Global development of digital currency
Digital currency is a virtual currency based on
cryptography and blockchain technology. They are not controlled by central banks or governments, but are maintained and verified by a decentralized network of participants. The most prominent example of a digital currency is Bitcoin, which was created in 2009 and has spawned a wave of financial innovation and social transformation. Bitcoin has also inspired the emergence of many other digital currencies, such as Ethereum,
Litecoin,
Ripple and others, which have different features and functions, which are offered to users. more options and possibilities.
Digital currency has the advantage of enabling rapid, inexpensive, transparent, secure and borderless transfers of value, offering enormous potential and opportunities for global economic activities and welfare.However, digital currencies also face many challenges and risks, such as price volatility, regulatory uncertainty, technical issues, cyberattacks, fraud and money laundering. These issues need to be effectively addressed and managed to ensure the sustainable development and wide application of digital currencies.
During the development of digital currency, central banks around the world have also started to consider issuing their own digital currencies, namely Bank Digital Currency. Central Bank (CBDC). CBDC is a legal digital currency issued and regulated by a central bank. They can act as an alternative or complement to cash, providing the public with a safe, convenient, efficient and comprehensive payment method.CBDCs can also serve as a policy tool to help central banks achieve goals such as financial stability, monetary sovereignty, financial inclusion, and cross-border cooperation.
According to the latest report from the Atlantic Council1, there are currently 114 countries mining CBDCs, accounting for more than 95% of global GDP. Among them, 60 countries have entered the advanced stage of CBDC (development, testing or launch), 11 countries have fully launched CBDC, China's digital yuan pilot project has covered 260 million people and has plans to expand nationally by 20231. Jamaica is the latest nation to launch a CBDC, its CBDC is called JAM-DEX1.
China is one of the largest digital currency markets in the world and one of the first countries to research and promote CBDCs.The People's Bank of China established a digital currency research institute in 2014 and launched the digital yuan pilot project in 2020. Currently, the digital yuan has been tested. internally tested in Shenzhen, Suzhou, Chengdu, Xi'an and 10 other cities, and was tested for the Beijing Winter Olympics