The Research On The Influence Of Mobile Payment Development On Currency Velocity

In recent years,the total transaction volume of Alipay and WeChat-based mobile payment platforms has grown rapidly,and there are corresponding financial risks.Therefore,considering the financial risks,both academia and the industry are paying more and more attention to the impact of the mobile payment platforms 'development.The transaction size of mobile payment industry is gradually increasing,in the meantime,it also makes people ' s daily payment more convenient.With the change of people ' s consumption habits,people have higher requirements for the convenience degree of their daily life.In the future,the technology of mobile payment will be more perfect,and the scope of using the mobile payment will continue to expand,in various scenarios,until the traditional payment method is completely replaced.It is indubitable that the mobile payment brings new challenges to the traditional monetary system and mechanism when it provides convenience to people's life.The effectiveness of monetary policy may be greatly reduced if the monetary policy is formulated without considering the impact of new payment methods.Theoretically,except the influence of the traditional money supply,it is of great value to study the mobile payment's impact on the velocity of different levels of money.From the practical sense,the construction of Chinese modern payment system is at a critical juncture in the electronic era.Taking this factor into consideration,China should also correctly recognize that the mobile payment has a huge influence on the speed of money circulation,while the mobile payment is helpful for the paying system.Appropriately recognizing its influence on the speed of money circulation will play an important role in ameliorating payment system,providing information for policymakers and fully developing the effect of economic stabilization through money policies.Based on the current rapid development of innovative mobile payment methods,this article will focus on the idea that mobile payment development will affect the velocity of money,to study the impact of mobile payment on the currency circulation speed of M0,M1 and M2.The research results show that the development of mobile payment will have impact on the velocity of money.In the short term,the mobile payment will slow down the velocity of V0,and in the long term,it will have an accelerating effect,while in the case of V1 and V2,it will slow down,and V1 is moreaffected than V2.In order to ensure the monetary system running smoothly,China should take mobile payment as one of the influential factors when formulating and implementing monetary policy.It can give fully play to the policy,and strengthen the Research on mobile payments and the development of laws and regulations.