Countries around the world accelerate the research of digital currency, and token finance becomes possible.

News on May 25th, Federal Reserve Board Director Brainard: It is vital that the United States participates in the formulation of digital currency standards and pays close attention to the development of foreign digital currencies. At the same time, the Central Bank of Korea said on Monday that it plans to conduct simulation tests on the functions of the central bank’s digital currency to study the possibility of introducing a new cryptocurrency.

According to ZB Research Institute, the Bank of Korea plans to select the operators for simulation through competitive bidding to test the operation of the central bank’s digital currency in the virtual space. It mainly checks whether the central bank’s digital currency can be used as the currency for settlement and remittance, and whether the holders of the central bank’s digital currency can use it to purchase goods and services.

On May 25, a spokesman for the Central Bank of Russia said: seeing the demand for national digital currency, it will start testing the digital ruble in 2022.

In addition, in an interview on Monday, Tony mcraughlin, managing director of Citibank’s trading banking business, said that digital money itself is still evolving significantly along three lines: financial institutions, financial technology and encryption.

According to ZB Research Institute, central banks of dozens of globally active economies, including China, the United States, the United Kingdom, Germany, Japan, South Korea and Switzerland, are conducting research on digital currency. The issues surrounding government regulation and balance sheet may be the determinants of the digital currency format war. In the future, the development of digital currency is very likely to build financial service infrastructure on token, which is better than the current account based model. A world of token may be more programmable than a world of traditional and isolated financial infrastructure. The research process of digital currency in the world will make the digital currency finance based on token participate in everyone’s life faster.

As for investment institutions, ZB Research Institute learned on the 25th that Raoul Pal, former executive director of Goldman Sachs and founder of real vision, is evaluating the short-term and long-term prospects of bitcoin. He believes that compared with the traditional market, the space for encryption assets is relatively small. To reach a market share similar to the traditional financial market can make the encryption market soar 200 times. Raoul Pal said on the replacement of traditional currency by digital currency that “the world is unstoppable
”It is believed that the cryptocurrency market will have a long boom bust period.

On May 25, according to the news from the ZB Research Institute, Tesla founder Elon Musk said in response to doubters of cryptocurrency: “The real battle is between fiat currency and cryptocurrency. All in all, I support the latter”. Earlier, Musk had expressed his intention to increase the block size of Dogecoin by 900%. But this move was opposed by Ethereum founder Vitalik Buterin.

In terms of market, according to ZB Research Institute, the first quarter performance of CoinShares, the world’s second largest encryption asset management company, exceeded the performance of the whole year of 2020. The company reported a total management fee of 17.1 million pounds in the first quarter of 2021, up 13.9 million pounds from 3.2 million pounds in the same period in 2020. The year-on-year growth was mainly due to the sharp rise in the price of digital assets during the comparable period.

On May 25, Joyce Chang, head of global research at JPMorgan Chase, said that the fluctuation level of bitcoin is four times that of gold or stocks, which will make many company’s financial executives and institutional investors shy away, and these investment decision makers usually manage larger positions. Compared with other asset classes, the volatility of bitcoin is too large for most institutional investors.

ZB Research Institute believes that the global cryptocurrency market is entering a period of shock, and the rise and fall of the mainstream cryptocurrency is gradually expanding, which will give more investors a more favorable investment environment and promote the trading volume based on cryptocurrency. The sharp rise and fall of the market has stimulated the trading desire of investors. Compared with the financial institutions with large amount of funds, ordinary investors will be easier to obtain income in the volatile market. On May 25, according to the statistics of ZB Research Institute, the total market value of stable currency has exceeded 100 billion US dollars, reaching 102.217 billion US dollars. This also proves the view of ZB Research Institute.

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