Why can’t digital currency be exchanged for gold and foreign currency (why can digital currency bypass US dollar settlement)

Why can’t digital currency be exchanged for gold and foreign currency? Why can’t digital currency be exchanged for gold and foreign currency?

Why can digital currency bypass US dollar settlement

Editor’s Note: This article is from Carbon Chain Value (ID: cc-value), author: Wang Jiajian, authorized republished by Odaily Star Daily.

When the US dollar loses its dominant position, digital currency can bypass the US banking system for international settlement, achieving safe, reliable, and transparent cross-border transactions and payments without relying on traditional financial institutions. If cryptocurrencies like Bitcoin become global reserve currencies, then why issue our own digital cryptocurrencies? Let’s discuss this question. 1. What is the central bank digital currency?

The Federal Reserve has launched an electronic payment tool called “DCEP.” It transfers funds between central bank accounts and private entities using blockchain technology, and then is regulated by the government and processed in digital form. At the same time, it can provide a complementary alternative to the existing fiat currency system. 2. What are China’s leading advantages in the field of digital RMB? 3. How to establish a more secure, stable, and trustworthy trade foundation?

China’s research on legal digital currencies is still in the preliminary stage, and it has already formed a new type of digital currency based on the Internet. For example, China’s DC/EP pilot project uses a dual-layer operating structure based on distributed ledger technology and adopts a notary mechanism. This means that anyone can use national credit as a guarantee without trusting third parties. As one of the first countries to officially launch domestic circulation, with its rich network infrastructure, powerful industrial resources, and abundant experience, China has become the world’s largest economy. 4. In this context, why did Professor Chen Xiaohong from the School of Computer Science at Renmin University of China propose, “In order to better solve the problem of difficult and expensive financing for small and medium-sized enterprises.” He pointed out that fundamentally, people need a new form of currency without borders, that is, cash, because all countries are striving to cope with the impact of the COVID-19 epidemic. “So, under such circumstances, I believe there will be many other types of products, including new tokens issued by private companies and so on.” 5. How to ensure the authenticity and effectiveness of information?

The Libra Association believes that Libra can help solve the liquidity shortage and high financing costs for small and medium-sized enterprises, and allow users to directly deposit or withdraw funds from their wallets, thus avoiding many small currency exchange transactions. 6. Enable more commercial activities to take place without centralized intermediary intervention, reducing intermediate risks. 7. Does a new decentralized organizational model exist, rather than the traditional centralized organizational model? 8. Can the “decentralized” organizational model improve efficiency? These ideas are inspired by the Brookings-Dunton Institute in the UK, which has attempted to create a decentralized autonomous organization to provide a platform for entrepreneurial companies in different industries.