The Virtual Currency And Its Influence On Monetary Policy

Virtual currency is a new form of money come with the development of internet technology in recent years. What type of financial intrinsic attributes it has? Can it be influence on monetary policy? And how does it exert influence on monetary policy? All these questions become hot spot issues in academic world of late years.Based on current situation, this paper discussed its financial intrinsic attributes, and regarded it as "Complementary currency" and "Private currency", and then, discriminated it from the legal money and electronic money; thereby avoid the conceptual confusion in them. On this basis, the paper researched the interactive relationship between virtual currency and the real world, and came to the conclusion that only those virtual currencies which can be exchanged to real currency bilaterally could influence the real world. Then the paper discussed how it exerts the influence on monetary policy under the presumption that the scale of virtual currency is big enough to exert this influence.There are five chapters in this paper besides introduction. Chapter one discussed the concept of virtual currency and analyzed the causes of it. In this chapter the paper restricted the research object on initial virtual currency, and analyzed the causes of it by the angle that lower transaction cost can bring the transformation of money form. Chapter two draw the conclusion that virtual currency has the intrinsic attributes of "Complementary currency" and "Private currency", thus, avoided the conceptual confusion among the virtual currency, legal money and electronic money. Chapter three reviewed the issue, circulation and withdrawal of virtual currency, and come to the conclusion that only those virtual currencies which can be exchanged to real currency bilaterally could influence the monetary policy of the real world, and the specific influence was discussed in chapter four. In the end of paper was summarize and policy proposal.