Digital currency is featured in the People's Daily Overseas Edition. Experts at home and abroad are optimistic about the following points

Digital Chain Observation: On November 30, the Overseas Edition of People's Daily published an article titled "The Prospects for the Development of Digital Currency Are Promising", which quoted the views and expectations of four domestic and foreign digital economy experts on digital currency.

These views come from the "Finance 2021 Annual Meeting" hosted by "Finance" magazine, and the application and development of digital currency received special attention at this meeting.

Experts believe that the benefits of digital currency are generally as follows:

1. Reducing costs and increasing efficiency have brought new changes to currency circulation

Liu Xiaochun, deputy director of the Shanghai New Finance Research Institute, said that due to the development of the digital economy and the changes in living and consumption habits that follow, the application of digital currency will bring some new changes to currency circulation, such as faster currency circulation and improved social efficiency. At the same time, digital currency may also reduce the cost of currency issuance and management.

Li Lihui, head of the blockchain working group of the China Internet Finance Association, also agrees with the view that digital currency can save costs. He believes that digital currency can not only save costs, but also prevent counterfeit currency and enhance the inclusive nature of the payment system.

2. Traceability makes the flow of funds more transparent

Li Lihui also said, "my country has the largest population in the world, and the size of its payment market is also the largest in the world. When issuing legal digital currency in such a market, it is necessary to ensure the reliability and security of digital currency tools."

The natural traceability of digital currency allows it to grasp structural currency circulation data in real time, and thus to regulate the total amount of money supply with particular precision; at the same time, information on capital flows can be tracked throughout the entire process, which is conducive to anti-corruption, anti-money laundering, anti-terrorist financing, and anti-tax evasion.

3. Break through limitations and drive financial reform from payment

The most prominent feature of digital currency in today's financial world is its technological breakthrough, but in terms of the changes it brings, digital currency still has greater room for development.

Cai Weide, a Yangtze River Chair Professor at Tsinghua University, said that digital currency has ushered in a major change in technology and the market. Currently, many blockchain systems cannot be called digital currency systems because they are not transactional or regulatory. Cai Weide said that only by separating the payment and settlement of digital currency can industrialization be truly realized. In the future, a digital currency settlement system that complies with modern laws and regulations and modern financial transaction principles will lead the reform of the entire financial system starting from payment, thereby driving reforms in other areas.

However, from the perspective of the domestic market, attention and promotion of digital currency are mainly focused on CBDC. Especially from the policy level, my country is very determined to research and promote CBDC.

The recently released "Proposal on the 14th Five-Year Plan and Long-Term Goals for 2035" clearly pointed out: "Improve the monetary supply regulation mechanism and steadily advance the research and development of digital currency." General Secretary Xi Jinping also emphasized: "Actively participate in the formulation of international rules such as digital currency and digital tax to create new competitive advantages."

Today, 80% of the world’s central banks have started research and development of digital currencies. my country’s People’s Bank of China officially launched research on legal digital currency in 2014, becoming the earliest central bank to conduct digital currency research and experiments.

As the big river rises, the small rivers also fill up. For the entire digital economy, the increasing attention and accelerated progress of digital currency is good news for the development of the entire industry. The continuous innovation of policies and technologies will make the industry and market more and more standardized. Under the great waves, the value of projects that are truly worth investing in will become more and more prominent.