Can digital currency replace the traditional currency in the future?

The following are the original words of Zhou Xiaochuan, governor of the central bank: digital currency will gradually replace the traditional currency in the future.

It is impossible to tell the timetable of digital currency yet. China has a large population. For example, it takes several months for a small country to change a version of RMB, while it takes about ten years for China. Therefore, the relationship between digital currency and cash will be parallel and gradually replaced for a long time. The transaction cost of cash will gradually increase in the later period. For example, in the past, banks were asked to count a large number of coins, and they did not complete the work without charge. Later, they may need to be recharged. With the incentive mechanism, people will naturally use digital currency more, but it will be saved in the long run.

The issuance of digital currency by the central bank is also inspired by cryptocurrencies such as Bitcoin and Litecoin. The model of digital currency and physical assets in European crowdfunding also draws on the experience of Bitcoin.