In the past year or two, digital currency has slowly entered our eyes, especially the explosion of Bitcoin The rise caused the market madness. Everyone was waiting and watching in doubt. The high bitcoin price gave birth to various types of digital currency financing (ICO) boom, for digital currency to become a future currency form, it must first have all the functions of existing currencies. However, the existing digital currencies represented by Bitcoin and blockchain technology still have challenges on some traditional issues.
Digital currency is an unregulated, digital currency, usually issued and managed by developers, and accepted and used by members of specific virtual communities. The European Banking Authority defines virtual currency as:the value of digitalization means that it is not issued by the central bank or the authorities, nor is it linked to legal currency, but Because it is accepted by the public, it can be used as a means of payment, and it can also be transferred, stored or traded in electronic form.
In recent years, the abuse of banknotes has led to increased inflation, third-party paymentFrequent security crises, coupled with the gradual maturity of blockchain technology, decentralized Bitcoin, Ethereum, Ripple, etc. The transformed digital currency came into being. Digital currency has the characteristics and advantages of low transaction cost, fast transaction speed, high anonymity and fixed amount of currency.
Because of the above advantages of digital currency, it has been widely welcomed by markets around the world. According to Coinmap data, currently 16,783 merchants around the world accept Bitcoin. Among them, countries with unstable economies such as Turkey and Argentina have higher acceptance by merchants; followed by more developed countries and regions such as North America and the European Union.
At the same time, the use of digital currency is becoming more abundant and its user acceptance continues to grow. At present, the use of digital currency has covered various scenarios such as shopping consumption, wage payment, transportation, travel, takeout settlement, and tuition payment. The ever-expanding landing scenarios have also brought a wider range of consumer groups. Generally speaking, although the user of digital currency still accounts for a small part of the total population, the number of users is constantly increasing. Currently, there are 10 countries around the world with a usage rate of more than 10%.
The central bank launches digital currency
Digital trust and digital currency based on blockchain technology are influencing Economic and financial development model. After a decade of rapid development of blockchain technology, central bank digital currency has gradually become a new focus of attention.
In September 2019, at the Fifth Blockchain Global Summit, Yao Qian, general manager of China Securities Depository and Clearing Corporation, said that central banks in various countries are studying legal digital currencies , Not only study the digitization of the existing legal currency, but also repair some of the shortcomings of the existing currency system in the future. Digital assets and digital currency are the two most important aspects of digital economy. The development of digital assets can not only effectively expand the application scenarios of digital currency, but also lay an important cornerstone for the issuance of digital currency in the future. The coordinated development of the two is the basic driving force and important symbol of the development of digital economy.
In general, asset digitization makes the disadvantaged groups in traditional finance no longer vulnerable, no longer difficult and expensive in financing, and finance will become closer to the entity. It is more inclusive and shared. At the same time, with the support of modern technology, its security and convenience of supervision are not the same as traditional financial assets. It can flexibly fill in the blank area of existing financial services. In other words, the prospects for the development of digital currencies are better.