At present, the only digital currency recognized by China is the digital RMB DECP issued by the central bank. However, DECP is still in the testing stage and has not been popularized. Digital currency DECP, the central bank, has conducted an internal test in China Agricultural Bank, and has started pilot projects in Shenzhen, Xiong 'an, Chengdu, Suzhou and other cities. DECP is issued by the central bank. Just like traditional paper money, DECP essentially replaces cash in circulation, but it is stored in digital wallets in different forms.
There are three representative views on the concept of virtual currency:
1. Virtual exchange tool theory. Virtual currency is defined as a virtual exchange tool in online games, which has no other uses and functions. On June 4, 2009, the Notice of the Ministry of Culture and the Ministry of Commerce on Strengthening the Management of Virtual Currency in Online Games adopted this statement.
2. The theory of the monetary part. Virtual money has some functions of real money, similar to money but not money. Some scholars divide virtual currency into three stages: primary virtual currency, hard currency primary virtual currency and advanced virtual currency. In the first stage, virtual currency is issued by non-financial institutions and circulated between small-scale merchants and holders by means of computer networks; In the second stage, the circulation field is extended to all merchants who accept primary virtual currency; The ideal third stage is issued by the central bank or a specific financial institution, and virtual currency becomes legal tender that can circulate in the virtual world. At present, virtual currency is only in its infancy.
3. digital currency said. Virtual currency is established on the basis of mathematical algorithm, without the intervention of third-party credit institutions, and can be used by any participant who reaches an agreement, and can play a variety of functions of currency in the network virtual space. For example, some scholars believe that digital currency is a virtual currency developed based on computer technology, with strict mathematical algorithm or encryption technology to ensure security and exclusiveness, and it circulates among members of virtual communities without supervision and physical media as carriers.