News on October 24th, why does the digital RMB adhere to the “two-tier system”? How to confirm the stability of digital currency? Can the use of digital currencies for cross-border payments circumvent the exchange rate issue? In response to these issues, Zhou Xiaochuan, the former governor of the People’s Bank of China, gave a detailed interpretation at the Financial Street Forum. Zhou Xiaochuan said that the function of digital currency is naturally related to the function of traditional currency.
There are three main functions: payment function, pricing function, and storage function. Therefore, digital currencies have different development directions. What I want to emphasize is that the payment function is the most basic and fundamental. If the currency does not have a payment function, no one will use this currency for pricing, and the storage function will be greatly reduced. Therefore, this is also the direction that digital currency development should strive for.