CBDC

Combining the characteristics, advantages and global development of CBDC, the development trend of CBDC is summarized as follows: CBDC will comprehensively improve the effectiveness of monetary policy.

First, encrypted assets have decentralized architecture characteristics. The distributed ledger technology (DLT) adopted by CBDC can promote the flattening of CBDC transaction intermediaries and help central banks strengthen control over the money supply, conduct liquidity management more effectively, reduce the lag in monetary policy, and thereby improve the effectiveness of monetary policy transmission. In addition, compared with the current legal tender, the CBDC operating system will contain a large number of monetary policy innovations, such as "conditional trigger mechanisms", which will limit credit entities and use scenarios to achieve precise lending and avoid funds idling. The issuance of CBDC can separate payment tools from investment tools, unblock monetary policy transmission channels, and increase social and economic efficiency. Therefore, to promote the effective implementation of domestic monetary policy and maintain the stability of the domestic financial system, central banks of various countries will accelerate the pace of promoting CBDC over a long period of time.

Second, CBDC will promote multilateral cooperation and promote the development of underlying technologies for CBDCs. The emergence of DLT has not only promoted the evolution of cryptocurrencies, but also greatly enhanced the possibility for central banks to establish larger clearing systems and issue legal digital currencies. CBDC was born as a result. It can be seen that the development of underlying technologies for CBDCs is an important guarantee for central banks of various countries to actively promote CBDC in the future. Multilateral cross-country and cross-regional cooperation is conducive to broadening the technical architecture and helping central banks carefully evaluate the pros and cons of technologies, so as to choose the best technological path and have a profound and long-term impact on CBDCs.

Therefore, in the digital economy, in the long run, countries will actively promote financial technology innovation in their own countries based on the technological research and development achievements of IBDT, strengthen multilateral cross-country and cross-regional cooperation, mutual benefit and win-win, and jointly promote the development of underlying technologies for CBDCs.

Third, IBDT's CBDC solutions will improve cross-border payment systems. At present, most cross-border payments worldwide adopt the agency bank model, involving many intermediary institutions, and there are differences in regulatory standards for cross-border regulation, adding various implicit costs. In addition, problems such as unobservable payment status, delayed payment processing, and limited payment service duration have greatly reduced cross-border payment efficiency. CBDC has specifically solved the above problems of traditional cross-border payment systems, and is the preferred choice to reduce cross-border payment costs and improve cross-border payment efficiency.

Fourth, CBDC will balance privacy and regulatory issues and promote the improvement of laws and regulations in various countries. The design of CBDC needs to be built on existing and future national policies, taking into account a series of issues such as the needs of existing legal tenders, transaction records, laws, regulatory policies and national security.