Author(s)

Meng Liao

Corresponding Author

Meng Liao

ABSTRACT

The short-term value of the central bank's digital currency is often based on the "digital characteristics" of the currency. Taking DC / EP (Digital RMB) as an example, in the short term, the central bank's digital currency issuance can crack down on AML / CFT, help the economy release new economic vitality, maintain monetary effectiveness, promote the process of internationalization, and enhance national financial power. The long-term consideration is to focus on "the competitive advantage of digital currency system". In the future, the international monetary system is likely to evolve into two forms: one is the international digital monetary system composed of different national digital currencies, and the other is the single monetary system with some super sovereign digital currencies as the main body of international trade. For the former, digital RMB should make good use of the current first mover advantage and maintain the advantage to play an important role in the future digital currency system. For the second case, we need to make some predictions: the possibility of the future development of digital currency in the direction of super sovereign currency, and the existence of national sovereign currency under the super sovereign digital currency system.

KEYWORDS

Central bank digital currency, DC / EP, impact