Interest-Bearing Digital RMB Enhances Monetary Efficiency
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Monetary Structure Adjustment: The interest-bearing design of the digital RMB not only redefines the nature of central bank liabilities but also introduces time value, enhancing its core position in the economy even in a zero-interest environment.
- Clearing Efficiency Improvement: The digitization of financial infrastructure has diminished the intermediary value of traditional deposits due to real-time clearing and low-cost transfers, compelling the central bank to maintain the appeal of money through interest mechanisms.
- Explicit Credit Relationships: The interest-bearing digital RMB allows users to directly hold central bank liabilities, redefining the intermediary functions of commercial banks and pushing them to transform in value-added areas such as payment, credit, and asset management.
- Technological Absorption Effect: The digital RMB absorbs the efficiency advantages of tokenized deposits, integrating features like real-time settlement and high liquidity, thereby reducing reliance on tokenized finance and enhancing the competitiveness of central bank liabilities.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
