Digital RMB: can it pass around the corner?

“In China, there are opportunities to test advanced technologies. I am proud to try the digital renminbi! Knowing that the Beijing Summer Olympics will support the pilot application of the digital renminbi, Chinese Guyanese representative Zhou Yaxin was quick to test it. .

What it doesn't need is renminbi digital wallets come in a variety of forms including mobile apps, video cards, ski gloves, smartwatches, badges, and more. In addition, during the Winter Olympics, users can easily receive and open digital renminbi wallets in various ways, and use digital renminbi under various circumstances to eat in a closed space.

People's Finance Company of China working meeting for 2022 was held on December 27, calling for improvement of financial services and management level, as well as stable operation and implementation of the project R&D pilot on the digital yuan. As of October 22, 2021, there were 140 million digital renminbi personal wallets, 10 million public wallets, 150 million exchanges, and a total exchange rate of 62 billion yuan. According to incomplete statistics, in 2021, at least 11 yuan digital envelopes were distributed to Beijing, Shenzhen, Suzhou, Shanghai, Xiong'an, Chengdu, Hainan, Changsha, Xi'an, Qingdao and Dalian, with an increase of 3 , 4. million wins.

The Digital RMB will become the “calling card” technology of the Spring Festival, and spring is expected to be a key moment in the adoption of digital values.

If you want to go, you can buy tickets and tickets in Beijing through the Yitongxing app and the All-in-One Card app in digital RMB. Chongli Bus is also known for digital renminbi payment. and other large regional markets and supermarkets Wumart and other retailers have supported the use of digital RMB. If you want to buy medicine, some hospitals are selected, and hundreds of pharmacies in Beijing and Zhangjiakou support the adoption of digital renminbi. Travel and tourism, Badaling Great Wall, Forbidden City, Old Summer Palace and other payment sites have reached the digital renminbi and accepted environmental development, and many hotel deals have been made.

"The Olympic Winter Games in Beijing are an important area for our next pilot." People's Bank of China Vice Chairman Fan Yifei previously said he will actively support the bank in digital banking and continue to expand its services. Make your driver more. Beijing and Zhangjiakou have launched digital RMB pilot operations since the beginning of this year, and the application scenarios have diversified and the packaging industry has developed, making it a solid foundation for the development of Payment Terms.

As in the past, the digital pilot RMB scenario of the Beijing Winter Olympics is expected to bring the digital advantages of our country to new development opportunities. The research institute hopes that the digital renminbi will be the last technological "calling card" of the Winter Olympics, and that the Winter Olympics will be a major base in the use of digital results.

As a leader in the banking industry, the Beijing industry has accelerated the acceptance of the construction industry environment. Among them, all the stages of the Beijing Winter Olympics Organizing Committee park have been completed, and the construction of the environment adopted by the digital yuan and the construction of the stadium in the Games security red line Winter Olympics are underway. Communication. services, tickets and entertainment are all included .. In the Zhangjiakou running area, the incident paid off in the Winter Olympics red safety line included by the life who. Payment status for installation complete is 100% complete and vacancies are still signed and linked.

“Chinese Digital Yuan Research and Development Report,” released in July this year, describes the digital yuan's “Olympic Winter Winter”. While driving, the digital focus on the yuan continues to explore the innovation of application models using smart contracts. Provides digital RMB programmability and scalability to support deep integration with application scenarios.

Korea has long suffered from digital money issues. From 2014, central banks began to study issues such as digital advertising and key technologies. In August 2019, the central bank declared that "accelerating the improvement of Korean legal tender (DC / EP)" was one of the key tasks in the first half of the year. From the end of 2019, the renminbi digital startup test in Shenzhen, Suzhou, Sheng'an New District, Chengdu and the 2022 Summer Olympics. In August 2020, the Ministry of Commerce announced the launch of a digital yuan pilot project in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Taiwanese district of Guangdong-Hong Kong-Macao and the Midwest pilot area. . Where authorized. In October of the same year, six test sites were added in Shanghai, Hainan, Changsha, Xi'an, Qingdao and Dalian.

Mu Chang-chun, director of the Center for Electronic Money Research at the Central Bank, said, “The role and product of digital money is the same as that of paper money.

The digital renminbi is no mystery, but the value of electronic money. Mu Changchun pointed out that the digital renminbi is a digital form of fiat currency issued by a central bank, operated by a corporation, and traded with the public. Encourage the integration of bank accounts based on multiple expenses.

“Digital money can be sent like paper money. It's converting money. It's a cash-strapped benefit. It has national recognition and no restrictions on legal redemption. No one can accept it, ”Vice President Zhao said. find.

Xu Yuan University, a financial expert at the Beijing National Development Institute, said: can see, and the income to be achieved, "said Xu Yuan University, financial director of the National Development Institute of Beijing. Beijing, digital space. I think it should, and it works for two main reasons. One must rely on the use of technology to keep digital assets safe, while others can track and trace revenue data and data streams in real time.

The development of new technologies represented by the digital RMB will be an integral part of the work that carbon neutrality undertakes in the daily lives of users.

Even if you don't need disposable utensils to order, buy a plane or train ticket online, or have a green bag on hand when shopping for fresh produce, you can bring a green bag. . Like the habit of using carbon monoxide on a special website, you can get RMB red envelope digital benefits. On December 15, the RMB digital carbon neutralization was piloted in the new version.

Before that, cycling tests had started in three months, and more than 8 million users had registered, and by traveling over 42 million km, carbon emissions were reduced by 11,400 tonnes compared to vehicles at gasoline. According to insiders, the new technology represented by the digital yuan will be the key to the negative impact of carbon monoxide to enter the daily lives of consumers. .

The Central Business Conference identified the need to prioritize savings and implement a budget saving strategy. It promotes resource conservation, concentration and recycling in manufacturing. In terms of nutrition, we are raising awareness in the country about conservation and advocating for a simple, average, green and low-carbon lifestyle. The industry generally believes that the digital renminbi has the potential to be an important starting point for cash flow and has certain advantages in promoting green and low carbon emissions.

The digital renminbi has the features of low cost, high efficiency, safety and reliability, and it is a full-fledged low-power device because it can save money, divide the costs and save the paper needed to print tickets at large venues. . Tools and payment tools.

“Even though the digital renminbi is used in domestic green financial markets, to implement cash flow support policies or across borders, it is used for the benefit of green financial markets. Li Lihui, former chairman of China's financial institutions, believes that the digital yuan will change the pattern of the payment processing industry.In the mobile payments market dominated by market-based payment methods such as WeChat, the development of Pay, Alipay and official. The payment method is mutually reinforcing, competitive and competitive, more favorable competition will improve payment performance and reliability.

What is the difference between digital renminbi payments, Alipay and WeChat? Mu Changchun explained that Alipay and WeChat Pay are digital wallets. Before the birth of the digital renminbi, bank deposits were made, but after the birth of the digital renminbi, wallet details can raise funds at the central bank, and anyone can. Please also use your old wallet for payment.

While third-party payment tools like WeChat and Alipay charge user fees, the digital renminbi is a public service at no cost to the user. Mobile payments in Korea are more market-oriented electronic payments than true digital “RMB”.

After the experience, there was a feeling that the digital renminbi had not been as influential as expected, and it did not appear to have made any significant changes to the paper, the actual functioning and function of the fund. In this regard, Wang Yongli, former vice president and chairman of the Bank of China, believes that it is very important for the digital yuan not to change the application in the long term, that is, to minimize the significant user changes. experience. .

Exit the front and look behind. Both user and service provider need to download the app integration. Wang Yongli pointed out that this has led to significant changes in payroll and procedures. Banking companies have become an important entry and exit point for the digital yuan market. This means that for all digital yuan receipts and payments, important information should be sent to the bank for account verification and completion. The accuracy and efficiency of financial policy was greatly improved by understanding the total value of the digital yuan at the time, and making it necessary for proper oversight and management of the outer layer.

These changes also follow the fundamental characteristics of numerical advantages rather than existing advantages. Digital benefits are strictly combined with money, contracts and agreements to make "payments, payments".

"Controllable anonymity" not only protects user privacy, but also serves financial security such as financial protection, financial fraud prevention and protection.

How long will it take for the digital yuan to become popular after going through so many experiments?

“Small countries are easier to innovate and lead. If there are any issues found after the test or if it does not work well, switching is also easy. Big countries are not easy at this, but better if they did. There are many Zhou Xiaochuan, former Governor of the People's Republic of China, Boao Conference Talk to Asia, noted that in some small European countries, it only takes about a year to switch from an existing solution. 10 years for China to go from the 3rd generation yuan to the 4th generation and to the 5th generation yuan.

When it comes to the digital yuan, some people fear that central banks will control the exchange of user information and violate user privacy, while others believe anonymity may violate the law. In response to these concerns, Mu Changchun explained that the digital renminbi is anonymous as the basis of a controllable risk, requiring user privacy, as well as possible according to financial security needs such as the prevention of money laundering. and the fight against harassment. Fundraising and Crime Prevention A “need in order to manage financial security”.

Current payment tools like bank cards, WeChat, and Alipay are tied to the real name of the bank, while the digital yuan is loose on the bank. , which results in a little anonymity. Renminbi digital wallet adopts personalized design, anonymous wallet can be opened with mobile phone number, but also has the lowest price and daily limit. If you want to pay big, you can change the wallet.

Mu Changchun stressed, "The decision of this project is to meet the appropriate personal needs of the public and avoid the big business risks on the other hand," noted Mu Changchun. Check user's cell phone number to get real user ID.

"All public relations should not interfere with financial and monetary security. They should be integrated with cash and other currencies in exchange and innovation." Central Bank Digital Currency: Basic Principles and Core Functions "report, which describes the main characteristics of the digital banking sector, made up of seven central banks, including the Federal Reserve, the European Central Bank and the Bank of Japan, and the Bank of Solutions international announced in October 2020

Zhou Xiaochuan hopes that the 7 banks in the medium term will find the best solution for digital banking, and believes that DC / EP is a two-tier dynamic evolution system. A two-tier system, the first tier is the central bank and the second tier includes commercial banks, telecom operators, and third-party payment network platform companies. In this process, the central bank plays an important role in wholesaling the digital yuan and managing the life of the entire banking industry, while the central bank and other organizations are responsible for ensuring the exchange. and distribution to the public.

Some analysts have pointed out that the centralized control of the digital renminbi is effective in preventing the erosion of crypto assets and the global stability of coins, preventing speculation. Payment. Improve the export of financial policy. At the same time, knowledge of payment and problem solving and improving the efficiency of investors' business investments will help solve negative problems for small and medium-sized businesses, removing barriers to retail payments and financial inclusion.

Identify the pioneering advantages of the digital yuan and explore potential areas for the internationalization of the yuan.

In recent years, the growing prospects for digital advantages and their impact on the global economy have gained ground at home and abroad.

Zhu Jun, Director of Global Business Administration, People's Bank of China, said, “Every digital banking company in the world has grown. "Soon the competition for the great powers of digital services will increase and the global integration of services will gain momentum.", Stressed that we must identify the best driver of the digital yuan. Explore potential areas for internationalization yuan.

First, the digital yuan pilot project can be continuously extended and improved in the authorized areas, the performance of the digital yuan pilot can be improved and strengthened, and the legal procedures and resources will be improved to establish a solid foundation. Second, as the new central bank, digital currencies need to be explained and communicated to the masses and the economy. At the same time, financial institutions should constantly promote international participation in the research and development of digital resources, and engage in policy discussions and research across the world.

Zhu Jun said that currently, the digital renminbi is focused on improving in-store payments, and is not intended for cross-border payments. However, it should be noted that the introduction of digital advantages for cross-border payments in other recipient countries could increase the demand for these funds, maintain it, strengthen or strengthen their international operations and affect international renminbi trade. . We need to pay special attention to the research and development of digital banking companies.

Currently, Ecuador, Tunisia, Senegal, Marshall Islands, Uruguay, and Venezuela have announced digital bank transfers.

In the real world, the direct promotion of banks halfway in digital research and exploration is huge to prevent US financial sanctions and control the security of domestic trade, and secondly to lower expectations for the US dollar. ; The third is to seek the improvement of financial equipment and secure the future of enterprise development, and the fourth is to maintain the security of existing financial institutions.

Many countries need to create fairer, more efficient and higher international cross-border payments. Ju Jiandong, Director of the Center for International Finance and Economic Research, National Institute of Finance, Tsinghua University, pointed out that the main goal of digital yuan payment across new frontiers and solutions is focused on providing services to large enterprises. specialized. The “spare tire” plan, which would expose itself to financial sanctions in other countries, has resulted in a “financial blockage”.

From the initial exchange of materials to seashells, gold and silver and silver, silver has continued to increase with the advancement of technology and industry. Thinking back to the history of currency, England took the initiative for the gold standard in 1816 and supported the overall development of the Industrial Revolution, and on the other hand, the system was designed for Bretton Woods in 1944, and funds into the US gradually. went around the world using gold, it became an asset.

Now we can witness the new story. With the advent of digital money, the economic and financial models of people's lives will radically change. Many countries are investing in digital banking. China, which has planned its pre-arrangement, is expected to use its first operation to complete the crossing in several areas.