Digital currency (DC/EP) is the abbreviation of electronic payment in digital currency.
Extended data:
The IMF calls digital currency the central bank CBDC, which means "digital currency of the Central Bank" in English. DC/EP is a unique English expression developed and used by the Bank of China. They actually describe the same concept.
Compared with cash, digital currency, as the central bank, can save the whole production process of paper-making, printing, cutting, storage and transportation of physical currency, reduce the issuance and circulation costs of traditional paper money, and thus enhance the convenience of economic transactions.
In addition, due to various technical guarantees including cryptographic algorithms, the anti-counterfeiting cost of digital currency-Central Bank has also been greatly reduced.
Investment opportunities brought by digital currency
Guotai Junan Computer Team based on digital currency's three unique technical approaches, from digital currency's uncertain concept, correspondingly excavated three relatively certain investment main lines.
First of all, the two-tier business structure is expected to give birth to the new demand of banks for IT systems. As a part of the two-tier architecture, commercial banks can not complete and maintain the operation of this system by one bank alone, and need professional IT service providers to build this huge and stable system, which is both a challenge and an opportunity for IT service providers. As the five major banks are the backbone of the bank, it is recommended to give priority to the core system solution providers of the five major banks.
Second, the dual off-line function is expected to create the update demand of machine tools. Most existing clients, such as POS machines and ATM machines, can't meet the needs of digital currency system. The incompatibility between the system and the machine is risky, and the demand for updating is great. Wallet service and payment service providers are expected to usher in opportunities.
Third, there is a demand for research and development of key related technologies. According to the patent application submitted by the Monetary Research Institute of the Central Bank, the patents in the process of delivery, circulation and extraction in digital currency involve key parts, and listed companies related to security encryption and KYC certification are expected to benefit.