The central bank's digital currency can be said to be a new thing, but it is still a kind of currency in essence.
The existence of money has already undergone evolution: one is the change in the connotation of currency, which can be understood as the support of currency value; the other is the change in currency form, which can be understood as the mode of currency circulation—and both of these changes revolve around a core, then is technology.
"Central Bank Digital Currency" In-depth Report Series Part Two
"Technology is the key factor for the progress of productivity and the leading driving force for social development. As a social relationship, currency is no exception. Its previous evolution and connotation expansion have been profoundly affected by scientific and technological progress." China Securities Regulatory Commission Technology Supervision Bureau Yao Qian, director and former director of the Digital Currency Research Institute of the People's Bank of China, wrote in "Preliminary Exploration of Digital Currency" (hereinafter referred to as "Preliminary Exploration").
If you want to understand the attributes and characteristics of the central bank's digital currency, you must restore the basic steps. First, briefly review the changes in the history of currency and understand the basic characteristics of currency.
From the scientific and technological level, look at the similarities and differences between the central bank's digital currency and past currencies and electronic payment methods, and understand the technological progress brought about by it.
According to the Bank for International Settlements, 86% of the world's central banks are researching digital currencies.
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Chen Fengxiang, a visiting professor at the City University of Hong Kong, pointed out that during the Song Dynasty, China was a world power, so it could issue banknotes with national credit.
The value support of the central bank's digital currency is also national credit.
(Photo by He Baijia)
Central bank digital currency series reports:
Central bank digital currency. 1｜ CBDC becomes the focus of the Winter Olympics, how Hong Kong finance prepares for the technological revolution
Central bank digital currency. 2｜One Coin with N Sides: Perspective of Innovation from the Change and Unchangeability of Currency Development
Central bank digital currency. 3｜Retail CBDC: National R&D leads the world, Hong Kong is still on paper
Central bank digital currency. 4｜Wholesale CBDC: the key to Hong Kong’s transformation into a digital financial center
For details, please read the in-depth report of the 300th issue of "Hong Kong 01" electronic weekly published on January 17, 2022 "
Central Bank's Digital Currency Becomes the Focus of the Winter Olympics How Hong Kong Finance Prepares for the Technological Revolution?
".
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