Although it has been 6 years since the development of my country’s central bank’s digital currency, some people still don’t understand it. Last time, a netizen asked, can digital currencies be invested? This time I asked again, is there any interest? He even asked how the interest rate is reasonable? It’s really a bit baffling. It’s like Bitcoin and Huobi. Is there too little official publicity? There are many private digital currencies, but according to the question, here we only talk about the legal digital currency that will be issued by our country’s central bank. Does digital currency have interest? It can be said with certainty that if you don’t deposit it in the bank, there will be no interest at all. The official introduction also states this. Why?

To give you a vivid metaphor, does the cash in your wallet earn interest? Who gives you interest? Because you keep and use it yourself, of course there is no interest. If you want to have interest or income, you must deposit it in a bank or invest cash in capital. The principle of digital currency is the same, without any difference. Digital currency is the electronicization of RMB (notes and coins), that is, it changes from physical currency to electronic currency, but it is still cash in nature and does not generate any interest in itself. It is only used for transfers and payments. The following is a brief introduction to how the public obtains digital currency, keeps digital currency, and uses digital currency, which may be more intuitive to understand.

The central bank’s issuance of digital currency adheres to the two-tier operating principle, that is, the central bank will not directly issue digital currency to the public, but will first exchange the digital currency to Banks or other operating institutions, which then exchange them to the public. For example, current demand deposits can be converted into digital currencies from banks at a 1:1 ratio, including digital currencies transferred in by others. How to keep it? First, install the Central Bank Digital Wallet APP on your mobile phone. In the future, any digital currency exchanged or received in any form will be stored here, but this is not a bank account. To put it figuratively, a digital wallet is our wallet or safe. It completely breaks away from the limitations of the traditional bank account system and has nothing to do with bank accounts. How to use? Since digital currency is equivalent to cash, in addition to transfers and payments, it can still be used for investment and financial management. When we own digital currency, we can deposit the digital currency in the bank to obtain interest as a deposit, or as other investment and financial management to obtain income. As for how to calculate interest? Of course, there is no difference from current investment and financial management. You can calculate it however you want. The rules of investment and financial management will never be changed just because it is a digital currency. Looking to the further future, physical currencies (banknotes and coins) will eventually be replaced by digital currencies and completely disappear from the stage of history. This is an inevitable trend in the era of digital economy.