There are three forms of currency: cash currency, electronic currency, digital currency

　　Generally speaking, currency has three manifestations: cash currency, electronic currency, and digital currency. Correspondingly, payment can be divided into cash payment, electronic payment and digital payment. These three payment methods can coexist, but they are alternative and can be transformed into each other. Each has its own characteristics, advantages and disadvantages, and provides diversified payment options for market entities and the public.
　　Let's look at cash currency first. Cash currency has the nature of legal compensation, emergency, privacy, ritual, communicative, and collection. The so-called legal indemnity refers to the legal tender of a country or economy in accordance with relevant laws and regulations, which can be used to pay all public and private debts in the territory, and no unit or individual may refuse to accept it; the so-called contingency refers to other methods Under limited circumstances, it can be used for payment and settlement in extreme or special situations; the so-called privacy, that is, it is non-traceable and irreversible, and can better protect the privacy of payment transactions; the so-called ritual, that is, cash can be used as traditional communication and etiquette The so-called communicative nature, that is, face-to-face cash transactions can produce a communicative behavior and expand communication opportunities; the so-called collectibility, that is, cash banknotes and coins contain not only their own value, but also Many elements, including politics, history, culture, society, economy and technology, printing, anti-counterfeiting and other technologies , are the collection objects of coin collectors. Of course, cash payment also has its limitations. It is inconvenient and insecure to carry, not easy to find change, and there is a risk of counterfeit currency and the spread of germs.
　　Then look at electronic money. Electronic money came into being with the development of information technology. It generally refers to bank card payment, online payment, mobile payment, such as the debit and credit card we usually use, online payment, cloud flash payment , WeChat payment, etc. The account system is a tightly coupled relationship. Tight coupling, originally a physics term, was later used in economics and finance to mean that two things are closely related. Electronic payment can only be realized by relying on network information. Electronic payment has the characteristics of convenience, economy, reversibility, and scale .The so-called convenience means that it is more convenient and efficient than physical cash payment; the so-called economy means that its production and use transaction costs are lower; the so-called reversibility means that there are transaction traces and records, which can be inspected and traced throughout the entire process, and It is convenient to use big data for analysis and research; the so-called scale can be used for large-amount fund payment and settlement. Of course , electronic payment information is easy to be used unreasonably by commercial organizations and cannot protect privacy and consumer rights.
　　Finally, look at digital currencies. Digital currency is a new currency form in the era of digital economy, which is divided into central bank legal digital currency and private digital currency . The central bank's legal digital currency has the characteristics of legal compensation, reversibility, convenience, safety, economy, and strategy. In addition to some features of cash currency and electronic currency, it absorbs the advantages of other forms of payment, while avoiding some disadvantages, and is relatively safe . It is anonymous and controllable and can effectively protect personal privacy. Through the use of blockchain technology and encryption technology, it has strong anti-counterfeiting and reversibility. In addition, the central bank’s launch of digital currency research and development is also based on a strategic consideration, which will help to seize the first opportunity and seize the commanding heights of the digital economy, help deal with the risks and challenges of private digital currencies, and help better participate in international financial governance. . Of course, as a new thing, the development of digital currency requires continuous exploration and practical testing . Its impact on the future economy and finance is also a new topic that deserves great attention.
　　Modern society, especially China's economic development is diversified , unbalanced, and inadequate. The coexistence of the three currency forms is long-term, and each has its own value and significance. We should fully realize this, and better care and meet the diverse needs of different markets , different regions, and different groups.