Digital Currency, Commercial Banks, Impacts and Outlooks

Abstract

Yangjiang BranchCurrently, the digital currency (abbreviates to DC or EP) issued by the People's Bank of China has been tested internally in Shenzhen, Suzhou, Xiong'an, Chengdu, and the future Winter Olympic scenes. China's digital currency has become a global leader. Digital currency is a brand-new design, which is not only different from the tokens based on accounts, but also different from the tokens which are lack value support and issuer management such as Bitcoin, but can truly replace the traditional physical currencies, complete payments and support other financial and business needs, and it is used for digital currency applications. The application of digital currency can reduce transaction costs and improve the efficiency of financial operations, which will speed up the internationalization of RMB and raise the status of RMB in the international financial system. With its accelerated development, the digital currency does not need to be bound to any bank account, and is free from the control of traditional bank account system, and its development will have a huge impact on the way of financial services in the future. Therefore, as the main carriers of traditional currency, commercial banks will be profoundly impacted in the future.