Competition and participation after digital renminbi in a series of interviews

The emergence of DCEP, the People's Financial Institution of China, means that China has become the first country in the world to publish legitimate digital assets. So far, China DCEP has completed experimental operations in Shenzhen, Suzhou, Sheng'an New Area and other places. DCEP in China is the most prominent digital crypto version of RMB banknotes and coins, at the same time offering gifts like RMB fiat currency, and has dual operation and two-tier structure. It also exhibits the characteristics of anonymity and control, both offline and in weak coupling.

Zhou Yifan, CEO of RedBlock, a well-known one-stop digital and financial brokerage firm in the asset arena, was invited to film the well-known financial news from Anbo New World and created the series. of a talk show. The three parties discussed the arrival of the digital currency era and the impact of China's DCEP on domestic and foreign spending and finances.

In this issue, we will be writing a key topic titled “Cooperation and Integration under the Digital Yuan”. Read on.

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MB World:Friends with experience from designing red envelopes to experimenting with digital rewards have reported that using digital benefits is similar to paying online.

Monday:

The payments represented by WeChat and Alipay can be understood as electronic payments, so-called electronic payments are required before digitizing and virtualizing all currencies and then making payments through media and network connections. In principle, the electronic payment procedure can be understood as follows. In other words, we first convert the currency we hold into real numbers and then use that as a form of payment. The digital yuan method has the meaning of wallet, but it is different from electronic payment. You can do business offline without a network.

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MB World:This way of making payments without the network cannot help recapture digital benefits like Ethereum and Bitcoin that are often mentioned in blockchains. So what is the difference between digital RMB and this currency?

Monday:

Strictly speaking, the digital benefits of blockchain should not be called 'digital currency', but as a kind of digital asset. Now Bitcoin stands for a valuable asset. In other words, it can only represent the value that you have. In fact, it is an asset investment, for example the value of the commodity that we invest in the exchange, the commodity is a financial asset, not a currency in circulation. This is not a compromise and cannot be used as proof of activity.

In the past, some countries have tried to use the Bitcoin POS or Bitcoin machine for payment and use. We can apply techniques from the early days of financing to understand that the exchange of one asset is the exchange of another. of treasure. At the same time, it will eventually improve to achieve a relatively covered equal goal.

Director Yoo:

The clear definition of back to business is helpful for our understanding. A benefit is a type of equation that works on value, consistency, cost savings, etc. The renminbi, the US dollar and other legal rates are equal and are equal. However, Bitcoin and the like do not operate at market price, so they cannot be called money.

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MB World:From an optical point of view, electronic payments contain a lot of personal information. If so, will the use of the digital renminbi still be monitored in the bank?

Monday:

When we use banknotes for consumption, banks can monitor which machine goes in and out of the banknote, but not the average. However, as the digital renminbi has become more prevalent, banks may fill knots in the middle.

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MB World:What was decided during the selection of the city driver in the 3rd round of the “Open Beta” digital rewards? Will there be similar models in future use?

Director Yoo:

I think the Central Bank of China made a profound decision by choosing cities like Shenzhen, Suzhou, Shanghai and Beijing as their experiences.

Advertising, for example, where digital marketing is very powerful. Local populations have become consumers of digital life.

The second is that the lead cities are all newly developed cities that correspond to the strong characteristics of digital advantages.

Third, Shenzhen's financial sector is also developing, which will help establish a better banking environment and gradually improve its risk management. In the driving process, the product impact (potential, security) of the digital yuan can be better tested.

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MB World:From mid-January to the end of January the third digital currency “open beta” has been completed, how long will it take?

Director Yoo:

The manager does not have a particular working schedule, and I personally think that the testing time can still be very long. The ability to use the benefits is very wide, and in addition to daily consumption, it can be used for financial transactions, cross-border trade, etc.

If financial transactions are limited to small amounts, such as red envelopes or used only for offline payments, they will have no value. Therefore, I believe that the future application scenario of the digital renminbi will become more and more broad, and the investment resources of the application will also be larger. It will be carried out in full after verification of its reliability and feasibility.

Monday:

I think technology only sets the standard, not in combination with strict constraints. That is, who decides which models, for whom and in which markets the models will be accepted. I think the current test can be identified by many factors. The first aspect is the application scenario. Most of the ongoing experiments are in frequent use like Didi Taxi and daily meals.

This should test the ability to withstand the pressure of the digital renminbi, and test whether it can withstand high pressure, high speed or multiple transitions, and another level is a measure of poor performance of different situations.

For example, some commercial real estate, cross-border trade or large companies. It is more important to try out the whole design and build process as these processes can lead to big losses if something goes wrong.

Currently, the digital renminbi pair represents the value of the renminbi currency and its anchor can be any currency. He predicts that the digital renminbi will be able to balance other stocks or renewable resources such as gold or oil in the future. For example, the US dollar was previously linked to gold in the Blington Woods system.

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MB World:Money is a representation of wealth, and it is also a commodity that affects each other and influences things. The full expansion of the digital renminbi will undoubtedly reshape the entire payment system. Why did you choose to launch the digital platform at that time? What are the advantages of China's digital technology and knowledge advantages over other countries?

Director Yoo:

First, the national policies on the development of the digital economy, including the 14th five-year plan, which made it clear that the digital economy must be developed.

Currently, we are not able to digitize the entire US economy, which is also our shortage, and secondly, we are facing competition.

Many countries are looking to promote digital advantages. There is a good relationship between change and exchange, since the benefits after the benefits are the national credit.

Monday:

The development of our digital resources is the fastest in the world. We have now identified all the global markets, less than 10 countries have released government-recognized numerical results, and most are small to medium-sized countries like Venezuela and Angola. Big businesses don't work and keep learning.

This can be understood by taking Venezuela as an example. National rates are reaching unpredictable levels and national scores are very low. The resulting digitization can improve the financial process.

Indeed, the whole process of digitization has enabled many countries to develop their credit system and connect with the world.

It is important for our country. We have always wanted to ensure the management of the renminbi in the global community, and digitization is the fastest and most efficient way.

Our current leadership role in the use of technology and prior knowledge also allows us to have a say in the future.

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MB World:How does monetary digitization affect the old monetary and financial system in the United States?

Monday:

The crux of the matter is whether his hands are right. The struggle for digitization alone is false, as the world of construction and history has reached the point where it must change.

Over the past 20 years, we have made many changes, including the popularity of mobile phones and the development of 5G internet technology. Now anything that is offline can be represented digitally and commercially and the price is an irreversible process. I think the most important thing is who creates the norms and rules, not unreasonable opposition.

European countries and the United States are trying to have a say in the justice system, including Switzerland, the financial bloc. Switzerland has chosen Zug as a digital port and plans to develop a digital business, and with the current spread, the US doesn't have time to think about finding a digital business just yet. . China stands out from this.

Director Yoo:

We believe acceptance and integration is the only way to be successful. But the whole process will undoubtedly require caution. We have to resolve these conflicts one by one and improve them one by one to create more situations and capacities.

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MB World:How long will it take for the digital yuan to develop on a small scale with the development of road and information technology?

Director Yoo:

The digital yuan still requires a "replenishment class". When it comes to financial digitization, China is improving from top to bottom while the United States is improving from bottom to top. The United States created a demand for digital advantages after the digitalization of physical assets, but in the case of our country, there is still a lot of room for growth in the digitalization of assets. .

Monday:

From the perspective of the whole history of financial improvement, the structure of finance is a pyramid structure.

In the case of the digital yuan, it is necessary first to establish a method of payment, and then gradually improve the financial system and real estate development, including digital banks, agents and brokerage houses, to promote circulation of the digital yuan.

We also mentioned earlier that the digital RMB is anchoring elsewhere and, if possible, greater acceptance, greater acceptance and greater demand.

See here, the foundation has not yet been established. In other words, the further development of the digital renminbi requires improved business procedures and monitoring, and improves application and reception conditions as well as geographic areas. It is also important to create security installations such as firewalls.

Anything new has to go through a long period of development, and the digital renminbi is no exception. China's economy, law and order, as the basis for new regulation, should be stable and profitable! We're waiting impatiently!