Research On The Impact Of Issuing Legal Digital Currency On Commercial Banks From The Perspective Of Risk

With the rapid development of digital technology and electronic technology,the actual form of currency has undergone tremendous changes,from the original tangible currency to intangible currency,that is digital currency.Digital currency is a kind of decentralized,point-to-point anonymous transmission of virtual currency,which can effectively reduce the cost of traditional tangible currency issuance and circulation and will become the trend of future currency development.Meanwhile,it will also bring about a tremendous change in the financial field.Currently,commercial banks in China carry the important function of currency circulation and affect the development of our national economy and society to a large extent.For commercial banks,the issuance and circulation of legal digital currency will bring more changes to commercial banks,and at the same time,they will also face greater threats and challenges.When dealing with the risks brought about by the issuance of legal digital currency,commercial banks should continue to innovate and reform,accelerate the pace of digital transformation,and ensure stable and sustainable development of commercial banks.In this context,this thesis comprehensively collects literature and data on legal digital currency,sort out the research results of legal digital currency,and combine the Currency Function Theory,Currency Supply and Demand Theory and Money Demand Theory to explore the specific impact of issuing digital currency on commercial banks through literature analysis,comprehensive analysis,and comparative analysis etc.In the first place,this paper outlines the actual situation of the non-pilot areas and analyzes the specific risks of legal digital currency combined with the deposits and loans of commercial banks in the pilot areas of digital currency.Then,the research hypothesis of this paper is proposed combined with the relevant data and literature collected and a research model is constructed based on this.With the help of empirical analysis methods,descriptive statistical analysis,correlation analysis,benchmark regression analysis,effect incentive analysis,Heterogeneity analysis,endogenous analysis,and robustness analysis,it is concluded that after the issuance of legal digital currency,the proportion of M0 increases,the current currency structure changes,and the currency multiplier,social financing scale,loan derivation,etc.decreases through empirical analysis.All these greatly affected the business performance of commercial banks;the higher the financial risk of commercial banks,the greater the negative impact of the remodeling of the currency structure brought by legal digital currency on the business performance of commercial banks.The problem of currency structure remodeling brought about by currency has a greater negative impact on the operating performance of commercial banks;In comparison with large state-owned commercial banks and joint-stock banks,the problem of currency structure remodeling brought about by legal digital currency has a greater negative impact on the operating performance of local commercial banks;In comparison with commercial banks in the central and western east regions,commercial banks are more vulnerable to the problem of currency structure remodeling,which affects business performance.Finally,to ensure that commercial banks can better deal with the risks and impacts brought by the issuance of legal digital currency,it is proposed to improve the construction of the commercial banking system,optimize the blockchain-related payment system of commercial banks,accelerate the merger and reorganization of small and medium-sized commercial banks in the region,and participate in the finalization of regulatory standards actively to actively embrace legal digital currency.