bouske wholesale jewelry What is digital currency, why does the central bank issue digital currencies

jewelry making materials wholesale in coimbatore Digital currency is an alternative currency in the form of electronic currency, that is, a virtual currency based on node networks and digital plus encryption algorithms.
The digital currency design of the central bank at this stage, paying attention to M0 replacement, mainly to solve the two major problems existing in actual applications of cash and electronic payment: First, paper banknotes and coins are easy to fals anonymous, and there are money laundering and horror. The risk of financing; the second is the electronic payment based on the existing bank account coupling model, which cannot meet the needs of anonymous payment.
D digital currency has the following three characteristics:
. Low transaction costs
Compared with traditional bank transfers and remittances, digital currency transactions do not need to pay for third parties. The cost is lower, especially for cross -border payment to provide high handling fees to the payment service provider.
. The transaction speed is fast
The blockchain technology used in digital currency has the characteristics of decentralization. It does not require any centralized institution similar to a clearing center to process data. The transaction processing speed is faster.
. High anonymity
In addition to the real -object currency that can achieve point -to -point transactions that have no intermediary participation, one of the advantages of digital currency compared to other electronic payment methods is to support remote point -to -point payment. No credible third parties are needed as intermediaries. The transaction can complete the transaction without trusting each other without trusting each other. Therefore, they have higher anonymity and can protect traders' privacy.
[Extended information]
bdc, the full name is Central Bank Digital, translated as a central bank digital currency.
The Bank of England Bank of England gave this definition in its research report on CBDC: The central bank's digital currency is the electronic form of the central bank's currency. Families and enterprises can use it for payment and storage value.
The Chinese version of CBDC is described as a digital RMB, which is issued by the People's Bank of China. The designated operating institution participates in operation and exchanged it to the public. Based on the broad account system, it supports the loosening function of the bank account, with paper banknotes and coins. Equivalent and controllable anonymous payment tools with value characteristics and legal repayment.
. The DC/EP we call is the Chinese version of the central bank's digital currency, translated as "digital currency and electronic payment tools".
The authoritative international organizations: International Organization and Market Infrastructure Committee (CPMI) and Payment and Market Infrastructure Committee jointly conducted two questionnaires in 2018 and 2019. The content of the questionnaire includes the work progress of the central banks of various countries, the motivation to study digital currency, and the possibility of issuing digital currencies. 70%of the central banks have stated that they are participating in (maybe to participate) digital currencies.