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What Impact Will Legal Digital Currency Have (Legal Nature of Legal Digital Currency)

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What impact will legal digital currency have? To what extent will legal digital

What Impact Will Legal Digital Currency Have (Legal Nature of Legal Digital Currency)

What impact will legal digital currency have? To what extent will legal digital currency bring changes?

1. In the economic system, the issued and circulated digital currency is a sovereign credit endorsement electronic cash issued by the People’s Bank of China, which is the main liability of the central bank. It will be supported or authorized by the state as reserve assets and managed by the central bank.

2. In the financial field, the issued or circulated digital currency has the same functions as other payment methods, including value transfer function (such as exchanging for legal tender).

3. For cross-border payments: realizing instant transfer of funds through blockchain technology, and so on.

Legal Nature of Legal Digital Currency

The legal nature of legal digital currency determines that it is a form of electronic cash with legal discharge characteristics. According to Article 18 of the General Principles of the Civil Law of the People’s Republic of China, any unit or individual shall not refuse to accept, return, or exchange virtual goods and services such as RMB; those who sell tokens and engage in other activities to the public without obtaining authorization from the People’s Bank of China shall bear liability for compensation for the property or rights and interests of those who have not obtained authorization to use and shall not constitute a criminal act unless approved by the People’s Bank of China for circulation.

Legal currency has the endorsement of national sovereignty credit and is issued by the central bank. To some extent, it can represent a new financial system, but it also needs to comply with certain regulatory requirements. (China Business News)

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