Research On The Supervisory System Of Digital Currency

With the development of payment system,the monetary forms are changing all the time.The requirement of efficient payment in modern society created a multi-level payment system,meanwhile the negative effects are becoming more and more obvious.Exclusive competition between different payment platforms not only leads to the barrier of data circulation,but also increases the additional burden for financial consumers to obtain payment services.Digital currency provides a new way to break the platform barrier in the field of payment and enhance the service experience of financial consumers.However,due to the sharp price fluctuation,the vague legal characterization and the dislocation of the supervision of various countries,not only the legitimate rights of currency holders are difficult to be relief,but also impacted the stability of the financial system.At present,the supervision in terms of innovation promotion,risk prevention and consumer rights protection is the mainstream trend in the international community.The extraterritorial experience of sandbox supervision and functional supervision provides a reference to regulatory experience for digital currency.Considering the practice of digital currency supervision in China,it’s easy to find that the "one-size-fits-all" model is not only inconsistent with the development of digital currency,but also hinders the pace of digital currency innovation.The construction of China’s digital currency supervision system needs to correct the current control mode,in order to accommodate the prudent regulatory concept of flexible application of multiple regulatory principles,expand the scope of the subject of supervision,the implementation of market access,information disclosure and other regulatory mechanisms,in order to achieve the orderly development of digital currency and solid innovation.In addition to the Introduction and Conclusion,the paper is mainly divided into the following five parts:The first part is the analysis of the connotation and nature of digital currency,the main content lies in the general investigation of the concept and legal attributes of digital currency.Through the different perspectives of coverage,distribution technology and distribution subject,the connotation of digital currency is defined,so as to clarify the fundamental difference between digital currency and virtual currency and electronic currency,and realize the logical self-consistency of digital currency itself.At the same time,according to the difference of intrinsic attribute in the digital currency structure,it is characterized as monetary and financial assets respectively,which lays a foundation for the classification supervision below.The second part is the necessity of digital currency supervision and its institutional structure.By analyzing the special value of digital currency in reducing costs and promoting inclusive financial development,as well as the risk of foreign exchange control caused by the absence of supervision,shadow currency risk,etc.,it provides the necessary evidence for the supervision of digital currency.At the same time,combined with the related concepts of financial supervision,this paper constructs the basic model of digital currency supervision from four aspects of supervision idea,supervision principle,supervision subject and supervision means.The third part is the extraterritorial investigation and reference of the digital currency supervision system,which focuses on the introduction and reference of the experience of the extraterritorial digital currency supervision.By examining the regulatory experience of Britain and the United States,This paper explores the sandbox regulation in the Britain,which is characterized by providing legal trial space,and the functional regulatory model with comprehensive risk prevention and control as the core.The fourth part is the present situation and existing problems of digital currency supervision in China.Through the analysis of the present situation of digital currency supervision in China,this paper excavates the shortcomings of China’s digital currency supervision system in the aspects of concept guidance,subject scope and supervision means.The fifth part is the suggestions of constructing China’s digital currency supervision system.First of all,the concept of supervision is inclusive of prudence,giving digital currency a certain space for development.Secondly,in principle,supervision adheres to the emphasis on innovation and development,the protection of consumer rights and international co-governance.Thirdly,self-regulation and social supervision are introduced into the subject of supervision.Finally,in the specific supervision mechanism design,strict market access,strengthen information disclosure and so on.