Attention! The central bank has made a big move! Will paper money disappear?

After the dust settled on the US election, the RMB started to fall continuously. Just when everyone was worried about how to avoid the shrinkage of wealth, the central bank revealed another blockbuster news: your money may be in danger!
The central bank revealed breaking news: paper money may disappear in the future?
"Cash will most likely not exist in ten years." Not long ago, John Cryan, co-CEO of Deutsche Bank, predicted in Davos. The recent news that the People's Bank of China is preparing to set up a digital currency research institute has further sparked heated discussions, and people from all walks of life have speculated that the central bank's digital currency is getting closer.
Just on November 15, the Financial Times, a subsidiary of the central bank, reported that Yao Qian, head of the preparatory group of the central bank's digital currency research institute, said that the digital currency issued by the central bank is currently mainly to replace physical cash, reduce the cost of issuing and circulating traditional paper currency, and improve the convenience and transparency of economic transaction activities.

However, China has a large population and a large size. It takes about ten years for China to change a version of paper currency, which can be completed in a few months in a small country. Therefore, for a long period of time, digital currency and paper currency will coexist and circulate. For ordinary people, when they go to the bank to withdraw money in the future, they can choose to exchange physical cash or digital currency.
So, some people may ask, what is the difference between digital currency and electronic payments such as Alipay and WeChat Pay?
Alipay and other payment methods are just electronic payment methods. The money used in transactions comes from bank accounts, which means that the money in Alipay actually corresponds to banknotes, while digital currency is money. In actual use experience, digital currency may feel similar to electronic payment methods, but the two are essentially very different.
In addition, digital currency is different from virtual currency. For example, the well-known Q coins and the currency used to top up in various games are virtual currencies. These virtual currencies can only be purchased with real money and cannot be converted into real money.

Globally, the most famous digital currency may be "Bitcoin", in addition there are "Litecoin", "Dogecoin", and our country's folk "Yuanbao Coin" and so on.
However, these digital currencies do not have a centralized issuer, and anyone can participate in the manufacturing and circulation around the world. The central bank digital currency is a legal currency issued by the central bank, encrypted, and backed by national credit. It is understood that the development of a prototype system for legal digital currency is currently underway. As for when China's legal digital currency can be launched, there is no timetable at present.
Will the banknotes in your hand shrink?
Will the issuance of digital currency change the amount of currency in circulation? Will the currency in our hands shrink due to the increase in currency issuance?
In this regard, Huang Zhen, director of the Institute of Financial Law at the Central University of Finance and Economics, said that digital currency mainly refers to the form of currency and will not cause currency shrinkage. The scale of currency issuance is still controlled by the central bank, and whether to issue paper money or digital currency is just a change in form.

In addition, Huang Zhen mentioned that the issuance of digital currency is still in the exploratory stage. It is an innovative mechanism for currency value symbols, and many issues are still under study. However, in practice, people are increasingly inclined to use electronic banking and electronic payments, and are unwilling to carry paper money. Under this trend, the paper money circulating in the market may decrease in the future.
Your life will be completely changed! These four types of people are in trouble. He Maochun, director of the Economic Diplomacy Research Center of Tsinghua University, said that compared with paper money, digital currency has obvious advantages. It can not only save the cost of issuance and circulation, but also improve the efficiency of transactions or investments, and enhance the convenience and transparency of economic transactions. However, the following types of people will not be able to sit still.
Bank tellers With the advent of the digital currency era, people will carry less and less cash with them, so naturally there will be fewer people who need to go to the bank to do business, and naturally there will not be a need for so many tellers to handle cash transactions.
With less cash in circulation, printing and mint employees certainly don't need to print as many banknotes.
As the transparency of economic transactions increases, it will be more difficult for people who evade taxes to launder money and evade taxes.
It will become increasingly difficult for thieves to steal.