DC/EP Chinese aims to modify the international monetary system which is based on the US dollar standard
According to the report entitled “China Accelerates the Implementation of Digital Currency”, the digital currency issued by the People’s Bank of China – DC/EP Chinese – has traceability and can effectively combat illegal criminal activities such as money laundering. The widespread implementation of digital currency will facilitate people’s daily financial transactions. People do not have to go to the bank to queue up in person to complete the transaction.
China has opened up the country’s legal digital currency DC/EP Chinese
At the end of April this year, the People’s Bank of China announced that the digital currency would be closed in Shenzhen, Suzhou, Xiongan, Chengdu, and the future Winter Olympics scene. Pilot test. Leading the world in promoting digital currency, China has made leaps and bounds in this technology.
The central bank’s digital currency will shake the dollar’s hegemony in the international settlement system. China’s issuance of legal digital currency is an expression of determination and innovation.
2)#China DCEP aims to modify the international monetary system which is based on the US dollar standard. “When the US economy has problems, the monetary policy of the Fed will have a joint impact on other countries.#Bitcoin #Crypto https://t.co/3KMmh5CIi6
— Alice Crypto (@AliceolaCrypto) June 11, 2020
In late April, the relevant person in charge of the Digital Currency Research Institute of the People’s Bank of China said that the current research and development of digital RMB is steadily advanced. First, internal closed pilot tests will be carried out in Shenzhen, Suzhou, Xiongan New District, Chengdu, and the future Dongao scene to continuously Optimize and perfect functions.
Besides, the DC/EP Chinese system completes the top-level design, standard formulation, function development, joint debugging testing, etc. under the premise of double-layer operation, currency substitution in circulation, and controllable anonymity, and follows steady, safe, controllable, and innovative And practical principles.
The central bank’s digital currency has the advantages of not being easily copied, low issuance costs, and convenient transactions. It can form a complementary relationship with the sovereign currency.
While the central bank’s digital currency improves the efficiency of currency operation monitoring and enriches monetary policy tools, it also provides new directions for the development of the international monetary system.
Now, the international monetary system is centered on the US dollar standard, and many countries use the US dollar as a transaction currency and reserve currency. Often when the US economy has problems, the Fed’s monetary policy adjustments will have a joint impact on other countries. In the future, the digital currency can be used as a supplement to restrict the excessively arbitrary fluctuations of the US dollar and reduce the occurrence of a global disaster caused by the USD crisis.
At present, China is in the stage of accelerated research and development in terms of digital currency, and there are still a series of problems to be solved at the technical level. In the future, as the acceptance of the central bank’s digital currency increases and its credibility increases, the digital currency should establish an appropriate proportional relationship with the sovereign currency and gold reserves.
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