Thoughts on the Prospects of Digital Currency Issuance

With the progress of the times and the change of payment methods , digital currency has attracted more and more attention. The People's Bank of China established a special research team in 2014 and further strengthened the team in 2015 to conduct in-depth discussions and research on the issuance, circulation environment and development technology of digital currency. Under the current new economic normal , the issuance of digital currency has positive practical significance and far-reaching historical significance.

The digital currency referred to by the central bank is an alternative currency in the form of electronic money , which is the electronic version of the RMB and includes blockchain technology. Blockchain refers to a technical solution that collectively maintains a reliable database in a decentralized manner , which is used to achieve seamless integration of digital currency and other payment tools.

At present , the public is increasingly inclined to use online banking, Alipay and other payment tools in daily practice. Under this trend , the issuance of digital currency can reduce the circulation of paper money , thereby reducing the high cost of issuing and circulating paper money and improving the convenience of economic transactions.

Financial institutions now have many accounts , and with the application of digital currency blockchain technology , a unified and reliable database will be established. Any money flow can be recorded and traced , making money laundering, tax evasion and other behaviors exposed to supervision.

After the promotion of digital currency , society, enterprises and individuals are more inclined to use digital currency due to its convenience . The establishment of a digital currency issuance and circulation environment will help further improve China's payment system and enhance clearing efficiency.

     With the progress of the times and the change of payment methods , digital currency has attracted more and more attention. The People's Bank of China established a special research team in 2014 and further strengthened the team in 2015 to conduct in-depth discussions and research on the issuance, circulation environment and development technology of digital currency. Under the current new economic normal , the issuance of digital currency has positive practical significance and far-reaching historical significance.

The digital currency referred to by the central bank is an alternative currency in the form of electronic money , which is the electronic version of the RMB and includes blockchain technology. Blockchain refers to a technical solution that collectively maintains a reliable database in a decentralized manner , which is used to achieve seamless integration of digital currency and other payment tools.

At present , the public is increasingly inclined to use online banking, Alipay and other payment tools in daily practice. Under this trend , the issuance of digital currency can reduce the circulation of paper money , thereby reducing the high cost of issuing and circulating paper money and improving the convenience of economic transactions.

Financial institutions now have many accounts , and with the application of digital currency blockchain technology , a unified and reliable database will be established. Any money flow can be recorded and traced , making money laundering, tax evasion and other behaviors exposed to supervision.

After the promotion of digital currency , society, enterprises and individuals are more inclined to use digital currency due to its convenience . The establishment of a digital currency issuance and circulation environment will help further improve China's payment system and enhance clearing efficiency.

At present, there are still some problems in the issuance of digital currency in China : First, digital currency and blockchain technology are not yet developed. So far, blockchain technology has occupied too many resources , and both computing resources and storage resources cannot cope with the current transaction scale. Second, it is difficult to grasp the balance between protecting personal privacy and combating illegal and criminal activities. The "traceability" and "traceability" of digital currency can improve the transparency of economic transaction activities. However, when encountering illegal and criminal problems such as money laundering and tax evasion, it is necessary to take necessary verification measures to search for criminal evidence by obtaining a large amount of user information. Therefore , combating illegal and criminal activities while protecting user information will become a hot topic of social debate. Third, the regulatory model faces greater challenges. With the application and popularization of mobile payment and "Internet + " technology , more currencies have begun to "break away" from the traditional financial system , and the impact of Internet technology on the regulatory model in the currency field has become more and more obvious. At present, the scale of China's third-party payment and Internet financial markets has exceeded 10 trillion , and the difficulty of supervision is increasing.

China's issuance of digital currency should start from the following aspects :

Continue to expand the application of blockchain technology. Give full play to the advantages of blockchain technology , use various terminals that are dispersed and involved in transactions to form a data chain , and multiple data centers participate in processing , making the entire transaction data more secure and reliable.

Accelerate information protection legislation. Enterprises that are not conducive to the collection and safe storage of citizen information should be held accountable , and heavy penalties should be imposed on those who illegally obtain and resell user information. Only by forming a strong deterrent can the reselling and leaking of user information be effectively curbed , thereby protecting the legitimate rights and interests of users and promoting the sustainable and healthy development of related industries.

Implement a multi-faceted and all-round regulatory system. Information interconnection is the foundation of the development of the times . Whether it is cloud computing , big data or the Internet , information drives the development of diversification, intelligence and specialization. Therefore , the financial regulatory system must adapt to these characteristics , with a wider scope, deeper levels and faster frequency of supervision , in order to better help the comprehensive realization of inclusive finance.