The Development of Private Digital Currency in China and Its Enlightenment to the Promotion of Legal Digital Currency

Abstract

With the rapid development of global financial technology, legal digital currency will become an important form of currency in the future. At present, the central bank is committed to the development of legal digital currency in China, and has carried out experiments on relevant platforms. Legal digital currency is a new thing and lacks successful experience that can be used for reference. Therefore, the analysis and Research on the potential risks of private digital currency and a clear understanding of the shortcomings of China's current response to the risks of private digital currency are important prerequisites for the steady development of China's legal digital currency. Firstly, it expounds the concept and classification of digital currency, then analyzes the development and supervision status of private digital currency in China and other countries around the world, points out the shortcomings of China's response to the risk of private digital currency, and finally puts forward the enlightenment and suggestions for the issuance of legal digital currency in China. There are some problems in private digital currency, such as unclear legal attributes and tax policies, non-standard trading platforms, lack of consumer protection, and weak international cooperation. China should pay attention to the above problems when promoting the development of legal digital currency. Specifically, we should clarify the legal attribute of digital currency; Build a complete digital currency supervision system; Improve the digital currency tax policy; Standardize the digital currency trading platform; Building an anti-money laundering mechanism; Strengthen the protection of consumers' rights and interests; Strengthen international digital currency cooperation.