What impact will the introduction of the digital currency (DCEP) by the central bank have on the whole society?

As early as 20 14, the central bank set up the digital currency research group and started the closed-loop test on 20 19. Under the impact of the planned issuance of Bitcoin and Libra, according to the statistics of the Bank for International Settlements, 10% of the central banks in the world are considering issuing digital currency. China's DCEP belongs to the legal encryption digital currency, which changes the banknotes based on national credit into encrypted digital string forms, and strives to partially replace M0. (About M0, M 1, M2, and what everyone has been saying about printing money and releasing water, you can read the article in the link if you are interested. It is different from encrypting digital currency BTC and ETH, and it is also different from electronic money.

Digital currency's Influence on Monetary Policy

DCEP is centered on the central bank and remains centralized. Under the current two-tier management system of "central bank-commercial bank", the original monetary transmission policy has not changed fundamentally. The difference is that a new, safer and more efficient operation framework of "one currency, two warehouses and three centers" has been built.

Conception of legal tender prototype in China

First, the difference with electronic payment

Electronic money belongs to M2 in the currency circulation system. Including bank cards, online banking and so on. , and third-party payment (Alipay, etc. ) developed in recent years. DCEP belongs to M0, which is the debt of the central bank and has unlimited legal compensation.

In China, M 1 and M2 are usually based on the account system of commercial banks, and have been basically electronic. This DCEP is based on the central bank account system and should be a supplementary form of electronic payment.

DCEP does not need to bind bank cards. Both Alipay and WeChat we use need to be bound with bank cards, which means that we only borrow payment forms such as Alipay, and the settlement and transfer of funds still need to be completed in traditional bank accounts. DCEP integrates transaction and settlement, which can save background clearing, settlement and other links, thus reducing the transaction cost of the whole society and improving transaction efficiency.

Second, the difference with cash.

The essential attribute of DCEP is the same as cash. The main improvement is that it is more portable, traceable and controllable even if it is anonymous. There are risks such as forgery, money laundering and bribery in cash. DCEP is technically unforgeable, programmable and traceable, and can also be divided into smaller monetary units. Compared with paper money, DCEP is easier to be managed by the state and fairer and safer.

Paper money is also more likely to spread bacteria.

Third, the impact on society.

We now use third-party payment, pos credit card and so on. Make a large transfer transaction or withdraw the handling fee that needs to be paid now. At present, the concept of DCEP is to eliminate the intermediate trading medium like paper money, so that individuals or units have no extra expenses to pay.

At present, the transactions of ordinary people will not change much. Third-party payment must still be the mainstream way in a certain period of time. DCEP may have an impact on some large and medium-sized transactions.

For the whole society or industry, the construction of financial infrastructure may usher in great development in a short period of time. For good bank IT service providers, chip manufacturers and big data technology manufacturers.

It is possible to continuously develop brand-new application scenarios and application facilities for a long time.