Bitcoin reappears at $13,000. The central bank raises research and development of digital currency twice a half year

 Bitcoin reappears at $13,000. The central bank raises research and development of digital currency twice a half year

Bitcoins Active Total Market Value

On the morning of July 10, Bitcoin returned to $13,000, a two-week high. The total market value of Bitcoin rose to 64.8% of the global encryption market at $230.8 billion, a new high since April 2017.

Recently, the concept of A-share block chain has been active. On the morning of October 10, more than one block chain concept stocks opened collectively. By the end of the market, the concept index of block chain rose slightly by 0.34%. Digital certification, Heren Technology, Dreamnet Group, Shenzhen Datong and other stocks rose more than 5%.

BCtree analyst Jeffrey believes that Bitcoin traffic and market sentiment have both rebounded to this years high and will continue to rise in the short term.

Bubble reappearance, or bull market restart? The reason behind the price rise is crucial.

From the current market point of view, the price of encrypted currency soared, mainly because Facebook issued the encrypted currency Libra to improve the fundamentals, which is expected to help Bitcoin regain its glory at the end of 2017.

Facebook Libra, change the world or open the magic box?

Libras mission is to create a simple, borderless currency and a financial infrastructure that serves billions of people.

Will Libra really break away from traditional finance and become the worlds first borderless and fee-free encrypted currency?

Wang Xin said that Libra may have a significant impact on monetary policy, financial stability and even the international monetary system.

However, there are still many obstacles for Libra to become the worlds first borderless and fee-free encrypted currency. The biggest obstacle is the supervision from various countries around the world.

French Finance Minister Lemel said Libra should not be seen as a substitute for traditional currencies. It must not and cannot become a sovereign currency. Governments have the right to demand some guarantees from Facebook.

Both the governor of the Bank of England and the chairman of the Federal Reserve said Libra faced high regulatory requirements.

The central bank twice mentions the development of digital currency in half a year

However, when the main body of the state develops the digital currency, the situation will be different.

It is understood that the Peoples Bank of China is one of the first central banks to study and test digital money. Unlike most peoples understanding of digital money, the digital money issued by the central bank is actually digital French currency. Wang Xin said that the central banks digital currency is defined as M0 in China, which is a substitute for cash to a certain extent. Bitcoin and other encrypted currencies are difficult to play the role of money, can only be called encrypted assets, the impact on legal currency and monetary policy is limited.

This is the second time in nearly half a year that the Central Bank of China has publicly stated that it will promote the research and development of digital currency.

In 2014, at the initiative of Zhou Xiaochuan, then governor of the Central Bank, the Central Bank set up a special research group on the issue of digital currency to start research and development of digital currency and central bank digital currency.

In 2015, the Institute of Finance established the Internet Finance Research Center.

In May 2017, the Digital Monetary Research Institute of the Central Bank officially listed. It made a thorough study on the framework of the issuance and operation of digital money, the key technologies of digital money, the circulation environment and the legal problems it faced, in order to strengthen the research planning and overall coordination of financial science and technology work.

At present, with the approval of the State Council, the Central Bank is organizing market institutions to jointly develop DC/EP (payment instruments with digital currency characteristics).