Abstract: The Chinese government since 2014, had begun the study of digital currency, in October 2019, the China International Economic Exchange Center vice president Huang Qifan explained, the central bank will launch a digital currency DCEP based block chain technology. This issue will have much impact on the future of digital currency? Why has "old Yan Wang Xietang ago, flying into the homes of ordinary people" in the electronic payment of the moment, the central bank still want to publish their own digital currency? Benpian According to information and personal views, do some simple exposition.
Because of personal ability, lack of knowledge exists, there must be less than or text mistakes, also invited criticism.
table of Contents
The practical significance 2.DCEP
2.1 In order to achieve better financial regulation
2.2 In order to promote the internationalization of RMB
1 Introduction
2020 epidemic, we saw ten days in the history of a rare four "blown", once the Dow dropping to 18,000 points, so that people can not help but exclaim: long live to see. Of course, the Internet, there have been a lot of "scripts."
Of course, looking at the piece is very comfortable, but we can not deny that, US stocks plunged for the United States is definitely not a good thing. According Xindu District People's Government of the People's Daily official website 2020/1/6 transfer data, as of the third quarter of 2019, foreign exchange reserves held by the world's economies central banks, accounting for RMB assets rose to 2.01%, the highest since the IMF October 2016 reported the highest level since the yuan reserve assets. The dollar remains the world's dominant reserve currency, IMF released data show that the proportion of dollar-denominated foreign exchange reserves of the total foreign exchange reserves had 2019 third quarter accounted for 61.78%. Therefore, the United States can be their own global crisis passed. It will also have a huge impact on the Chinese economy.
2020 March 23, the Fed announced the implementation of open-ended asset purchase program, open an unlimited amount of quantitative easing, that is, the week will purchase $ 75 billion debt and $ 50 billion in agency mortgage-backed securities every day, another begins wave "pull out wool" and "cut chives" operation. In fact, a number of countries, including China, has long been aware of this, but also the layout already begun the process of internationalization of the currency of their respective countries.
But we have to admit that, due to the move deep into the US financial sector, the foundation of the United States to challenge the international status of the RMB internationalization process has been greatly hampered, the internationalization of RMB Lu Yao Wait a minute. In 2008, Nakamoto published an article "Bitcoin: a peer to peer electronic cash system", since the beginning of the block chain technology into the horizon. Unexpected is that the Chinese Government has strongly advocated for the block chain technology. 2018, the Ministry of Industry and Information Technology issued a special "2018 China block chain industry White Paper", the Chinese government at all levels, from the central and local governments have strongly advocated landing in this technology. This makes us think: Why?
Of course, the Chinese government attention to the development of new technologies is one of the reasons. But more importantly, the technology for the internationalization of the yuan, it is likely to be a "magic weapon." 2018, either when China's central bank governor Zhou Xiaochuan publicly revealed to the media: "The People's Bank in more than three years ago organized a seminar related to digital currency, followed by the establishment of the Institute, and industry organizations are being distributed development", and confirmed the central bank is developing digital currency --DCEP.
The practical significance 2.DCEP
We know that China has now entered the "electronic payment" era, the public has been fully familiar with the "Alipay", the "micro-channel pay" and other electronic payments, the central bank again from the digital currency research DCEP what is the point of it? Do ants and the central bank to finance, micro-channel pay undercutting?
The answer of course is no. In my personal opinion, DCEP issued at least the following three reasons:
2.1 In order to achieve better financial regulation
May 24, 2019, silver Insurance Regulatory Commission announced that, in view of the serious credit risk of banks contractor, in order to protect the legitimate interests of depositors and other clients, take over for the contractor bank, and this is 20 years since taking over supervision of re-shot renovation of the bank. Similarly, at the end of 2019, cases of corruption as chairman of Prudential Bank has been opened two hijab. You can see, the central bank for the local banking and financial sector supervision are still many blind spots.
In other words, the outflow from the central bank's renminbi, a large part of the central bank can not monitor to its full flow, which also brought a lot of risk for the financial industry. In the current model, the central bank out of funds, you need to go through other banks by lending to the inflow into the market, while other banks may by some means makes some money from the central bank regulation, which will inevitably bring a great deal of uncertainty .
The block chain technology itself "tamper-proof" features just to meet the needs of financial supervision, in addition, the central bank can make electronic money directly to the personal and business accounts, making the cost and difficulty of intermediaries evil sharply. In simple terms, we are now saving, consumption and other data, if the central bank needs to monitor banks and other financial institutions, and electronic currency, the central bank can monitor directly to the specific flow of money. Of course, the currency issue will become relatively easy, eliminating the need to print money printing money.
2.2 In order to promote the internationalization of RMB
Currently there is a huge difficulty of cross-border transactions, international transfers in general need to go through Society for Worldwide Interbank Financial Telecommunication SWIFT to complete. SWIFT in the United States, that is, for the United States, mostly international transfer regulation to be. And transfer existing international criticism of many very place, such as: the process for too long, it normally takes about a week of each other in order to receive money transfer; the amount of the discount, SWIFT in this process need to charge more expensive fees actually received the amount sent is less than some.
Therefore, block chain technology is the most applicable scenario is a large cross-border transfers. Such as transfers between different countries, through bitcoins, not only to get rid of such a third party Swift, to prevent the disclosure of their own data, but also greatly reduce transaction time (theoretically Bitcoin transaction confirmation to complete only about 1h). But now the problem is that encryption and other Bitcoin currency is not subject to any government regulation, is also broke a lot of "Ray", such as embezzlement exchange, the exchange was attacked resulting in stolen money and other events. And these encryption currency and the share market value is small, and very little money compared to the mainstream.
The central bank is developing digital currency DCEP, according to public information that is based on block chain technology, is about to start a pilot in Shenzhen, Suzhou and other places in 2020. Digital currency is bound to make the birth process easier for other countries in the reserve yuan, and DCEP issue must be able to demonstrate China's strong scientific and technological capacity, enhance the people's confidence in the yuan.
3.DCEP problem to be solved
3.1 Performance issues
Currently, the most prominent is defective block chain system performance problems. Traditional centralized systems, banks can achieve the level of megabits per second throughput, and the current Bitcoin system can only handle 7 transactions per second Ethernet Square can handle only 20-30 transactions per second. For block chain system, although the increase in node makes the system safe, non-tamper resistance is improved, but the total for each additional node, more than is necessary to reach a consensus, bringing the decline in system performance.
DCEP to future-oriented user must be a large group, if DCEP goal is to be extended to the general public and foreign markets of Chinese society, it must take into account the massive consensus billions of users using the scale brought about reached, node status consistency, which is a total challenge.
3.2 Security issues
We know that any software system are bound to exist Bug. Nanjing University Professor Xu Jiafu who had come to my school, Xulao mentioned, in a system that only 1000 lines of code, but also there must be a Bug. Not to mention DCEP such a large software system, even more experienced front line of tests on the system, there must also did not identify the Bug.
Even if we think its safe Bitcoin system, in August 2010, he has also had a big burst of Bug. By an unknown hacker, using the number on the Bug in the 74638 block of thin air generated 184.467 billion Bitcoin (value overflow event) is designed with the Bitcoin system, the maximum amount should supply 21 million. If the attack is successful, it will inevitably lead to Bitcoin system was completely destroyed. Fortunately, at that time Bitcoin system administrator after detecting the prompt start of the bifurcation, corrected the bug.
Of course, this event Bitcoin system will eventually end with a better outcome, but the software system can not Bug in such a wonderful way to get around. The DAO Square Ethernet system as a result of events that ultimately no choice but to initiate a hard bifurcation, leading to community division, resulting in irreversible, irreparable damage. DCEP also bound to take into account these problems, add just enough protective measures.
Effects of the user 4. DCEP
For individuals, most people are already familiar with electronic payment, appear DCEP should not have much impact on the current personal business. Individual user savings, lending and other services should be basically the same as the original.
Commercial banks, DCEP will inevitably bring some impact. For example: the digital age, many businesses can complete online outlets under the bank line needs to be cut. Of course, DCEP makes it easier for the central bank monetary regulation, commercial banks will be difficult to bypass or without the knowledge of some central banks are prohibited lending service.
For the international market, there is basically not a country strongly advocated DCEP act as currency in circulation in the country, but there will be some national governments, and gradually get rid of dollar reserves in US dollar hegemony, in particular, open up infinite quantitative easing in the US dollar reserves earnings dilution background, select holdings have trust in the Chinese government's endorsement DCEP as foreign exchange reserves, thus promoting the internationalization of the RMB.
5. Postscript
Of course, we need to see clearly, to maintain the current US dollar hegemony as well as the powerful military, political and media power. The decline of the process of the rise of a great power and the other major powers, bound to be long and tortuous. DCEP issue, but China is making new weapons and find a breakthrough, but what specific measures and methods of RMB internationalization process, depending on the use of weapons or people to take.
Sino-US relations maintain "without splitting" Today, there DCEP, resulting in disruptive impact on the current financial status quo, but in the long run, it must be the symbolic significance of the event.
Disclaimer: This article does not constitute any 1 "currency speculation" suggestions! 2. This completely original, there is no plagiarism, reproduced please contact me if you want to get consent.
6. References:
1. the IMF latest data show - the proportion of the yuan's share of global foreign reserves highs
2. 2018 block chain China Industry White Paper
3. Zhou Xiaochuan: China's central bank is developing digital currency DCEP
4. 2020 DCEP is expected to launch four lines, three operators will participate DCEP
The digital currency is about to pilot the central bank legal ground, DCEP officially entered the life!
6. The use of thin air made Bug bit of 184.4 billion dollars, a hacker almost went out bitcoins
