Our Situation: Access to Information for Blockchain and Central Bank Digital Currencies

Recently, Di Gang, Vice President of the Digital Currency Research Institute of the Financial Services Corporation of China, addressed the application of the Blockchain Technology Research Institute at the 18th Annual International Forum Conference. Finance International (IFF). He pointed out that the Institute of Digital Technology has taken the initiative to enable the active research of digital renminbi for blockchain applications in R&D activities. In fact, Yao Qian, former director of the Financial Institutions Corporation of China Digital Currency Research Institute and director of research and technology monitoring of the China Securities Regulatory Commission, sometimes reported data called "Blockchain and Central Bank Digital Currency" . We talked about blockchain technology and the realization of central bank digital currency.

Yao Qian believes that the function of blockchain is that it does not exist at the base, but that does not mean that it cannot be integrated into the process of the existing base. Use blockchain to decentralize decentralized work, without the hassle of both to be efficient and knowledgeable about CBDC central management.

Here is the full text.

Blockchain originated from Bitcoin, but it is a reliable technology that surpasses Bitcoin. The innovation of blockchain technology has not only led to the proliferation of digital personal funds, but also sparked the interest and exploration of central banks in many parts of the country. It can be said that most of the central bank digital currency (CBDC) experiments in South Korea are based on blockchain technology. However, to date, whether CBDCs adopt blockchain technology remains controversial, and the general view is that CBDCs do not support the use of this technology as a whole. The distribution of blockchains is incompatible with the central bank regulations.

The author believes that blockchain technology has reached an unprecedented level and is integrated into a wide range of technological applications. Thus, blockchain in design, whether through design or economics, has implications for understanding “fundamentalism”. How to use blockchain technology to better deliver state-of-the-art management systems may be the direction CBDCs should focus on for current research.

This article discusses the feasibility and solutions of blockchains in CBDCs, takes our case as an example and points out that the characteristics of blockchains do not depend on central authorities, but do not mean that they cannot unite within the intermediate leadership. . As long as the system is properly developed, centralized banks can use blockchain to make cooperation more efficient and better known in managing CBDCs.

Scenario 1: Check CBDC pricing

The author once claimed a digital currency bank "one currency, two repositories and three repositories". "Coin" is a digital bank statement, an encrypted digital string representing certain funds, approved and signed by the bank. "Two Libraries" refers to the bank's Digital and Digital Currency Library, formerly the data in CBDC's Store Central Bank Funds deposited in CBDC's private cloud management as a financial institution. The latter is for companies holding CBDCs, the data can be in the company's data center or in the private air of the CBDC, depending on the management money of the special green company.

"Three Sites" includes Evidence Center, Registry, and Big Data Center. Among them, the registrar registers the CBDC and its user ID, completes the member registration, registers the flow and completes the registration of the whole process of creating the CBDC, around, the merchandise and death. The main responsibilities are divided into several sections: registration, authorization to release information, application of the website for legal inquiries and reference services. The registration process completes the CBDC's publication, distribution, deletion process, and membership rights, while the certificate authority desensitizes the registration of membership information and the asynchronous communication of distribution information. CBDC data. Evidence law websites rely on file submissions to provide online referral services to the public and distribute resources to ensure consistency in central and commercial bank trappings.

From the perspective of employees, this can be understood as creating an "online account", for example CBDC authentication, and providing external investigation services that use data illegally and without proof of identity. information disseminated in the register. in line.

For the current distribution of information technology, this design provides the first ideas for application in two types of medium-sized banks and distribution and trading companies. On the other hand, key publicity and registration are isolated from the outside world, at the same time, they use the advantages of data distribution to improve the security and reliability of data queries and systems, while the data distributed are only used. To introduce external requests. For this reason, marketing is also done with advertising and registrations. Since the distribution market is constructed to improve the granularity of atomic transactions, the manufacturing industry has effectively avoided the performance bottleneck of traditional distribution ledgers in business. Obviously, this design uses all the advantages of blockchain technology and improves the reliability of CBDC bank statements, but does not affect the central bank of CBDCs.

In particular, the two-tier design includes not only the continued development and security of existing technologies, but also the placement of new distributed technologies by making the two divisions of technology similar, equal, incremental, and interchangeable. The competition selects the best.

Scenario 2: Wholesale Payments

The CBDC experiment currently underway in many countries is primarily focused on wholesale events and generally relies on blockchain technology. For example, the Jasper project in Canada is experimenting with high-end payments based on blockchain technology, and the Ubin project in Singapore is measuring the impact of payments and contracts in the digital form of dollar tokens on the distribution list. The financial and financial institution Stella of Japan aims to study the application of digital technology (DLT) in the financial sector and to examine some of the functions that allow existing payments to work securely and efficiently in an environment DLT.

Two LionRock projects in Hong Kong, China and the Inthanon project in Thailand have experimented with CBDCs based on blockchain technology. The application of this blockchain technology is under the central direction and strict control of the bank. Take, for example, the Ubin project in Singapore, which received the same Digital Deposit Receipt (DDR) template as the Jasper project in Canada. Singapore's existing electronic payment system (MEPS), Singapore RTGS, is launching special DDR loans to support DDR broadcasting. Put the RTGS number in the RTGS account to transfer money to the DDR mortgage lender on a responsible basis, and create a DDR equivalent to a distribution slip and send it to any DDR bank wallet to involve banks. Changes and Payments Announced.

At the end of the day, the distribution server sends the network communication data to MEPS, which adjusts the balance of the DDR loan balances to match the DDR balance of the DLT network share. It can be seen that the distribution of data distribution and existing tasks in the middle of the financial system are not unique, but can be shared and accomplished individually. . Meanwhile, the blockchain-based DDR payment system brings great additions to existing payments and settlements by providing new payment methods for existing non-existent RTGS of existing funds.

On the other hand, DDR is an extension of the digital form of electronic fiat money through RTGS, and finally it can be converted into RTGS value on account and determined by the RTGS system. It can be organically integrated into existing payments.

In addition, DDR is generated by 100% investment and does not affect income, so the distribution of data does not affect the financial institution as a whole. Clearly, from one perspective, a new central bank-dominated blockchain-based payment system is entirely possible.

In practice, by referring to the digital deposit model of the Ubin project, many payment companies and enterprises can collaboratively create private financial peer-to-peer networks without relying on intermediary lines such as online payments. The network is connected and paid. Since the market performance of blockchain technology production is still at an evolving stage, the above industry needs to be realized at the wholesale level. Blockchain decentralization means eliminating the middle class, but not the middle class. In a federal blockchain domain, central banks and other regulators will centrally control the operations and risks posed by blockchain, as well as know how to access external controls.

Scenario 3: Cash digitization

While cash digitization and reserve digitization (e.g. digital deposit receipts described above) do not occur differently in meaning, the former is for the public and the latter is limited to interbank travel but is centralized through public access. By opening accounts with the central bank, banks face significant advantages and can lead to changes in deposits, which makes banks tighter. One solution is the 100% sample size.

The agency maintains a 100% deposit account at the central bank and provides digital equivalents of these funds to its account book, which can be considered the digital bank. IMF financial experts refer to it as Electronic Money Banking Digital Currency (sCBDC). According to, after depositing 100% of the savings of a third-party payment company into the Korean banking system, the virtual account money became the bank's digital currency capital. On the contrary, China has long been the first major force in the world to realize the digitization of fiat currency.

However, this idea is damaged. First, 100% preparing temperature should be attached to traditional budget, especially the operational account of traditional, cycling and the other Life's. In addition to the update of circulating CBDC accounts, you have to take a complaint of the account removal and providing the service management and provides interaction services. This is not to increase an increase and the lawn of the bank in the middle, but it is not difficult to make the needs of "Counting to record the law". The second is controlled. Central banks and drivers have tightly while tour circulation, and banks still start. Especially, if the payment is employed by the agent, the bank is not eligible to control the amount of money. Adjust the cause for CBDC.

Seeing a decision decisively and looking at it from a different perspective can make all the difference. Now, when it comes to CBDCs, there is always a concern about invalid submissions as many people understand the familiar process of CBDCs regarding announcements from the bank to banks to corporates and from corporates to exporters to individuals . When the fiat currency needs to go through the printing process and the necessary coins, the numerical advantages of "printing and coins" can be obtained in a fraction of both without any restrictions, which is better.

From a bottom-up perspective, you may be surprised that end-users of digital benefits have the idea of ​​"exchange" rather than "advertisement". There are several deposits that can be exchanged for CBDC. Therefore, from this point of view, the issue of fraudulent remittances is not significant, and CBDC exchanges by the exchange agency are the result of users exchanging real money with real money real, not the limit issued by the bank. . Central banks only collect and review information influenced by international thinking.

In fact, for now, even if it is a standalone token or a CBDC developed in many countries, it is very important that it is more of an exchange of ideas than of a detail of problems. These points are important in fiscal policy, indicating that there are no significant changes, and somehow the real money can be eliminated and the process can be developed easily. Improve a lot. . A simplified version of CBDC can be prepared according to the exchange below. The main idea is that the first consumer starts the business, the consumer spends the CBDC exchange and entrusts it to the working organization. The agency collects user records for the CBDC and compiles a separate list for each client.

After receiving the exchange and escrow request from the CBDC client, the agent collects the money or deducts the deposit from the client, enters the CBDC account into the client account in detail and sends the money back to the central bank or deduct the deposit. , and stored at the central bank. The banking company collects the general data of the organization, which is the concept of the total budget, and develops a two-step general ledger model with detailed information about the work.

If a CBDC settlement occurs between clients of the same organization, all you have to do is change the owner of the organization's second record without changing the bank account in a financial company. In the case of CBDC settlement of organizations, the organization does this first, and the transfer of CBDC membership is completed in a detailed ledger case. Mechanisms such as continuous net repositioning and liquidity savings (LSM) can be considered to increase efficiency and reduce risk.

This plan has the following advantages:

First, it is clear that holders have full control of the CBDC. No other organization may use the CBDC without the owner's signature or consent. This allows CBDCs to have a higher cash flow than cash deposits.

Second, the intermediary bank does not create separate data for the primary consumer. In other words, the public does not “open an account” with the central bank. It recognizes the need for a “loose account pairing” CBDC system independent of the RTGS system.

The third is that each business organization can create its own digital currency organization based on its own understanding and compliance with integration standards, which is good for competitiveness and easy for customers to choose. Since they changed as needed rather than given by schedule, there is no concern about the stated benefits of the process. In addition, when the simple consumer product data is only stored at the middle level and not in the banking financial institutions for policy or management purposes, the central bank has the right to delete the content data of the organizations at the next level. To operate in a distributed system, centralized management must be done on a case-by-case basis.

epilogue

As new technologies emerge that may become financially viable in the future, for the dual model of medium and large enterprises, blockchain can help reach markets without impacting central management. This paper shows that the decentralized nature of blockchain technology can be integrated into CBDC market capitalization and central bank management through three events. Blockchain technology can be used for CBDC credentials to identify CBDC credentials and ensure that they are authentic.

Experiences in many countries on the wholesale side scenario have shown that CBDCs and payment systems based on blockchain technology are possible. In the realm of cash digitization, this paper argues that this is why CBDC R&D initiatives are currently ignoring the benefits of working in the management industry. In this regard, this document announces the new work plan of the CBDC which simultaneously achieves the goal of "centralized management and market economy" from the bottom line. exchanging "thoughts. .

"Things do not exist in things", "what is above metaphysics is the Tao, which in the lower form is an instrument, and the Tao controls the instrument", such are the wonders of the ancients Chinese philosophers. Centralized management and division of labor have always had to be taken into account in discourse and collaboration. Currently, many countries are rapidly experimenting with digital experiences based on central bank blockchain technology, and the content includes many issues such as privacy, information security, business, self-certification, certificate payment and payment. - Payment. As blockchain is a new technology, there are some flaws and shortcomings, but that's not the only reason why it can be released so easily. Facebook's Libra project has already created a new generation of secure, scalable, and reliable blockchain-based financial infrastructure, all with new approaches and new challenges.