Research On The Impact Of The Application Of The Central Bank Digital Currency On The Monetary And Financial System

With the rise of encrypted digital currencies such as Bitcoin,these private digital currencies have brought enormous pressure to the financial stability and financial supervision of various countries.Central banks and international financial organizations have begun to explore active and effective response strategies.Based on blockchain technology,the central bank’s digital currency with national sovereign credit endorsement has been studied and applied by more and more countries and regions.The application of central bank’s digital currency has gradually had a significant impact on the digital business environment of various countries.The importance of research on the application of central bank digital currency and its impact on the monetary and financial system has become increasingly prominent.This paper first studies the basic theoretical support for the application of the central bank’s digital currency,and then studies the application of the central bank’s digital currency in various countries and regions.Based on theoretical support,by studying the application of central bank digital currency in various countries and regions,from the perspective of business environment,the similarities and differences in the application of central bank digital currency in various countries and the practical problems encountered are compared and analyzed.And from the perspective of the digital business environment,it deeply studied the impact of the issuance and application of the central bank’s digital currency on the currency and financial system.The issuance of the central bank’s digital currency helps the central bank to improve the digital management of currency capabilities,reduce circulation costs,improve circulation security,and speed up currency.The speed of circulation improves the infrastructure construction of currency circulation in the digital business environment.If the central bank’s digital currency adopts an interest-generating policy,it will have a greater impact on the net interest margin of commercial banks’ on-balance sheet businesses,and improve the security protection of funds in the commercial bank system;for the related businesses of third-party payment institutions,the application of the central bank’s digital currency encourages the first Three-party payment institutions innovate payment methods and standardize the third-party payment environment;the application of the central bank’s digital currency will improve the market structure of cross-border payment networks,promote cross-border payment institutions to go overseas,and facilitate the rapid development of the cross-border e-commerce industry.The application of the central bank’s digital currency is conducive to improving the corporate credit level of financing companies,establishing a fair and effective credit evaluation system,and improving the speed of corporate capital turnover.The application of the central bank’s digital currency reduces the threshold for merchants to enter the digital business market,simplifies the payment process,and reduces handling fees.The application of the central bank’s digital currency is a convenient and safe payment method for individual consumers and enhances consumers’ financial self-control.Finally,by comparing and summarizing the practical experience of the central bank’s digital currency application in various countries and combining the characteristics of CBDC,this paper puts forward some policy suggestions for the development of the central bank’s digital currency in my country.The competition of the global central bank digital currency has already started,and my country should continue to actively promote the development of the central bank digital currency,focusing on the currency application scenarios in the future digital business environment,and using the central bank digital currency to promote the process of my country’s RMB internationalization.