory”, preventing risks such as anti-money laundering, and always upholding the pursuit of The ingenuity of perfect risk control technology takes protecting the rights and interests of users as the important task, driving the entire industry to develop in an orderly manner.
There are very few companies that have done remarkable things at this point, and OK is one of them. It has been committed to the research of anti-money laundering control. At present, it not only realizes the continuous monitoring of customer transactions, but also realizes the real-name authentication of customers by supporting users in dozens of countries to use their national ID cards or driver’s licenses for KYC2 authentication. Leading companies should do so.
I believe that as long as the country needs it, the leading entrepreneurs with a sense of responsibility will spontaneously twist into a rope to contribute to the national economic construction.
As we all know, the central bank has always maintained a relatively strict supervision of the digital currency market, but on the other hand, it is vigorously developing CBDC. Some people speculate whether this is paving the way for the implementation of legal digital currency? For many small and medium-sized enterprises that are deeply involved in the field of encrypted assets, will it usher in a devastating blow?
In fact, this is not the case. China has just entered a wealth-based society, and the people’s pursuit of emerging things is based on greedy wealth dreams. Without the escort of relevant laws, this makes the bubble effect of blockchain and digital currency more obvious. , out of investor protection and social stability considerations, the government should naturally embrace emerging industries cautiously.
What the central bank is thinking about is how the encrypted digital currency can be used by big countries and how it can become a historical tool to reshape the world economy and reconstruct the global interest pattern. This is the research vision of CBDC.
One by one, it seems to be a suppression move, but in fact it is to ensure the stable and healthy development of the digital currency market.
At present, most of the digital currencies issued in the market basically have investment attributes. The digital currencies issued by the central bank need to learn from the advantages of traditional currencies and non-cash payment tools. The focus is on the payment attributes. Strictly speaking, the two currencies It is not a competing product, and there is no way to talk about suppression. On the contrary, digital currency platforms can provide advice and suggestions for the research and development of CBDC with relevant experience.
Zhang Rui, a professor of economics, once said in an article that the development of institutional digital currency and the development of legal digital currency are not antagonistic and exclusive. On the one hand, the country can refer to the “horse racing” mechanism on the technical route, select the best from the designated digital currency research and development institutions, or carry out diversified and organic integration of technology, and rely on market forces to complete the development of legal digital currency; at the same time, the country can also Adopt the method of purchasing services, purchase ready-made products from institutions with existing technical achievements, and directly transform and upgrade mature private digital currency into legal digital currency.
This point of view, the author agrees, strong cooperation will definitely appear “1 + 1 “2” effect.
It is expected that under the leadership of the central bank, China can launch its own sovereign digital currency as soon as possible to help my country’s digital finance enter the era of globalization as soon as possible.
3. The future is unpredictable, the future will come
Over the past ten years, Bitcoin has been used in various black transactions due to its “extra-legal” attributes, and its strong investment value has driven many investors crazy. Its underlying technology, blockchain, was once a myth and became an enabling tradition. One of the most effective technologies in the industry, many digital currencies modeled on Bitcoin have emerged one after another, and the news of “scam” once occupied many media headlines.
With the baptism of time, the bubble has gradually disappeared, the market has gradually calmed down, and the industry has turned from an initial disorderly development to a positive prosperity. The positive value of digital currency and blockchain has begun to be valued by various countries and many technology companies.
Not only countries carry out the research and development of CBDC, but also multinational institutions have begun to deploy digital currencies. First, JPMorgan Chase launched “JPMCoin”, then Facebook issued the Libra white paper, and then Walmart applied for a patent in the field of digital currency. It can be said that with the entry of national and global well-known enterprises, the development of digital currency is entering a new era.
As a new thing, digital currency lacks legal control, so various places have sacrificed regulatory sandboxes to support innovation. It is worth mentioning that national regulations and international standards are also being formulated at an accelerated pace. The G20 summit held in Osaka, Japan, first proposed to support the cryptocurrency supervision guidelines proposed by FATF, and said that it should be “effectively and quickly implemented”, which means that encrypted digital assets are expected to be recognized from a national perspective to an international perspective.
When Satoshi Nakamoto released the Bitcoin white paper ten years ago, did he foresee the situation of digital currency ten years later? After another ten years of reincarnation, will the currency in circulation be completely digital again?
The Links: T298N12TOF 1DI300ZP-120-05