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What is the strategic significance of central bank digital currency (CBDC) (related questions about CBDC)

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What is the strategic significance of central bank digital currency in the paym

What is the strategic significance of central bank digital currency (CBDC) (related questions about CBDC)

What is the strategic significance of central bank digital currency in the payment field?

Technologically speaking, central bank digital currency is a new form of legal digital paper currency or hard currency. This new electronic payment method has the function and characteristics of “value storage” and can achieve low-cost, efficient transaction settlement, just like traditional cash. The technology based on blockchain also has the feature of tamper resistance (i.e., no hacker attacks), which can effectively solve the problem of information asymmetry in existing banking systems. In comparison to other new electronic wallets, it also supports the digital processing of physical assets and functions such as account reconciliation and settlement (Phoenix Finance).

Related questions about central bank digital currency

Recently, the China Academy of Information and Communications Technology released the latest research report on central bank digital currency. The report shows that there are two technical architectures, “DCEP” and “e-CNY,” in terms of payment settlement. One is an electronic wallet based on blockchain technology, which can achieve peer-to-peer transactions. The other is a technology system that uses distributed ledgers, encryption algorithms, and smart contracts for cross-border fund transfers. Compared to mainstream internet platforms, “DC/EP” (Digital Currency Electronic Payment) has many advantages.

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