The characteristics of numbers: 1, instead of M0.
From the perspective of issuing channels, issuance is equal to the sum of M0 and cash on hand, and digital RMB is replaced based on this level. However, from the perspective of cash demand theory and practical logic, digital RMB and cash will coexist more in the future, rather than absolute replacement.
There are several reasons why the digital yuan is replacing M0.
In the digital era, digital renminbi, digital currency is indeed a major development trend.
2. Double-layer delivery mode.
Similar to the traditional two-tier cash delivery model, the digital yuan will require the commercial banking system to pay 100 percent reserves to the central bank.
3. Controlled anonymity.
Cash is a zero-coupon anonymous liability method, and the anonymity of central bank digital currency cannot be completely replicated at present. Of course, this is one of the main alternative logics of central bank digital currency, which is to cancel the anonymity of cash assets to the greatest extent, or balance the relationship between control and anonymity.
From the current design, the digital Yuan can achieve controlled anonymity through hierarchical quotas and sub-wallets.
4. It is fundamentally different from third-party payment.
He mentioned wechat and Alipay as “financial infrastructure” and “wallets”.
However, digital RMB is a payment tool and the content of wallet. There are essential differences between digital RMB and third-party payment.
5. It combines the advantages of cash currency and digital currency.
Digital RMB itself is a cash currency, but it also has the characteristics of digitalization.
6. Digital RMB is a currency issued by the central bank and has the same effect as paper cash.
For example, when you pay at the merchant, the merchant can refuse to accept payment methods such as wechat Pay, but not digital yuan.
Because it is illegal to reject RMB.
7. Small amounts of digital RMB can be paid anonymously, while large amounts need to be verified.
Increased the security of cash currency.
8. Digital RMB can be paid double offline;
9. The digital RMB is issued by the central bank, which is the same as printing paper cash. Every yuan issued adds one yuan to the market.
10. The most important function is to replace cash.
The outlook for the U.S. economy was downgraded, U.S. stocks suffered their worst disaster in nearly two years and oil prices plunged nearly 4 percent to a peak.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
