Dong Ximiao: Digital RMB can buy gold and can be exchanged for foreign exchange

Recently, a saying on the Internet has said that digital RMB cannot be exchanged for gold and foreign exchange. In this regard, Dong Ximiao, chief researcher at Zhaocian Financial, pointed out that this statement is incorrect. Digital RMB is a legal currency in my country, which is equivalent to the real RMB (paper banknotes and coins). Essence Paper and coins can buy gold and exchange foreign exchange, and digital RMB can also be.

The White Paper of the R & D Progress of China Digital RMB "shows that digital RMB is the legal currency of the digital form issued by the People's Bank of China. It is involved in the operation of the designated operating institution. Based Price, value characteristics and legal compensation. Dong Ximiao explained that the lawfulness means that all the public and private debt in my country will be paid by digital RMB, and any unit or individual shall not refuse to accept it without receiving conditions.

Dong Ximiao pointed out that digital RMB is mainly positioned in cash (M0) in circulation. Like the real RMB, the central bank is the public debt of the public. The two have the same legal status and economic value. Therefore, the functions of the real RMB are also available for digital RMB. Therefore, under the premise of conforming to the national foreign exchange management policy, digital RMB can be exchanged for foreign exchange; digital RMB can also buy gold, whether it is paper gold or physical gold.

"As for the Internet, there is a point of view that digital RMB cannot be exchanged for gold. In fact, it is stealing the concept." Dong Ximiao said that it cannot be directly exchanged for gold banknotes, and digital RMB cannot be directly exchanged for gold. "". Dong Ximiao explained that in 1971, the US government announced that the US dollar was completely decoupled with gold, marking that human society has since entered the era of pure credit currency. Credit currency is a currency stipulated by national laws and forced circulation. It is not based on any precious metal and does not support direct exchanges of precious metals. At present, the currency issued by countries in the world is basically a credit currency.

As early as October 2020, Mu Changchun, director of the Digital Currency Research Institute of the People's Bank of China, clarified that digital RMB can be purchased or redeemed. This shows very clearly that digital RMB cannot be purchased by gold and cannot be exchanged for foreign exchange. Dong Ximiao emphasized that under the circumstances of technical conditions, the function and scope of use of digital RMB are consistent with the real RMB.

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