Huobi Research: our country’s central bank digital currency(CBDC) has chosen the most stable development mode at present, and the current electronic currency may be completely replaced by the CBDC
Our country’s CBDC and electronic payment instruments have chosen the most stable and academically proven development mode. Electronic payment instruments adopt a central bank-commercial bank two-tier price mechanism, which can effectively protect commercial banks and avoid the structural disintermediation risk that the central bank’s digital currency may bring to commercial banks and the centralization risk of the central bank’s internal credit allocation process, and the risk of bank runs under the financial crisis. The promotion process will basically not have much impact on the existing financial infrastructure.
Judging from the current research and development, if the CBDC gradually replaces the existing currency, the central bank will exercise more currency-related rights and obligations, and there may be major changes in the structure of traditional financial infrastructure. The future role of commercial banks may undergo considerable changes, and the financial system will become flatter, full of opportunities and challenges. The current electronic currency may be completely replaced by the CBDC. (Luzhi Kang, Huobi Research senior researcher)