Professor Charles Chang Attends 2020 World Artificial Intelligence Conference, Giving In-depth Analysis on Influence of Central Bank Digital Currencies on Financial Society

Release time:2020-07-16    

From July 9th - 11th, 2020, the World Artificial Intelligence Conference was grandly held by Shanghai Municipal People's Government. With the topic of "Intelligent World, Common Homeland", the conference embodied the global development of the technology, industry and application of artificial intelligence, and also expressed a common value among all humans that AI should be used for the good of the world.

Charles Chang, Deputy Dean of Academics, Director of Fin-tech Research Center and Professor of Finance, was invited to the summit meeting and addressed a keynote speech entitled Influence of Central Bank Digital Currencies on Financial Society at the "Cloud Summit Meeting of 2020 World Artificial Intelligence Conferenceial Technology Research".

This year, following China's first step of launching CBDC (Central Bank Digital Currencies), other countries like America and Korea have also kept up with the pace. Professor Chang held that the acceleration of the global launch of CBDC presented five significant meanings: raising transaction efficiency, reducing risks, optimizing payment, intellectualizing traceability and inclusive finance.

In addition, under the situation brought by the current epidemic, many countries have issued economic stimulus policies. Chang pointed out that compared with the economic crisis starting from the financial industry in 2008, the epidemic situation this year has severely affected a number of industries. "For the epidemic, we have talked of quantitative easing, and thus it matters much who shall take charge and what it shall be used for."

He explained that small and micro enterprises as well as disadvantaged groups suffered the most. However, according to various situations in many countries, the fund subsidy issued by the country is unnecessarily able to reach the small and micro enterprises as well as disadvantaged groups after multiple instances of distribution. He added that CBDC, with its traceable, irreversible and intelligent financing nature, could transfer money directly to small and micro enterprises and individual accounts in need. In this way, the trickle-down effect of capital being distributed in error can be avoided, and the funds are sure to be acquired by the right parties, thus stimulating the economy.

"The era of China's digital economy has come." Professor Chang predicted that the scale of China's digital economy, having already reached 26 trillion yuan in 2017, would grow to an unprecedented volume, 120 trillion yuan, in 2035.