The Macro-Finance Salon (No. 201), one of the seminars of the “Financial Development as a Boost to the Chinese Path to Modernization” series, was held online on 7 January. The event was jointly organized by the International Monetary Institute (IMI) and the Department of Monetary Finance, School of Finance, Renmin University of China (RUC). Several financial experts were invited to share their observations on “Digital Economy and Digital Currency”. During the seminar, Cheng Shi, Chief Economist of ICBC delivered a keynote report, followed by the discussion of a group of financial experts, including Chen Daofu, Deputy Director of Institute of Finance, Development Research Center of the State Council; Zhang Ming, Deputy Director of Finance Institute, CASS; Huang Zhuo, Deputy Director of Institute of Finance, Peking University; and Xiong Yuan, Chief Economist, Institute of Guosheng Securities. The seminar was hosted by Song Ke, Deputy Director of IMI, RUC.

Cheng Shi’s keynote report can be concluded from three perspectives.

First, digital economy as a new economic form. Since the pandemic is no longer a hurdle for circulation, the world economy has reopened. In such a context, to accelerate digital economy evolution will improve economic competitiveness. Compared with the traditional economic model, digital economy requires more data input, and creates values in more diversified approaches. This new economic form has brought about major transformations especially in the infrastructure, which is a key factor for the upgrading of both supply and demand sides. The digital economy marks profoundly the world paradigm by a new round of overall improvement of globalization, deepening the gap between different economies.

Second, digital currencies adapted to the digital economy. The fast-growing digital economy has deeply transformed the international monetary system, with digital currencies evolving into three main forms: cryptocurrency, Stablecoin and CBDC (central bank digital currency). During this evolution, cryptocurrency is developing as digital assets whereas CBDC takes up the function of a real currency.

Third, the new role of Renminbi (RMB). The digital RMB plays an essential and new role in this evolution. Revolutionary and innovative, it bolsters digital economy in China by consolidating the country’s material base. We should expand China’s existing advantage in digital economy, which will serve as a new momentum in the Chinese-style high-quality modernization.