The Integration and Conflict Between Digital Finance and Traditional Monetary System

Abstract

The wave of digitization is sweeping the world. The financial industry has also entered the process of digitization. The combination of both produces digital finance and derives many digital financial products such as Bitcoin, Digital RMB and so on. The products are constantly breaking through the disadvantages of the traditional monetary system and bringing new vigor to the traditional monetary system. Digital finance has deeply integrated with the payment, cross-border settlement, and reserve of the traditional monetary system. It brings a lot of innovative features. At the same time, due to the rapid development of digital technology, the relevant supporting measures and practitioners' literacy have appeared as unsuitable phenomena and problems in macro-monetary policy regulation, information leakage, and legal supervision. And giving corresponding suggestions on related issues, this paper aims to do profound research and analysis by providing examples, which is to explore the integration path and conflict coordination between digital finance and traditional monetary system and to provide reference value for the benign development of digital finance.