Four misunderstandings of digital currency -Part 7

Does digital foreign exchange mean global currency unification?

The use of digital technology to bridge sovereign currencies to achieve international exchange has become more mature in technology. There are two main risks: the first is regulatory compliance. The legal risks and the financial risks that arise therefrom are very high, especially after the inclusion of sovereign currencies in a unified, non-bank digital international exchange system, the structural impact caused by local compliance risks It will also be difficult to resist.

Undoubtedly, the risk pressure of the digital exchange system will increase sharply, and its risk management and control capabilities will face serious challenges. The digital exchange system intends to delay or resolve this challenge, which will force it to choose and adopt a strategy similar to bank exchange. The homogenization strategy weakens its competitiveness. Even so, when encountering common risks, the impact and pressure on the digital exchange system will undoubtedly be greater. At present, the digital economy is in the ascendant, and international exchange is also facing huge opportunities for digitalization. However, the global economic development is far from mature to the stage of seeking integration or even currency integration; besides, economic globalization is facing severe challenges and major adjustments. At this stage, the digitization of foreign exchange driven by the digitization of international exchanges, the search for the digital unification of sovereign currencies, or even the establishment of a single global digital currency system, is not about daring to innovate ahead of time, but completely divorced from reality and forced to launch. Not only is it very fragile, but also at the risk of a fundamental imbalance.