The Collapse of Traditional Market Credit System and the Establishment of Digital Credit in China

Credit is a highly significant term in the field of economics, with some scholars even equating it directly with the economy. In traditional economic research, credit is both a key concept and a problematic issue because it is both important and risky, serving as an indispensable resource while also being challenging to obtain. Around the notion of credit, problems such as "market uncertainty," "asymmetric information," and "incomplete contracts" have long been unsolved puzzles. This paper intends to examine credit in traditional economic society and comprehensively expound on digital credit in China as it enters the era of digital economy. In the backdrop of China's digital economy, problems that once plagued markets and economists have been resolved one by one through digital credit, with a completely new form of credit emerging as the mainstream in the market, and leading the economy towards the future.