Research On Payment And Settlement Risk Of China's Central Bank Digital Currency Issuance

In the history of mankind,money has played a major role in the development of social economy.In the 21st century,with the continuous innovation in the financial field and the continuous development of Internet technology,the currency began to develop electronically and digitally.The emergence of digital currency marks the beginning of a new historical stage in the development of currency.Central banks of various countries have gradually paid more attention to the study of digital currency.Most central banks including China are preparing to issue central bank digital currency to replace the traditional credit currency.As a newcomer,research on the field of central bank digital currency is still in its infancy.From the perspective of payment economics,this paper argues that central bank digital currency as a payment instrument will undoubtedly have a huge impact on China's payment settlement system and its risks.Payment economics believes that the form of' currency is adopted by the society for the needs of payment transactions.Only those currencies that meet certain characteristics will be adopted by people.The excellent characteristics of central bank digital currency make it more convenient for people.The means of payment are needed.First of all,this article briefly introduces the history of monetary development.and the emergence of' central bank digital currency depends on the conditions of social and economic development.Second,payment economics believes that to become a payment instrument,a currency must meet people's needs in terms of record maintenance,portability,etc.,and the central bank digital currency is superior to today's credit currency in these functions.Changes in payment instruments will inevitably affect the payment and settlement system.Payment and settlement systems often have credit risk,liquidity risk and operational risk.This paper summarizes the various risks in China's current payment and settlement system,and points out the problems.The central bank digital currency,on the other hand,plays a significant role in improving the risk in the payment settlement system.Thirdly,as a new thing,the central bank digital currency will inevitably have an impact on the existing social and economic structure.How to issue it and how it fits into the existing payment settlement will challenge the smooth issuing of the central hank digital currency by the central bank.These issues should also be given priority in future research.Finally,based on the combination of theoretical analysis and China's national conditions,this paper proposes a policy proposal to solve the possible problems of the payment and settlement system under the central bank digital currency.