To heaven: the market logic of encrypted currency, the regulatory dilemma of stable currency and the re-engineering of global financial ecology
Author: Journal of Economic Management
Overview of views:
In recent times, the encrypted currency has fallen, the third most stable currency in the worldUSDe happensShortGet off the anchorThat's rightRisks such as high leverage of encrypted assets, liquidity vacuumDiscussionI don't know. In response, the Associate Professor and Ph.D. student mentor of the Department of Finance of the Guanghua School of Management of Beijing University, based on his cutting-edge academic research, analysed the market logic and technological core of the distribution of encrypted currency for the participants. His share covers the basics of decentrization, economic models of different types of encrypted currency, and the stability of current hotspotsAll rightRegulation at stakeTrade-offs andOtherRelationship with the United States dollar monetary systemThis provides a clear academic framework for understanding this complex area。
According to Beijing University, Guanghua School of ManagementAssociate Professor of Finance and Doctoral Teacher of JapanThe keynote address was organized at the eighth event of the Great Guanghua North scholar Sharon。
I. Rapid development of the digital economy in our country has shown dynamism and unlimited potential
Current total market value of encrypted currency marketsThree7trillions of dollars, of which bitcoin is close60%, WITH ABSOLUTE DOMINANCE, APPROXIMATELY 15% OF THE TOTAL, TOGETHER CONSTITUTING THE CORE MARKET PATTERN. THE THIRD-RANKED TEDACOIN (USDT) IS THE LARGEST STABLE CURRENCY, MAINTAINING PRICE STABILITY THROUGH THE UNITED STATES DOLLAR ANCHORI don't know。From the bottom of the technologyBased onEncryption CurrencyTransactionsThe core is achieved through distributed bookkeeping“Decentreization”, i.e. replacing credit endorsements of a single centralized institution with multi-point consensus, significantly increasing the difficulty and cost of data manipulation, with traditional finance based on bank creditSystemThere's a fundamental differenceI don't know。Yestransaction application level toUSDST, USDC IS THE STABLE CURRENCYBecauseIts anchoring characteristics have become actual transactionsYesMainCirculation media, the volume of daily transactions is much higher than that of unstable currencies. However, from the technical structure, the block chain system is"to centralize"andEfficiencyIt's not the same. There's a natural trade-off:For example:The Layer 1 network (e.g., bitcoin) has a high emphasis on security and resilience, but has limited capacity to deal with it; this has led to a Layer 2 solution by moving transactionsSecond layer of chainProcessing, processingPassMain chainRecording lettersThis approach, which seeks to enhance scalability while maintaining a trust base, has been the focus of technological evolution and capital investment in recent years。
In the case of unencumbered assets (e.g. bitcoin and ethercoins) issued, it is not possible to use the use of the use of the word "punishment"HoldersThe key to facingThe risk isDilution effect. The proliferation of new currencies in each unit reduces the marginal utility of existing holders, thereby affecting the long-term value of the currency. It was indicated to the Professor that when private issuers lacked external regulatory controls, the supply strategy was generally “high up-front and declining later”. Such actsand sovereign currencyYesBest supply strategy, the Friedman CodeThe Friedman Rule)I don't knowThis is a clear differenceBehind it is..PrivateReleaseSubjectTo pursue yourselfProfitNot the general welfareYesMaximizeI don't know。
In additionCurrencyYesThe degree of decentralisation directly affects itPresetSupplyPolicyCredibility. Studies show that the more the currency addresses are distributed (e.g. bitcoin), the more the distribution strategy isMaybeIt's not easy to get closer to the algorithmic rulesA few giant whales in currencyWhalesManipulationOr it's agreedEffects of the fork; a highly centralized currency holding structure mayIncreaseSupplyAny changeRiskincrease market volatility and speculationBehaviourI don't know。
II. Mortgage mechanisms for currency stabilization, price stability and regulatory trade-offs
Unlike collateral-free coins, which are supported by reserve assets at the bottom, the central objective is to maintain a stable payment relationship between the value of the currency and the moored currency (e.g. the United States dollar). The current mainstream stabilization currency can be divided into two categories:OneYesThe USDT represents a “partial reserve model” in which the asset pool contains high-yielding but volatile assets such as corporate debt, encrypted currency, and resists potential payment risk through over-collateralization。Two byTHE “FULL RESERVE MODEL” REPRESENTED BY USDC IS A LOW-RISK CASH AND SHORT-TERM TREASURY DEBT WITH RESERVE ASSETS。
The blogger says:For Partial Reserve ModeStable currencyI don't knowThe issuer's capital adequacy rate is a key factor in maintaining price stability. When the market is under pressure to sell, the issuer needs to use his own capital to buy back the currency, if the capitalNot enough, it could triggerDe-peg crisis. In the meantimePrivateReleaseSubjectAnd the profit-maximizing opportunities drive itA trade-off between “assets risk-procedure income” requires that they hold only low-risk assets (e.g. US dollars)The Genius Act)Private issuersPossible by increasing transaction ratesand reduction of interest rates on currency holdingsRedressing the loss of earnings ultimately results in a decline in user benefits。
This mechanism is also linked toBankUnder supervisionAboutNarrow BankingYesThe debate echoes。PureLimit the types of reserve assetsYesReducing liquidity riskI don't know. However, if there is a lack of regulation of private issuers, there is a lack of regulation of private issuersYeahMaybeIncentives for issuers to raise feesTo make up for itReserve assetsEndProfitLossesI don't know. Therefore, regulators need toThe balance between “asset class limits” and “capital adequacy requirements” is sought to achieve a balance between systemic stability and market dynamism。
III. Financial ecological impact of encrypted currencies and future challenges
The widespread use of encrypted currencies has had a structural impact on the global financial system. In the area of cross-border payments and asset flows, the currency of stability is based on itsTHE CHARACTERISTICS OF 24-HOUR TRADING, HIGH LIQUIDITY, HAVE BECOME IMPORTANT TOOLS IN THE CHAIN OF “REAL WORLD ASSETS” (RWAS), SUCH AS INCREASING TRANSACTION EFFICIENCY THROUGH TOKENIZATION OF LOW LIQUIDITY ASSETS SUCH AS BONDS AND REAL ESTATE. HOWEVER, FOR THE TIME BEINGUnited States dollarsStable currency at the global levelVirtual assetsPercentage of transactionsIt's a big deal. It's even bigger than the dollarAssetsTransactionsPercentage ofI don't know。In addition, in some parts of the countryThe United States dollar stabilization currency has also started to be traded for physical assets。The blogger says:In the view of usersUnited States dollar stable currency versus United States dollar itselfDirect replacement existsRelationsI don't know。But..Under Partial Reserve ModeI don't knowUnited States dollar stable currencyMaybeTo become new by matching dollar and risk assets“Risk-revenue” financial instrumentsEnhanced UserRequirements for United States dollarsI don't knowFurther strengthening the dominance of the United States dollar in international settlement challenges the strategy of internationalization of non-United States dollar currencies。
From the perspective of financial stability, the rapid development of encrypted currencies (especially stable currencies) may divert traditional commercial bank deposits, alter the allocation structure and interfere with monetary policy transmission mechanisms. In addition, in capital-regulated economies• The openness and anonymity of public-chain encrypted currencies may increase the risk of capital flight, so their development must be coordinated with domestic financial regulatory frameworksTo strike a balance between development and security。
In his summary, the professor highlighted the lack of consistency between the issuance of tokens by private institutions and social welfare objectives, and the availability of block chain technologyThe “code or rule” commitment, while to some extent inhibiting indiscriminateness, cannot fundamentally address incentive distortions. In the future, how to encourage technological innovation while creating regulatory paradigms that are compatible with real economic development objectives will be a central issue for policymakers in countries。