Since the rise of Alipay, money has been digitized. People no longer need to carry cash transactions, and they can complete the transaction by scanning the code on their mobile phones, which is simple and fast. So what's the difference between the way we pay through APP software and the digital currency to be issued by the central bank?

Personally, I think that although digital currency is still displayed in the form of RMB on the terminal, it is essentially a string of encrypted numbers. The transaction methods we use, such as Alipay, are essentially the addition and subtraction of bank accounts. One is the specific currency and the other is the actual operation mode. This is the most fundamental difference between digital currency and currency digitization.

So what are the benefits of issuing digital currency? Personally, I think there are the following points

First, crack down on corruption, smuggling, drug trafficking, money laundering and other illegal and criminal activities

In many movies, illegal transactions always like to use cash, because it can escape supervision. When the physical currency is taken out, it is difficult to find out its use process and flow path, which gives various criminal activities an opportunity. Then if digital currency is adopted, each card will have a unique number, and the use of mobile phones and other machines will leave traces of transaction records. The money can be found from Zhang San to Li Si to Wang Er, so that we can easily crack down on corruption, smuggling, drug trafficking, money laundering and other illegal crimes.

Second: cooperate with the Belt and Road Initiative to further dollarization.

Our country proposes the Belt and Road Initiative, the establishment of AIIB and the establishment of Shanghai Futures Exchange, all of which are essentially RMB internationalization, and further, dollarization. People always criticize M2 for overspending. One of the reasons for the overexpenditure is that our currency is pegged to the US dollar. When the United States exceeds the US dollar, if we don't use it to issue RMB, it will cause RMB to appreciate. Originally on the market 100 steamed bread, the United States 100 dollars. Our corresponding exchange rate is 700 yuan RMB. At this time, a steamed bread is worth one yuan or seven yuan. Now the United States has printed 100 dollars, totaling 200 dollars. Since the output has not increased, there are still 100 steamed buns on the market, so now 200 yuan corresponds to 100 steamed buns, and one steamed bun is worth two yuan (this is inflation, that is, more money is worthless). At this time, if we still have 700 yuan, then a steamed bread is still worth seven dollars, that is, two dollars equals seven dollars, that is, our money has appreciated. Of course, this exchange rate rise has a process, for us extroverted people. It will cause a serious blow, because foreign countries need more dollars in exchange for RMB to import our goods, and we hold a lot of dollar debt, and the dollar has depreciated, so the dollar debt has shrunk. I could have bought ten steamed buns, but now I can only buy five, which is equivalent to the loss of national assets. Then the dollar will overspend, and we will follow suit, and the original exchange rate will remain unchanged. The export will not affect. Although things need more money, everyone has more money. Of course, there are also ways to prevent the shortage of RMB caused by the inflow of hot money and lead to deflation, which is also unfavorable to the economy. Without money and poor liquidity in the market, economic activities will shrink and people's income will drop. Then release the digital currency. Through the strong trade activities of our country and the blessing of the Belt and Road Initiative, crude oil futures and AIIB, our business partners can trade in digital currency, because this currency settlement method is divorced from the US dollar settlement system. Some friends will say, let others use our digital currency, and others will definitely use it? Of course, this requires our own strength to be strong enough and attractive enough. At present, we already have such strength in some regions, such as Africa, such as some countries along the Belt and Road. When we help these countries, we can adopt the trading method of digital currency, that is, I lend you money, then help you build your country and earn it back. The method of use is of course as I said. In the EU, the dollar is universal and the euro is universal. Renminbi can also be used in Africa. After all, Africa is rich in mineral resources. Skipping the dollar settlement reduces the risk of being used or even suppressed, and can form a settlement system centered on our central bank. In recent years, we have adopted the way of currency swap with other countries for RMB internationalization, but that is the docking of the two central banks. As for whether the other country will develop its own digital currency, it depends on its own strength and ability. Not everyone can develop it, and preemption is subject to people. Let's see, Alipay WeChat occupies the world of digital payment. Digital currency is more complicated, of course, and there will be all kinds of games.

Through the American oil trading system, the US dollar has become the world settlement currency. We can also make use of the development of the Belt and Road Initiative to promote digital currency in China to become a new universal settlement currency. After all, the world has been settled by dollars in bonus hunter for a long time, and it would be nice to change it.

The third is to accurately regulate the economy and accurately support enterprises.

In recent years, China's economic development has made great achievements, but it has also produced some economic hidden dangers, the most important of which is real estate. Although house prices will rise with the country's economic strength, it is undeniable that the soaring house prices in recent years have played a great role in real estate speculation. However, there is no good supervision method for the source of funds for real estate speculation. This year, the phenomenon that enterprise loan funds illegally entered the real estate in Shenzhen is that the flow of funds is not well controlled. The original loans to enterprises were originally used to buy houses. Suffering from the lack of good means to supervise the flow direction was originally a good intention, but it played the opposite role and made the country extremely uncomfortable. Digital currency can accurately control the flow of funds by tracing the source, and at the same time ensure that the funds are earmarked and provide accurate support for enterprises.

Fourth, the precise control of M2 currency.

As mentioned earlier, if the world economy is relatively stable, there is no currency surplus in the United States, and there is no external interference in China's currency, sometimes our M2 currency is still surplus, because some currencies have settled down and have not participated in the economic cycle, such as cash that has not been used for a long time at home. When this amount is enough, the state will print more money to make up for it, so as to ensure that the money needed in the economy is sufficient. Then when it is issued in digital currency, you can accurately find this part of the money and use certain technical means to make it circulate, because it is impossible to withdraw money from your home, but it is possible to operate the digital currency in your card.

Fifth, grasp the pulse of economic development more accurately.

This year's epidemic has damaged many people's income and hindered economic development, and some places have limited the issuance of shopping vouchers. Many people may not know if they don't pay attention. Then why doesn't the state distribute consumption funds to individuals? Like Macao, the reason is that the issuance of money is not well controlled, and it is impossible to accurately know who is short of money. If it is issued in cash, it will easily lead to corruption. Once digital currency is issued, it is clear at a glance how many accounts it has, or who applies for subsidies, so it is necessary to provide accounts for inquiry. Of course, this is after there is no physical currency at all. Otherwise, you can't hide a lot of money at home while saying that there are few digital currency in your account.

These are some personal opinions, non-professionals, just personal thinking for many days. Please correct me if there is anything wrong.