The Inertia Effect Of Legal Digital Currency And Its Influence On RMB Internationalization

The internationalization of RMB refers to the ability of RMB to realize currency pricing,exchange,and reserve functions across national borders.In the traditional sense,Factors such as economic scale,international trade are important reasons for currency internationalization.This article conducts an in-depth analysis of the current factors restricting the internationalization of the RMB and finds that under the Jamaican system,the US dollar still holds the powers of commodity pricing,international trade payment and settlement,global monetary policy,and other powers when these powers show a tendency to flow out.Various forms of sanctions.These monetary powers and sanctions have made international market entities spontaneously or forced to accept the U.S.dollar,forming inertial dependence on the use of U.S.dollars by other countries.As the renminbi is a new entrant in the world currency market,monetary inertia has become its main constraint.On the one hand,the higher transaction costs brought about by the performance of limited network externalities have to some extent dissipated the enthusiasm of the world's renminbi;on the other hand,the fluctuation of the renminbi currency value and the efficiency of the financial market also affect the confidence of the international market in the renminbi.The results show that network externality,currency stability and financial market development are indeed important factors affecting the internationalization of a country's currency.The issuance and circulation of legal digital currency can produce network externality effect,currency value stability effect and financial market development effect in the currency inertia of RMB.Through the above three effects,legal digital currency is expected to help the development of RMB internationalization.In the future,China should rely on legal digital currencies to improve the ability to innovate and use macroeconomic policies internally,improve the efficiency of financial markets,and actively participate in the construction of a new global payment and settlement system externally,and strive to build a stable andorderly international monetary system,and realize the internationalization of the RMB New breakthrough.