Central bank digital currency with blockchain

A. Whether the central bank’s digital currency can be seamlessly connected to non-blockchains

not yet
Whether the central bank’s digital currency has an impact on monetary policy and what kind of impact it will bring depends on the microscopic level Due to the specific design of the business attributes of the central bank’s digital currency, it is subject to the financial system structure in the mesoscopic view, and depends on the monetary and financial environment in the macroscopic view. From the perspective of long-term evolution, the central bank currency in the digital age should adapt to the structural changes of the digital economy, while meeting the functional requirements of the central bank for monetary policy and financial stability. The introduction of digital currency can enrich the toolbox of monetary policy operation. The digital currency interest rate may become an important monetary policy tool in the future, and under the given conditions, it can improve the efficiency of monetary policy transmission, enhance the sensitivity of monetary policy transmission, and further boost monetary policy regulation. The transformation of the framework from “quantity type” to “price type”.

B. What is the relationship between blockchain and digital currency

Digital currency is an application of blockchain.
Blockchain is the core supporting technology of the digital cryptocurrency system represented by Bitcoin. The core advantage of blockchain technology is decentralization. It can realize point-to-point transactions based on decentralized credit in a distributed system where nodes do not need to trust each other by using data encryption, timestamps, distributed consensus and economic incentives. Coordination and collaboration, thus providing solutions to the problems of high cost, inefficiency and insecure data storage that are common in centralized institutions.
The application fields of blockchain include digital currency, token, finance, anti-counterfeiting traceability, privacy protection, supply chain, entertainment, etc. With the popularity of blockchain and Bitcoin, many related top domain names have been registered , had a relatively large impact on the domain name industry.
Taking the tourism industry as an example, blockchain applications are mainly focused on travel travel, travel community reviews, digital identity management, credit consumption management, tracking pilots’ professional certificates and qualifications, hotel and airline loyalty programs, bookings Management, consumption points management, these application areas. In addition, blockchain also has applications in finance, games, entertainment and other fields.

C. What is the relationship between blockchain and digital RMB

Blockchain refers to a chain formed by a series of data blocks (ie blocks) connected in the following ways: The N+1th block contains the hash value of the Nth block. Moreover, the chain of such data blocks is simultaneously stored and maintained by widely distributed and huge number of server nodes, and each server node has a complete copy of the blockchain.
Digital currency is another form of existence and circulation of legal tender. Compared with current paper money and coins, it exists in a digital form. The legal existence of digital currency is legal, and it was born based on blockchain technology.
Blockchain is the underlying technology of digital currency issuance, which is also the most direct relationship between the two, and they can exist independently of each other.
For reference.

D. Is the digital renminbi related to the blockchain?

Is it related? does not matter.
The essential characteristics of digital currency are. The first decentralization. That is, you give me money, you are a point, I am a point. The bank is the center. Responsible for transfers and billing. Blockchain has no center. Direct peer-to-peer transactions.
The second is anonymity. The two parties trade through the Internet without knowing who the other party is.
The third immutable ledger. Because the consensus mechanism POW obtains the accounting right to form a block. It’s you and me trading again. You can only find that the transaction is recorded in a block, but it cannot be tampered with.

The digital yuan is managed by the center. The People’s Bank. Just using blockchain technology. It is more accurate to say electronic RMB.

E. What is the relationship between blockchain and digital currency

Blockchain refers to a chain formed by a series of data blocks (ie blocks) connected by : The N+1th block contains the hash value of the Nth block. Moreover, the chain of such data blocks is simultaneously stored and maintained by widely distributed and huge number of server nodes, and each server node has a complete copy of the blockchain. Digital currency is another form of existence and circulation of legal tender. Compared with current paper money and coins, it exists in a digital form. The legal existence of digital currency is legal, and it was born based on blockchain technology. Blockchain is the underlying technology of digital currency issuance, which is also the most direct relationship between the two, and they can exist independently of each other.
The content of this article comes from: China Law Press “Financial Code of the People’s Republic of China: Application Edition”

F. The relationship between digital currency and blockchain

1. District Blockchain and digital currency complement each other and are inseparable. Blockchain is one of the means of digital currency circulation.
2. Blockchain is the theoretical basis of digital currency, and digital currency is aEstablished on the basis of blockchain technology, blockchain has certain guarantees for the security of digital currency, and digital currency is the most successful application of blockchain technology.
Extension information: 1. Digital currency is an unregulated, digital currency, usually issued and managed by developers, accepted and used by members of a specific virtual community. The European Banking Authority defines virtual currency as: a digital representation of value that is not issued by a central bank or authority, nor linked to fiat currency, but which, because it is accepted by the public, can be used as a means of payment and can also be transferred, stored or traded in electronic form .
2. Digital currency can be considered as a virtual currency based on node network and digital encryption algorithm. The core characteristics of digital currency mainly reflect three aspects: ①Due to some open algorithms, digital currency has no issuer, so no one or institution can control its issuance; ②Because the number of algorithm solutions is determined, the digital currency The total amount of currency is fixed, which fundamentally eliminates the possibility of inflation caused by virtual currency indiscriminate; ③ Since the transaction process requires the approval of each node in the network, the transaction process of digital currency is safe enough.
3. The blockchain shared value system was first imitated by many cryptocurrencies, and improvements were made in proof of work and algorithms, such as the use of proof of stake and SCrypt algorithms. Subsequently, the blockchain ecosystem continued to evolve around the world, with the emergence of initial coin offerings (ICOs); smart contract blockchain Ethereum; asset tokenized sharing economy that “lights on ownership and focuses on usage rights”; and blockchain nations. People are using this shared value system to develop decentralized computer programs in all walks of life, and to build decentralized autonomous organizations and decentralized autonomous communities around the world.

G. What is the relationship between digital currency and blockchain technology

The two complement each other, chain and currency are actually inseparable, blockchain technology has spawned digital currency, Digital currency expands the application of blockchain. At present, the most successful digital currency is bitcoin. If you want to invest, you can open an account on the OKEx bitcoin exchange, and you can buy it with WeChat. If you are not clear, please feel free to ask.

H. What is the relationship between blockchain and digital renminbi

Digital renminbi is often used as an encrypted currency bit using blockchain technology. Coins, Ethereum, etc.

Digital renminbi draws on blockchain technology, but as legal tender, digital renminbi has the characteristics of centralization. Executives from major European central banks have said that the issuance of central bank digital currencies does not actually require the use of blockchain technology. The core elements of the digital renminbi system framework are “one currency, two banks, and three centers”, and the technologies used in the use process include NFC and distributed ledger technology.

The digital renminbi has the same characteristics as the blockchain technology, which are traceability and non-tampering, but the digital renminbi only draws on the blockchain technology. As legal tender, one of the main features of digital renminbi is a centralized management model, and one of the core features of blockchain is decentralization. Previously, countries that issued digital currencies relying on blockchain technology included Iran, Ecuador, Uruguay, Senegal, etc., but these digital currencies did not become popular.

In September 2020, executives of major European central banks said that if central banks around the world want to issue central bank digital currencies, they do not need to use blockchain technology. In the case of central bank digital currencies , the central bank provides “trust”, so there is no need to use blockchain technology when the central bank steps in. In the financial field, blockchain technology has been experimentally or small-scale applied in digital currency, payment and settlement, digital bills, and bank credit management. The core elements of the digital renminbi system framework are “one coin, two banks, and three centers”. According to the elaboration of the “Prototype Concept of China’s Legal Digital Currency”, the core elements of the digital renminbi system framework are “one coin, two banks, and three centers”.

Among them, “one currency” refers to the central bank’s digital currency; “two libraries” refer to the digital currency issuance library (the database that stores the central bank’s digital currency issuance fund) and the digital currency bank library (commercial banks store the central bank’s digital currency The “three centers” refer to the certification center (responsible for identity information management), the registration center (responsible for digital currency ownership registration) and the big data distribution center (responsible for anti-money laundering, payment behavior analysis, etc.)

I. What is the relationship between blockchain and digital RMB

Differences:
1. Blockchain and digital currency complement each other and are inseparable. Blockchain is one of the means of digital currency circulation .
2. Blockchain is the theoretical basis of digital currency. Digital currency is established on the basis of blockchain technology. Blockchain guarantees the security of digital currency. At the same time, digital currency is a block chain. chain technology�Most successful application.
Since the concept of “digital renminbi” was proposed, digital renminbi has often been compared with cryptocurrencies such as Bitcoin and Ethereum that use blockchain technology. So let’s first figure out what is digital renminbi?
Digital RMB (Digital RMB) is a digital form of legal tender issued by the People’s Bank of China. It is operated by designated operating agencies and exchanged for the public. Based on a broad account system, it supports the loose coupling function of bank accounts and is compatible with paper Banknotes and coins are equivalent, have value characteristics and legal compensation, and support controllable anonymity.
The concept of digital renminbi has two key points. One is that digital renminbi is legal tender in digital form; the other point is that it is equivalent to banknotes and coins. coin.
But in fact, digital renminbi only draws on blockchain technology, but as legal tender, digital renminbi has the characteristics of centralization. Executives from major European central banks have said that the issuance of central bank digital currencies does not actually require the use of blockchain technology. The core elements of the digital renminbi system framework are “one currency, two banks, and three centers”, and the technologies used in the use process include NFC and distributed ledger technology.
02 What is blockchain technology?
In a broad sense, blockchain technology actually uses fast-chain data structures to verify and store data, use distributed node consensus algorithms to generate and update data, and use cryptography to ensure data transmission and storage. Secure access, a new distributed infrastructure and computing method for programming and manipulating data using smart contracts composed of automated script code.
03 The digital renminbi just draws on the technology of the blockchain
Digital renminbi has the same characteristics as the blockchain technology, such as traceability and immutability. As a legal currency issued by the state, the most important feature of the digital renminbi is the “centralized management model”, and one of the core features of the blockchain is “decentralization”.
Previously, many countries have issued digital currencies relying on blockchain technology, such as Uruguay, Iran, Senegal, etc., but none of them have become popular.
Executives of major European central banks said in September 2020: If central banks around the world want to issue digital currencies, they do not actually need to use blockchain technology. Central banks provide central bank digital currencies. “Trust”, so after the central bank steps in, there is no need to use blockchain technology anymore.
In the financial field, blockchain technology has been experimentally and small-scale applications in digital currency, payment settlement, digital bills, etc.
04 “One Coin, Two Repositories, Three Centers”
As mentioned earlier, the core elements of the digital RMB system framework are “one coin, two repositories, and three centers”. Two repositories, three centers”. The “one currency” here actually refers to the central bank’s digital currency; “two libraries” refer to the digital currency issuance library (the database that stores the central bank’s digital currency issuance fund) and the digital currency bank library (the database for commercial banks to store the central bank’s digital currency); The “three centers” refer to the certification center (responsible for identity information management), the registration center (responsible for digital currency ownership registration) and the big data distribution center (responsible for anti-money laundering, payment behavior analysis, etc.).

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