The impact of the central bank's digital currency on the development of future block technology and the world economic system

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1. The emergence of central bank digital currency (CBDC)

CBDC, short for central bank digital currency, is an extension of the legal tender issued by the existing central bank.

It can be said that the central bank's digital currency has gradually emerged with the development of blockchain technology such as Bitcoin. The central bank's digital currency is endorsed by the central banks of various countries, that is, the government, and is the digital form of legal tender. In terms of value, it is assigned a corresponding value by the government, which is equivalent to cash.

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2. Development and use of CBDC

Since it is a central bank digital currency, the difference is that it is endorsed by governments of various countries and has extremely stable characteristics. This is an advantage, which is different from roller coaster valuations such as Bitcoin.

On the one hand, the central bank's digital currency will coexist with banknotes for a certain period of time, and will also be popularized with the development of technology to facilitate people's work and life and promote economic development. For example, the use of digital currency in trade in various countries will, to a certain extent, reduce the extraordinary loss of currency exchange between central banks due to the rate of exchange. Due to its easy transaction and other features, it will greatly shorten the transaction time and improve trade efficiency.

On the other hand, it is also a very important point. With the development of the new era of the Internet, artificial intelligence, and digital economy, the central bank's digital currency will have a very important impact in the medium term.

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3. How should Bitcoin, Ethereum, etc. and central bank digital currency get along with each other?

In terms of characteristics, the three are different and each has typical characteristics.

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4. Prospects for the Central Bank's Digital Currency

(1) The digital economy will continue to grow as a new economy, and the central bank's digital currency will play a pivotal role in this issue.

(2) Establish a national digital asset trading platform with CBDC as the medium. As far as China is concerned, this work is already on the agenda. At present, including the establishment of the Xiongan digital asset trading platform in Hebei Province (which has been included in the 2021 annual plan of Hebei Province), many provinces have already begun to deploy. Relying on the CBDC method to reorganize the savagely growing and false blockchain technology industry, it is estimated that many companies and technical teams will use this to wash their hands and classify them into the national "regular army".

(3) Taking CBDC as the point, radiating as the line, and driving as the surface will help promote the internationalization of currencies of various countries (especially the renminbi), and it is also possible to create an international exchange similar to oil futures trading.

(4) The most important point is that the birth of CBDC truly represents that national power has really begun to enter the blockchain industry. Traditional Internet companies such as Microsoft, Google, and Amazon, as well as China's Baidu, Alibaba, and Tencent, will also blatantly enter this field. After hand-to-hand combat, there will be a world-class reshuffle.

(5) The intervention of CBDC will promote the reshuffle of blockchain technology companies, and the consensus on blockchain technology standards and access rules will further usher in an explosive period.

(6) It is estimated that the CBDC layout will be completed within 5 years at the earliest and 10 years at the latest, and the blockchain technology will explode within 15 years, and will be combined with new communication technologies (8th generation mobile communication technology, breakthroughs in optical fiber-level communication quality) 20 years later. , artificial intelligence, virtual reality, Internet of Things and other perfect integration, the birth of phenomenon-level real-world scene applications.