The central bank's digital currency in competition and supervision

This year, with the enactment of 92 and 621 compliance, Bitcoin and other popular cryptocurrencies announced the complete abolition of the Chinese market. In contrast, central bank digital currencies (CBDCs) are booming.

Central Bank Digital Currency (CBDC) is a significant difference between the cryptocurrencies mentioned above, provided by the bank, which is the digital version of fiat money, and is regulated by the results.

01"Scramble" has startedCountries all over the world have advised and fiercely competed

According to a Reuters report in Washington on October 13, the financial leaders of the G7 (7 developed countries including the United States, the United Kingdom, France, Germany, Japan, Italy, including the G7) and The leading bank is Canada) 13 products for the bank. numerical results have been identified. Information to know.

According to the Code, the key issues to consider when designing and submitting a CBDC: financial security, ease of use, network security, power consumption, integration, privacy and financial protection.

Along with the G7 summit, many analysts believe that the move will not only offer greater potential for central bankers to expand the digital divide, but will also start the fight for the right to establish international development benefits. At the end of 2020, 86% of global medium-term financial institutions were studying digital banking, and 14% of midsize banks regularly operate non-digitally, according to the Bank for International Settlements report.

Among them, China has always held a key position and has so far invested more than $ 300 million in digital yuan in the Chinese economy. The Joint Venture Company and the Agricultural Bank of China invested in Beijing and Shenzhen and were able to easily experiment in big cities like Chengdu.

However, other central banks, such as the Bank of Japan, the Bank of England and the Central Bank of Sweden, are not left out and are exploring the possibility of a digital central bank. For example, in July 2020, Lithuania, a member of the European Union, attempted to launch a digital platform called LBCoin based on blockchain technology, the national bank's world's first digital platform announced.

02 ibPilot operations are carried out according to level.The Chinese digital yuan is constantly improving.

Regarding the Law on Legal Advantages of Banking Financial Institutions, as early as 2014, the People's Bank of China established a digital advantages research team with the Digital Currency Research Institute of the People's Bank of China. China to review the digital currency disclosure process. Specialized research on issues such as key technological developments, product distribution and distribution, and international experience.

In 2017, the former Governor of the People's Republic of China, Zhou Xiaochuan, publicly announced that he planned to use digital assets to replace banknotes with a history of more than 800 years in the past ten years. . The fact that China's successful digital pilot is doing well shows that we are not far from reaping the digital advantages.

Four state-owned banks, including the Financial Services Corporation, the Construction Company, the Commerce and Industry Corporation of China, and the Agricultural Bank of China, were established. 2020 .. Chengdu in one order. The citizens of the city drivers may have previous experience of the Big Four Banks' yuan services or deposit and withdrawal facilities, as well as simple operating procedures.

The Chinese digital renminbi is provided by the People's Bank of China, the national credit is guaranteed, and it is the same as the renminbi. It can be exchanged for free at the latter. and although the exchange can be done without a bank account, it will be installed on the mobile phone of the exchange party.

At the same time, the digital renminbi uses anonymous control procedures and the information on the use of data is held by banks, which will help to protect the security of user information and prevent and protect against financial transactions, financial fraud, tax evasion and other crimes and misdemeanors. , effectively manage financial security.

By visualizing this, you can open the app to know about digital renminbi activities and services. It will be easier to understand than a long description.

Friends who aren't in the aisle don't have to worry about incompetence. Indeed, before that, a central bank official of China announced that the larger closed-door measures would also be available during the Beijing 2022 Winter Olympics.

03opportunities and difficulties

Fed Chairman Quarles: “Digital currencies pose a risk and have a major impact on the performance of the current financial system. It is not certain that digital banking will solve the problems of financial integration.

Although digital banking has been very successful and countries around the world are working on proof of concept or experimentation, the issues they face cannot be ignored. The emergence of central bank digital currency is, on the one hand, the demand for human life due to advancement in technology, and on the other hand, the competition and efficiency of the current budget.

New developments in digital currencies and central bank payment methods can create significant benefits, but at the same time pose certain challenges for the establishment and oversight of public policies. Managing national financial management and financial security in a timely, affordable, transparent, inclusive and secure manner is a prerequisite and a key issue for all countries.

How to solve this problem and strengthen international cooperation is a good way. Therefore, it seems necessary to see that the battle for the right to control global digital currency policy reform has begun.

04 ibit's a dilemma

Using the digital renminbi is still online payment, and when it comes to online payment, no one will know. Third party payment platforms like WeChat and Alipay are present in every aspect of our life.

According to a report by the People's Bank of China, at the end of 2018, the percentage of elderly people using electricity in China was 82.39%. Even in rural areas, the percentage is over 70%. According to data from Beijing-based iResearch, in Q1 2020, despite the impact of the spread, Chinese third-party payments will still exceed 53 trillion yuan, with Tencent's Alipay and Tenpay each accounting for 55.4% . do and 38.8%.

Based on various data and analysis of the situation, many people believe that the Chinese economy will be challenged by private home businesses to promote digital advantages. With the completion of Alipay and WeChat payments, Alibaba and Tencent have been involved in China for a long time. Digital payment .. Own special work.

Due to the growth and commercialization of the digital renminbi, consumers will always choose the old ones when faced with two options: individual direct marketing and third-party marketing.