Yao Qian: Central Bank Digital Currency Optimized Payment System Improves Effectiveness of Monetary Policy

2019-03-13 10:14

According to the financial community, Yao Qian, general manager of the China Securities Depository and Clearing Corporation, issued a report on “The Central Bank’s Digital Currency: Optimization of the Monetary System and Its Issuance Design”. The article first discusses the shortcomings of the existing monetary system and points out that the central bank’s digital currency pair is optimized. The payment function of legal tender has an important driving role. On the one hand, this is reflected in the fact that the central bank's digital currency can reduce the dependence on the payment services provided by the private sector, which can alleviate the central bank's regulatory burden and pressure, and can also strengthen the authority of the existing legal currency. On the other hand, the issuance of central bank digital currency can solve the dilemma faced by modern monetary policy, including the inefficiency of policy transmission, the difficulty of countercyclical regulation, the inefficiency of money from the real economy to the virtual economy, and the management of policy expectations. On this basis, the author explores the issuance mechanism of the central bank's digital currency, pointing out that the central bank's digital currency issuance should have economic status dependence (ECONOMIC STATE CONTINGENCY), and shows that this feature is the key to the central bank's digital currency to solve the dilemma of modern monetary policy. Where.