Huang Qifan, vice chairman of the China Center for International Economic Exchange, said at the first Bund Financial Summit in Shanghai in 2019 that the people's Bank of China will become the first country to compete for the central bank's digital currency. The new CBDC will help weaken the yuan's reliance on SWIFT and CHIPS payment systems in cross-border transactions.
in conclusion, that DCEP is not only able to achieve all the function of the world currency dollar, but also save the issuance of funds, more accurately calculate the rate of inflation and other macroeconomic indicators, and better contain illegal activities such as money-laundering, terrorist financing and the like, A more convenient exchange of exchange in the global context.
At present, the digital money introduced by the central bank of our country is a brand-new encrypted electronic money system based on block chain technology. The DCEP will adopt a double-layer operation system, that is, the People's Bank of China first converts the DCEP to the bank or other financial institution, and then it is converted to the public by the institutions. And the central bank's global currency was already in preparation in 2014.
On July 17, Marcus, head of Libra, said at a hearing on the Libra coin that the "I believe that if the United States does not lead to innovation in the digital currency and payment, others will do so, especially in China."
It is important to note that the design of DCEP began in 2014, well before the 2019, when the Libra currency was proposed. DCEP is the result of years of research by the Central Bank of China in the field of digital currency. This paper reviews the major events of digital money in China: in 2014, the central bank set up a special research group on legal digital money; in 2016, it set up a digital money research institute on the basis of the original group; in June 2018, it set up Shenzhen Financial Technology Co., Ltd.; in August 2019, the central government sent a letter to launch a pilot study on digital money and mobile payment in Shenzhen. Information Center to celebrate the 70th Anniversary of the founding of the people's Republic of China At the first news conference, Yi Gang, governor of the people's Bank of China, said: the central bank's digital currency will replace some of the cash, which is enough to show that China has been at the forefront of science and technology finance in the field of digital currency research. As a Chinese, it is full of pride at the moment.
It can be assumed that the Libra coin is fully supported by the Government of the United States, and the Libra coin association is determined to be administered by several large companies in the United States, which is not contained in a package of reserve currencies that are endorsed by the libra currency credit and is not more than 50 per cent or more. It is believed that the DCEP will be on-line quickly, through the issuance of digital currency, to promote the internationalization of the RMB, and to seize the high-level of the "New World Currency". The top form of economic warfare is the currency war, the first-mover advantage of China, how can it be easy to make the lead, lose at the starting point.
He said it was a little late after all, after all, the central bank of China started the innovation in the field of science and technology in 2014. Today, the digital currency and mobile payment technology has been the world's leading; the DCEP is more qualified and more mature than Libra's online operating conditions. The reason for not coming online is that the DCEP stands on the top of the world in a new world currency only after saving power and waiting for economic power to ask the world's first.
In August 2019, the central government issued a letter in Shenzhen to promote RMB internationalization and digital currency demonstration area. Perhaps this is the final exercise of DCEP as a "new world currency": find problems in the trial, solve hidden dangers, and ensure that DCEP digital money can be released, visible, and controlled in circulation as a world currency.
Compared with DCEP and Facebook, we can find that they are very similar in security, architecture, concept and so on. The difference is that while DCEP retains the advantages of Libra, DCEP gives an almost perfect answer to the design defects that Libra coins cannot become world currencies.
Mu Changchun, director of the central bank's digital money research institute, said: ""The central bank digital currency adopts a double-layer operation system. The so-called double-layer operation system refers to the two-layer operation system of the central bank of people and the commercial bank."
Huang Qifan believes that for sovereign countries, the best way to exercise the right of issuance by currency countries is for the government and central banks to issue sovereign digital currency. In the process of issuing sovereign digital currency by central banks around the world, in addition to improving convenience and security, it is necessary to formulate a new rule so that digital money can be linked to sovereign credit, establish an appropriate proportional relationship with national GDP, fiscal revenue and gold reserves, and curb the situation of indiscriminate currency through a certain mechanism.
(picture source:搜狗图片)
While Facebook issued libra Libra, the encrypted currency, has become the focus of global financial markets on the Internet, the digital currency DCEP, created by the people's Bank of China, has officially moved from behind the scenes to Taiwan. Comparing Libra's currency with DCEP, China's proposed central bank digital currency, is this China's "new world currency" for the world's economies?
