| The Political Bureau of the Central Committee of the Communist Party of China conducted the 18 th collective learning on the current situation and trend of blockchain technology development,the General Secretary Xi Jinping stressed that the integrated application of blockchain has been playing an important role in the new technological innovation and industrial transformation,blockchain should be taken as an important breakthrough in the core technology innovation,we should accelerate the development and industry innovation of blockchain.He also pointed out that the application of blockchain has extended to digital finance,digital asset transactions and so on.In summary,blockchain has two basic application paths in the field of money and finance.The first path is the development of the original blockchain financial projects,which is represented by Bitcoin,Ethereum and open finance rising in 2019.The original blockchain financial projects take blockchain as the underlying technology architecture and integrates the concept of blockchain into the project operation.The second path is "finance + blockchain",which includes: financial regulatory authorities represented by central banks use blockchain to improve administrative and regulatory efficiency,the traditional financial institutions represented by commercial banks use blockchain to improve processes,reduce costs and improve efficiency,and the emerging technology enterprises such as the third-party payment companies,communication companies,social media companies use blockchain to widely develop financial business.However,the existing research on the application of blockchain in the field of money and finance is deficient in both theoretical and empirical aspects,and it is not systematic,which seriously hinders the application of blockchain in the field of money and finance.Therefore,it is important for promoting the development of blockchain technology and industry innovation,balancing the innovation and risk of blockchain finance,developing digital economy and building China into a digital financial power to research on the application of blockchain in the field of money and finance from the theoretical and empirical aspects.We study the application of blockchain in the field of money and finance from the theoretical and empirical level,taking two basic paths of blockchain application in the field of money and finance as clues.The main works are as follows:First,we summarizes the theoretical basis and practical difficulties of blockchain application in the field of money and finance,the dynamic evolution of the form and connotation of money from four dimensions: the origin of money,the evolution of monetary function,whether money must be issued by state,and the digital currency under the technological evolution.We summarize and make comments on the research on the financial nature of digital assets based on blockchain such as Bitcoin,whether stable coins based on mortgage economy system and "algorithmic central bank" can achieve price stability,design mechanism and economic effects of Central Bank Digital Currency(CBDC).Secondly,the framework of blockchain consensus mechanism covering algorithmic consensus,decision consensus and market consensus is constructed.The meanings of algorithmic consensus,decision consensus and market consensus are elaborated respectively.The economic implications of different mainstream algorithmic consensus,such as POW?POS?DPOS?DAG,are analyzed,and the development suggestions of three kinds of blockchain consensus mechanisms are given.Thirdly,we define the connotation and extension of digital currency from the perspective of economy and finance,clarify the relationship between CBDC and blockchain,and the role of blockchain in the function of CBDC;we discuss and revise the international popular setting principles of CBDC,and design a CBDC operating system based on the overall framework of Chinese version based on its economic reality.And we use DSGE model to empirically research on the economic effect of China's central bank issuing CBDC.Fourthly,based on the event analysis method and VAR-DCC-GARCH model,we empirically analyze the short-term and medium-long-term hedging property of digital financial assets represented by Bitcoin from the perspective of macroeconomic and financial uncertainty,and compare it with gold.Based on DCC-GARCH-COUPLA model,we empirically analyze whether the off-chain mortgage and on-chain mortgage can achieve asset price stability and their dynamic time-varying characteristics.We analyze the logic,current situation,trend of the new financial formats and how to integrate them into the regulatory framework of open finance based on blockchain.Fifthly,based on the perspective of political economy,we analyze the three most closely integrated products of blockchain in the money and finance: cryptocurrency,Global Stable Coins(GSC)and CBDC.We summarize the current situation and challenge of global blockchain governance,and put forward policy suggestions to form a sound blockchain financial governance framework based on the analysis of multi-dimensional governance.Our innovations are mainly reflected in the following four aspects:Firstly,the innovation of research perspective.We analyze the algorithm consensus of blockchain from the perspective of economics,expound the economic meaning of different mainstream algorithm consensus,such as POW?POS?DPOS?DAG,construct a blockchain consensus mechanism framework covering algorithm consensus,decision consensus and market consensus,and analyze the dynamic mechanism of the three kinds of consensus.The development and supervision of cryptocurrency,Global Stable Coins and CBDC are discussed from the perspective of political economy.Secondly,the innovation of theoretical definition.We define the connotation and extension of digital currency from the perspective of economy and finance,analyze and expound blockchain which serves as the emerging technology from the economic and financial dimensions,and analyze the evolution and development of monetary and financial forms and essence under the development of digital technology.And we make the definition and elaboration of open finance,which is based on blockchain as a new type of financial pattern.Thirdly,the expansion of theoretical framework.At this stage,the core principle of CBDC which is popular in the world is proposed by Kumhof& Noone(2018),but in fact,there are some irrationalities.We discuss and amend the principle of CBDC,design a hierarchical interest rate system of CBDC based on the overall framework setting in China.Based on DSGE model,the economic effect of the issuance of CBDC by the Central Bank of China is discussed empirically.Fourthly,the innovation of research methods.Based on the event analysis method and VARDCC-GARCH model,we empirically analyze the short-term and medium-long-term hedging property of digital financial assets represented by Bitcoin from the perspective of macroeconomic and financial uncertainty,and compare them with the hedging property of gold.Based on DCCGARCH-COUPLA model,we analyze whether the off-chain mortgage and on-chain mortgage can achieve asset price stability.Based on the accurate description of China's economic and financial system and the revision of the core principles of CBDC in China,we discuss the economic effect of the issuance of CBDC by the Central Bank of China based on the DSGE model.Generally speaking,the rapid development of blockchain and its wide application in the field of money and finance have attracted worldwide attention.Based on the two basic paths of blockchain application in the field of money and finance,we make an in-depth analysis on the consensus mechanism of blockchain,blockchain and CBDC,blockchain and digital financial assets,the supervision and governance of blockchain finance and other important issues from the theoretical and empirical level,so as to promote the application of blockchain in the field of money and finance,promote the technology of blockchain and its industrial innovation,balance blockchain financial innovation and risk,and build China into a digital financial power. |
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