Topic: What are the characteristics of digital currency? (Read 168 times)

Insiders said that digital currency has the main characteristics of network data packets. This type of data packet by the data code and identification code, data code is what we need to send, and identification code indicates where the data packet from, where to go and other attributes.

What are the characteristics of digital currency?-Kcash-Brand New Digital Currency Wallet
Due to the characteristics of digital currency, the direct benefits brought by digital currency to the central bank not only save the issuance, circulation and settlement costs of banknotes, but also enhance the central bank's ability to control the funds.
In fact, printing money is also money, including banknote printing, anti-counterfeiting technology and labor costs. Like printing money, recycling old money can also be a time-consuming and labor-intensive work.
Therefore, compared with banknotes, digital currencies have the advantages of lower issuance costs, lower transaction costs, traceability and higher counterfeiting costs. Therefore, the future of digital currencies is a trend.
The "trace mark" and "traceability" of digital currencies can enhance the convenience and transparency of economic transactions. Economist Yu Feng Hui said money laundering, tax evasion and other crimes are expected to be reduced. At the same time, with the application of blockchain technology, a unified national account book will be set up throughout the country and even the rest of the world, allowing every sum of money to be traced back, tax evasion, and money laundering within the regulatory scope. It may even be tax deductible on a credit card machine .

The emergence of digital currency, the most affected is the hands of banknotes. So, digital currency era, banknotes is useless?
Dong Ximiao, a visiting researcher at Chung Yang Financial Research Institute of Renmin University of China, said that for now, it will take a long time for the state to launch digital currency. In the short term, the paper money in our hands will not be affected. Even if digital currency is really started to be implemented, the money in the hands of residents will not be discredited. The digital currency is only a change in form. The issue size is still controlled by the central bank. Therefore, the purchasing power of banknotes will not be affected in the short term. Just as India announced a while ago, when it denounced large banknotes of Rs 500 and Rs 1,000, it still provided the people with a way to exchange small bills, and the wealth of the residents would not shrink.
Concerning the existing circulation system, Fan Yifei, deputy governor of the central bank, disclosed that the issuance of digital currency is still inseparable from the dual mode of "central bank-commercial bank", thus making it easier for the legal digital currency to gradually replace the existing currency operation framework Banknotes, without subversion of the existing currency circulation system.