Assuming that 100 yuan is in circulation, the central bank’s digital currency will replace that 100 yuan.
1. The application of digital currency may help the central bank to calculate the money supply and its structure, circulation speed, money multiplier, spatio-temporal distribution and other aspects more accurately, so as to improve the accuracy of monetary policy operation;
2. Promote the internationalization of RMB: the central bank’s digital currency adopts the form of loose coupling of accounts, which reduces the dependence of transactions on accounts, thus bringing the same liquidity and controllable anonymity as cash, which is helpful to promote the circulation and use of RMB in a wider range;
3. Daji Financial crime: Under the controllable anonymity mechanism, the central bank can analyze the mastered transaction data to achieve prudential management, anti-money laundering, anti-escape, anti-terrorist financing and other regulatory objectives, and improve the efficiency of financial supervision.