At the recent China Economic 50 Forum, former PBOC Governor Yi Gang delivered a speech on the theory and practice of digital yuan. He elaborated on the background and significance of the research and development of the digital yuan in simple terms, revealing the huge potential and value of this emerging form of currency.
First, Yi Gang mentioned that the digital yuan can improve the efficiency of currency issuance and the central bank's payment system. In the traditional monetary system, the central bank's payment and clearing system, although large and complex, is still subject to various constraints, such as time and space constraints. Relying on modern technology, the digital yuan can achieve 24-hour uninterrupted global transactions, greatly improving the efficiency of payment and clearing and reducing the cost of cross-border payment. This has a positive role in promoting global economic integration and the development of international development.
Second, the digital yuan can provide a backup for our payment system. Yi Gang pointed out that with the development of technology, our payment system is increasingly dependent on networks and electronic devices. However, in the event of a network failure or equipment failure, the payment system may be at risk of being paralyzed. As an alternative, the digital yuan can provide stable payment services in this case and ensure the normal operation of the economy.
Most importantly, the digital yuan can promote financial inclusion and transactions for some special groups and specific occasions. In the traditional financial system, many remote areas and poor people are excluded from financial services and do not have access to basic financial services. The popularization of the digital yuan will help solve this problem, so that more people can participate in economic activities and enjoy the dividends of economic development. In addition, for transactions of some special groups and specific occasions, such as cross-border travel, cross-border**, etc., e-CNY also provides a more convenient and secure payment method.
Yi Gang emphasized that the main purpose of the research and development and application of digital yuan is to serve the people, support the real economy, and improve the business environment. The promotion of the digital yuan will help reduce market transaction costs, improve the operational efficiency of the financial system, and further unleash market vitality. At the same time, the transparency and traceability of the digital yuan can also help combat financial crime and maintain financial stability.