Huang Yusong, deputy secretary-general of the Financial Research Center, expressed the envisioned central bank digital currency model at the forum

Golden Finance News - In the development of financial technology, blockchain technology and the related Bitcoin are considered to be extremely disruptive.

Huang Yusong introduced that digital currency is divided into virtual currency and electronic currency. Image source: Golden Finance

There was even a saying on the Internet that "Bitcoin will replace the monetary system", and its price was still at a high of 7263.59 yuan. Whether in the regulatory or academic circles, there has been constant criticism of Bitcoin.

On April 22, at the inaugural ceremony of the China Fintech 50 Forum, Qin Yi, Deloitte Asia Pacific Investment Management Industry Managing Partner, said that Bitcoin cannot become legal tender because it lacks anti-money laundering and KYC (know your customer).

——Huang Yusong, deputy secretary-general of the Internet Finance Research Center of the Financial Research Institute of the People's Bank of China, also said at the forum that Bitcoin is well accepted in some markets, and some central banks are discussing whether to recognize the status of Bitcoin. However, he agrees with the above view that Bitcoin can become an alternative currency for central banks.

Whether in the regulatory or academic circles, there has been constant criticism of Bitcoin. Image source: Golden Finance

——The Digital Currency Research Institute was established by the central bank, and Yao Qian, deputy director of the central bank’s science and technology department, served as the head of the preparatory group.

Huang Yusong introduced that digital currencies are divided into virtual currencies and electronic currencies. Virtual currencies include Q coins with transaction value, game coins, and Bitcoin.

Electronic money is divided into two parts. The first is the electronicization of money, which means that licensed financial institutions use the Internet to circulate, transfer and pay money through electronic signals. The essence is that licensed financial institutions rely on licenses to perform the functions granted by the state. The second is electronic money, which mainly refers to third-party payment institutions using the existing system to complete the corresponding functions.

Huang Yusong also said that in the future, there may be new electronic currencies issued by the central bank other than traditional electronic forms, which are different from currency computerization in the process of circulation, payment, transaction and settlement, but how to implement them is still under exploration. There is no clear timetable yet. He also reminded that the central bank has not issued any digital currency so far, but is constantly advancing its research. It takes a long time for new things to go from concept to realization to implementation. In some areas, fraud has occurred under the banner of digital currency.

Huang Yusong also mentioned that since the establishment of Guiyang Big Data Exchange, 15 regional big data trading centers have emerged across the country. In the next 3-5 years, big data trading will show explosive growth. We should explore and pay attention to the development of digital currency and develop the digital economy. The investment and application of artificial intelligence should be increased, and the prospects are broad.