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Legal tender is rising sharply. Central banks around the world are catching up with each other.

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The central bank’s digital currency continues to heat up around the world, and many countries have stepped up the pace of research and development and layout of digital currency recently. It is reported that on July 20, the Group of Seven (G7) basically decided to cooperate on the issue of (CBDC), a digital currency of the central bank, and planned to hold further discussions at the G7 summit to be held in the United States from the end of August to the first ten days of September.

The digital money work teams of major central banks around the world have been set up one after another. On July 20, the Bank of Japan set up a new “Digital currency Unit” in the Bureau of Clearing institutions, focusing on the digital currency issued by the central bank and exploring how to build the best settlement system in the digital society.

Earlier, the Bank of Korea announced the establishment of the Bank of Korea Digital money legal Advisory Group to establish the legal and technical basis for its digital currency issuance in order to respond more flexibly to the rapidly changing global payment environment.

In January this year, the G7 formally jointly established the Central Bank Digital money Group, which includes the central banks of several major economies in Europe, Asia and North America.

Digital currencies in some countries are accelerating into the testing and testing phase. The Bank of France announced on July 20 that eight companies, including HSBC, Accenture and Societe Generale, had been shortlisted for its digital currency pilot scheme. Eight companies will jointly explore ways to convert financial instruments into central bank currencies and improve their cross-border payment conditions for some time to come.

The Bank of France said that the enthusiasm of companies to participate in the experiment reflected the strong interest of financial and technical participants in exploring central bank digital currencies to improve financial markets, and that, the experiences and lessons learned from the experiment will help promote the construction of a global digital currency centered on the euro system.

In July this year, the Bank of Thailand began to use digital currency to conduct financial transactions with some large enterprises. This marks that the central bank has entered the third phase of digital baht development. The Bank of Thailand also plans to test digital currency transactions with the Hong Kong Monetary Authority in September.

In fact, the major central banks around the world have been studying and exploring the new “battlefield” of digital currency for some time. Huachuang Securities said that in 2019, more than 80% of central banks have participated in digital currency research, more than 40% of central banks have entered the digital currency pilot stage, and nearly 10% of central banks have nearly landed. Since the beginning of this year, central banks have accelerated the competition in the field of digital money.

The process of digital currency in China is also continuing to advance. In recent years, the people’s Bank of China has established the Institute of Digital currency, which has continuously made new achievements in the research and development of legal digital currency. At present, the people’s Bank of China has tested the commercial application scenario of digital currency, and Alipay, Meituan, Didi, bilibili, Byte Jump and other companies have all cooperated with the Digital currency Project Bank of the people’s Bank of China.

In the eyes of people in the industry, the layout of the digital currency field in advance will have the effect of “listening to thunder in a silent place”.

“Digital currency is likely to become the monetary paradigm of the next generation, and the layout of digital currency is also a preparation for better coping with the changes in the international payment and settlement system in the future.” Xue Hongyan, deputy director of the SUNING Institute of Finance, told the Shanghai Securities News that he was “prepared” for the advance layout of this field.

From the perspective of international competition, Xue Hongyan believes that the current escalation of international competition in the field of legal tender is also a “plan in advance” for central banks to avoid losses due to technological backwardness in the future.

Huachuang Securities believes that the development of digital currency will be one of the important main lines of global financial technology in the future, or will change the existing international payment system.

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