Why can't digital currency exchange foreign currency?
Digital currency is a controllable and anonymous payment tool, which is issued by the People's Bank of China, designated as an operating institution to conduct transactions with the public. Based on the generalized account system, it supports the loose coupling function of bank accounts, which is equivalent to paper money and coins, and has value characteristics and compensation. Digital currency aims to replace cash in circulation. It is legal tender in electronic form. Of course, you can change it into foreign currency, but the progress will not be so fast. After all, it is only a pilot project at present, and it will take some time to reach this circulation. In other words, digital currency can't exchange foreign currency at present, but it should be in the near future.
In addition, the cost of paper money, whether it is cross-border settlement or foreign exchange control, is much higher than that of digital currency. From a global perspective, other countries may not recognize it in the short term, and may even resist it. After all, after digital currency unified the information flow and capital flow, all the data had to go through the central bank. However, it is an inevitable trend for digital RMB to replace RMB paper money. It is possible to gradually stop issuing paper money in the future, and when it comes to foreign exchange trading, digital currency may not be used.
Digital currency will promote the RMB to be more convenient in cross-border trade settlement and financial transactions, which is expected to break the control of the traditional payment system headed by the US dollar, making it possible to break the hegemony of the US dollar, thus promoting the internationalization of the RMB.
So let's wait and see.