Zhou Xiaochuan: Two-tier process for digital yuan and cross-border payment issues

At the annual meeting of the financial group meeting on October 22, 2021, Vice Chairman Boao Asia Meeting, Vice Chairman of the 12th National Committee Meeting of the company and Zhou Xiaochuan, former chairman of China's financial institutions. , mentioned below. Digital profits are an important part of digital marketing, and our country has always believed that finance is a real business. Although he has a different view of financial aid to developed countries and the real economy, he believes our country is working.

As the reason why the digital renminbi insists on payment stores, it believes that with the development of technology and internet technology, in-store payments can be further improved and is expected to increase efficiency, reduce costs and improve. efficiency. While there is room for improvement in wholesale payments, the whole wholesale payment process is complete and the payment process is efficient, so there is little room for improvement. Why does RMB digital refer to a two-tier system?

He said there are three important decisions when choosing a "two-step" for the digital yuan. First, the security of the current system. At present, the functioning of the banking sector is generally based on the “two-tier system”, and after many years of commercialization, this process has become more stable. , and a variety of jobs and great offices. Therefore, the digital yuan is stable when viewed as a "two-tier system".

If evidence and experiences are not enough, new technology can be quickly replaced by existing ones, which can lead to financial instability, leading to issues such as inconsistencies between these systems and industry trends. Second, the "two-tier system" can promote market competitiveness and improve business efficiency and payments. Under the "two-tier system", different organizations will compete to improve services, improve efficiency, improve technology, use the latest technology and improve the reliability of payments, which is a key force in improving the payments. relationships and develop financial and payment services. a service.

Finally, the "two-tier system" allows central banks to focus on macro-management and financial security to tackle issues such as the financial crisis, money laundering, crime and drug trafficking, and enhanced against hacker attacks. In order to create a "two-tier system", a two-tier school must be integrated into the whole and support its interests. At the same time, there is a need to constantly improve the technology through the competition of organizations and improve the exchanges. They also need to ensure that many new developments that do not have low coverage can occur and come to life in the best possible way.

He believes that the current cross-border movements of digital resources as well as cross-border digital renminbi payments still require in-depth research and discussion. The Bank for International Settlements (BIS) previously divided the cross-border structure of digital banking into three categories. First, there are advantages that can be used in many countries. The second is to develop intermediary products such as “silver bridges”. The third is for each country to establish a digital banking system and make some kind of agreement with the central bank.

He thinks the third model is the most difficult but the most likely. This means that even after each country has its own digital advantages, it still needs to improve, supplement and trade exchange rates and foreign trade. During the Winter Olympics, it is very possible that the model will be used to facilitate foreign athletes with the digital yuan. How to determine the current exchange rate? With the improvement of the internet and cloud computing, users can now receive exchange rates at the time of payment. Of course, you can choose to use the exchange rate from the last trading day as a proxy. In addition, interim payments between countries are legal.

For current funds, payments should be based on money laundering, "anti-bullying" finances and should be gambling free or drug free. management of annual quotas, etc. He believes that these things can be solved by smart contracts, and it is not easy to achieve with the Internet and mobile terminals currently developed in this situation.