Significant innovation

Apple pay (File Photo)

He said that although digital currency is a new payment way, it experiences rapid development. Many countries are undertaking official or civilian tests and learn lessons and experiences from that.

Take Europe for example. The trading volume of digital currencies in European countries and regions exceeded 1 billion euros in 2015.

Western media cited Director for Banknotes and Chief Cashier of the Bank of England (BoE) Victoria Cleland's words that BoE has been researching whether to issue digital currency and the research work is in its preliminary phase. Andy Haldane, Chief Economist and the Executive Director of Monetary Analysis and Statistics at the BoE, said that using digital currency will be a great technological leap forward.

DNB ASA, Norway's largest financial services group, has cancelled cash counter service. DNB appeals that the government should end the use of paper money. Statistics shows that only 6 per cent of Norwegian still use cash, most of whom are the senior. Social cost of payment in cash is twice than that in electronic currency.

A Xinhua reporter in Norway said that only when his children’s school holds charity selling does he use paper money. Most of daily payment including riding public transport, purchasing, bill payment, fueling and even parking can be finished through electronic means.

Trond Bentestuen, Group Executive Vice President of Personal Banking of DNB said: "We have to accept the fact that no one uses paper money at present. It is useless to spare 3.5 billion Norwegian Krone (around USD 409.14 million) every year to print and issue paper money."

Far-reaching influence

Digital currency is superior to paper money for it not only saves cost during issuance and circulation but also increases trade and investment efficiency and improves convenience and transparency of economic trading activities. Issuance by the PBoC guarantees consistency of financial policies and integrity of monetary policies. This approach also ensures the safety of currency trading.

As for anti-forgery, Zhou said that the PBoC will use many information technologies including cryptographic algorithm to make sure that the digital currency cannot be counterfeited. Technologies will be upgraded in the future.

Although means of issuance is under discussion at present, paper money has already been regarded as currency of the last generation by professionals. It is an inevitable trend for new technology and new products to replace paper money.

China does not have a timetable for the launch of digital currency yet, according to Zhou. Digital currency will co-exist with cash for quite a long time before it finally replaces cash, Zhou added.

He predicted that when the era of digital currency comes, people will take less and less cash along with them, travel will be increasingly safer, poverty reduction will be more precise, corruption is difficult to escape from being discovered and thieves will find it increasingly difficult to steal money.