The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Just in the past few years, central bank digital currencies have gradually been implemented, and digital currencies have slowly begun to enter the public eye. We know that digital currency is actually a decentralized virtual asset that is not managed by central banks, credit institutions, electronic money institutions, etc. It is not linked to legal currency and is transferred electronically. It can also be used as a means of payment and storage transactions. wait. But the central bank's digital currency is a digital currency issued by the People's Bank of China and operated by designated operating agencies. It is equivalent to banknotes and coins. So what is the difference between digital currency and central bank digital currency? Let the editor of the currency circle tell you about it below.

 The difference between digital currency and central bank digital currency

Although there is a two-word difference between the two, they are completely different concepts.

First of all, in terms of the definition of credit risk, digital currency has no issuing entity and relies on blockchain technology to achieve credit risk management, while central bank digital currency is issued by the People's Bank of China, and the central bank assumes all credit risks. The central bank's digital currency is RMB in digital form. It has the same value as RMB banknotes. The value of digital currency is unstable. It is generally agreed that it is regarded as an investment, just like gold value investment. In fact, it is an alternative investment. Its projects are more and more popular. If there is value, the value of the token will be higher.

Then there is the most important anonymity. Cryptocurrency is stronger. Because of its strong confidentiality, it has become a channel for some criminals to launder money. The controllable anonymity of central bank digital currency is that only the central bank can find the information, and the information is also very private. This will make it easier for the central bank to combat problems such as money laundering and only target criminals. However, blockchain technology is still worthy of recognition. Therefore, many government financial institutions have introduced blockchain technology into practical applications to realize the digitization, automation, and intelligence of regulatory rules, and use smart contracts to complete real-time supervision and data sharing, which in turn has improved the efficiency of financial institutions. and regulatory authorities’ anti-money laundering levels.

 Comparison between digital currency and central bank digital currency

·Core features of encrypted digital currency:

Decentralization: There is no issuing entity, and it does not rely on the support or credit guarantee of institutions such as the central bank and government. Its issuance only relies on information technology, cryptographic algorithms, network protocols, etc., and cannot be controlled by any person or institution, so the theory to avoid artificial inflation;;

Anonymity: Digital currency transactions can be anonymous, remote point-to-point payment, without any trusted third party as an intermediary, the user's identity information is rarely involved in the transaction process, and the two parties can even complete the transaction without being completely strangers. There is no need to trust each other, so anonymity is high and privacy can be protected;

Low transaction costs and fast speed: Compared with traditional bank transfers, remittances, etc., digital currency transactions do not require payment to third parties, and transaction costs are lower, especially compared with high cross-border payments to third-party service providers. Handling fee.

·Core features of central bank digital currency:

Equivalent to cash banknotes: You can understand that this central bank digital currency is our real cash, has exactly the same value, and has all the functions of general currency (value scale, means of circulation, means of payment and store of value);

Two-tier operation system: that is, after the People's Bank of China issues digital currency, designated banks or other operating institutions participate in the operation, and then these institutions exchange it for the public;

Centralized management model: Credit guaranteed by the central bank, with unlimited legal reimbursement, but relevant blockchain technology will be used for traceability and data storage;

Controllable anonymity: ensuring tracking capabilities in combating money laundering, terrorist financing, and tax evasion;

Can be collected in real time: currency creation, flow and other data are updated in real time.

The above content is the difference between digital currency and central bank digital currency introduced by the editor of the currency circle. Through the above introduction, we also understand that central bank electronic currency is essentially the same as banknotes because they are both issued by the central bank and have credit endorsement by the national government. It is a centralized currency. The advantage of the central bank's electronic currency is that it is very convenient and fast, with low cost and almost zero loss. It is very beneficial to suppress various black and gray industries and corruption, and is very easy to review. But its shortcomings are also obvious, that is, its privacy and security. We have almost no privacy when using this currency, and whether we can have an absolutely safe network environment is also a problem.