Modern version "Jiaozi": foreign media say that the history of the development of digital currency in China is worth studying

The Chilean US business website recently published an article titled "Are We Ready for Digital Finance?" China's answer is 'yes' in the article, examining the potential of China's digital currency market from an expert's perspective. Now the article has been deleted accordingly as below.

Can you imagine Marco Polo explaining the virtual benefits?In the 13th century, it was necessary to explain to Europeans how banknotes worked in China. Today, Marco Polo can say that a virtual currency is "a set of numbers or numerical values ​​which are made up of special letters and numbers created by the result". It only costs if the customer is willing to pay. Virtual results can be exchanged electronically. It does not exist in the body. Virtual rewards are not provided by any organization or organization, but are saved on a computer network in encrypted form. "

Schopenhauer said: “All truth reaches three stages.First, laugh. The second is strong resistance. Third, it is taken for granted.“So this is really happening at a time of change in the financial system, it is difficult for us to make financial decisions, so the story of financial reform is repeating itself again.

In China, one of the largest cryptocurrency markets, the central bank tightened in September this year."The virtual profit market is a financial crime"It is detrimental to human security. China was one of the first countries to try to eliminate the use of cryptocurrencies, and already in 2014, Chinese financial institutions banned Chinese companies from running private websites using Bitcoin consumer products. This is the time when virtual currency begins to grab the attention of the organizations involved. In 2019, China announced that it would launch a digital renminbi. According to media reports, from mid-2020, China's central bank launched a number of attempts against the digital yuan. For example, the home payment experience between Hong Kong and mainland China began in June of this year. In November of this year, China launched the central bank's digital currency at the China International Import Expo in Shanghai, and thousands of domestic and foreign enterprises participated in the exhibition. Get up to 50% off your purchase with these digital perks at stalls, restaurants (eg, Pizza Hut, KFC), grocery stores, and gift vending machines.

Dating back to around 800 years, life seems a little different. It was China that created the legal tender which is one of the foundations of today's economy.Around 1000 AD, a treaty (gyoza) appeared in Sichuan, China to address the problems caused by the trade in iron coins (representing gold and silver as a medium of exchange). . This is because the use of gold and coins as an exchange has kept them in the region.

According to author Tim Harford, a contract is based on the trust of a manufacturer and developer of a contract that can be passed from one person to another. As mentioned by the European Central Bank (ECB) in 2012, the latest version of this system can be described as virtual currency.An unregulated digital resource is reported and managed by developers and used and trusted by members of the virtual community.The "China" Jiaozi "is fully aware of our role explained by the Financial Action Task Force on Financial Protection Laundering (FATF) when interpreting virtual currencies:" A representative value can be used in digital marketing and can be used as an exchange. Actually. and / or an account and / or assets (not fiat in all cases). It is not a decision to leave or approve the virtual benefits and perform the above activities with the consent of the communities. "

Chinese police quickly find ways to take advantage of it.They started by managing the reputation of these exchanges, establishing rules governing these costs, and eventually restricted the exchange itself and led to the whole business. Isn't that a warning that the Chinese government is now involved in the cryptocurrency issue?

At first, Jiaozi took over from China. It costs more than iron ore because it is cheaper to transport and can be distributed to many areas and abroad. However, the Chinese authorities turned to the law and abandoned the practice of exchanging metal money with Zhaoji. Can you imagine the thought of the change at that time?

The electronic version is the modern version of Jiaozi. According to the FATF definition, "A representation of the amount of electricity used to replace profits in fiat.", that is, the cost of transport with fiat status. According to the Royal Academy of Spain, the word" court "means to approve or authorize something to work. The rulings supported the equivalent of economies then, but not today, so today the global fiduciary system is only supported by money pledged by companies. The central bank and the old bank have been replaced by news, increasing, so that Jiaozi was worth only 10% of its face value at the beginning of the 11th century and was completely devalued and believable.

Arguably, this is not enough to claim that Bitcoin and other non-physical virtual currencies can trade fiat currencies. Because there is more than one form of body support.In fact, the US dollar is not backed by gold, and it is not always printed on paper. After the financial crisis, the US Fed raised millions of dollars to protect the US economy and inject more income into the economy. It is computerized and has no maintenance costs. Use as following result contained in the like product. In fact, it is similar to Bitcoin today. Bitcoin is already legal digital currency in El Salvador, and the Federal Reserve is still considering releasing a digital version of the encrypted US dollar.