Opportunities, Challenges and Promotion Countermeasures of Central Bank Digital Currency

Abstract

Blockchain is a shared ledger and database with distributed data storage, asymmetric encryption, consensus mechanism and intelligent contract as the core technologies. It has the characteristics of decentralized, tamper-proof, traceable and retrospective, collectively-maintained, open and transparent. Therefore, Blockchain becomes the bottom but also the most important technical means of Central Bank Digital Currency (CBDC), which are organically combined and closely linked. This paper studies the opportunities and challenges of Central Bank Digital Currency (CBDC) issuance in the context of the rapid development of Blockchain technology, and proposes the main technical routes and countermeasures for CDBC: improving the management mechanisms, formulating CBDC standards and regulations; deepening international cooperation and actively innovating regulatory approaches to meet future challenges; focusing on technology empowerment, planning for protecting the rights and interests of financial consumers under new business models; strengthening data governance, building data transaction and privacy protection mechanisms. This study has reference value for the risk control, technology adoption and countermeasures in the process of issuing digital currency by central banks of all countries.