CAN DIGITAL CRYPTOCURRENCIES OVERTURN INCLUSIVE FINANCE? AN ANALYSIS OF ITS SIGNIFICANCE BASED ON CHINESE INTERNET FINANCE

Abstract

This paper aims to explore the concept of digital cryptocurrency and its potential role in achieving inclusive finance. By drawing on relevant studies conducted in both China and abroad, we delves into the history and development, nature and types, as well as the benefits and risks associated with digital currencies. Additionally, the impact of digital currencies on deposit money is thoroughly examined, focusing on three key aspects: deposit currency stock, credit creation, and payment and settlement methods. Furthermore, the study presents a compelling case study on financial inclusion, using Alipay as an illustrative example. Building upon this case study, the paper offers insights into the future development of digital currencies. Although the future development of digital currency remains somewhat speculative, this research provides valuable considerations and outlooks Overall, the emergence of digital currency technology represents a momentous milestone in the financial landscape. As we move forward, understanding its potential impact on inclusive finance becomes increasingly crucial. This paper aims to shed light on this fascinating subject, paving the way for further research and discussions in the field