Study on the Prospect and Significance of Statutory Digital Currency

Abstract

With the development of Fintech, the issue of legal digital currency will have a direct impact on the transmission of monetary policy and the implementation of financial supervision. This paper holds that issuing digital currency can reduce the high cost of issuing and circulating traditional currency, enhance the convenience and transparency of economic transactions, reduce money laundering, tax evasion and other illegal and criminal acts, enhance the central bank's control over money supply and currency circulation, better support economic and social development, and promote universal benefits. In the future, the establishment of digital currency issuance and circulation system will also help China to build a new financial infrastructure, further improve our payment system, improve the efficiency of payment and liquidation, and promote economic upgrading. As a combination of financial and technological innovation, legal digital currency can produce a more reliable and transparent monetary system.