Read "Understanding the Digital Yuan" in an article

Recently, the central bank reported that the renminbi exchange rate is over 87.5 billion yuan, and the renminbi APP has supported renminbi exchange applications in many cities, including Shenzhen, Chengdu and Suzhou. According to the bank's official data, as of December 31, 2021, there were 8.85 million digital yuan pilot scenarios, 261 million personal wallets, and more than 87.565 billion yuan in development packaging activity.

On January 18 this year, the state of business of the enterprise in the Hainan Free Trade Port was completed with a tax of 104.3 million yuan for the National Treasury Digital Renminbi Tax Service public. It is the largest in Korea to date, and the market's digital yuan taxpayers receive.

The future has arrived and digital yuan seeps quietly into our lives as a wet spring, changing our lives. Today the team of Her Sister discuss all aspects of digital renminbi.

What is the digital yuan?

The digital yuan, also known as the yuan electronic name (e-CNY) is a digital currency issued by the People's Bank of China, operated by unions and government grants. .digital yuan yog digital yuan, also approved by national credit, is a mandatory legal review and can be used as fiat as a general payment instrument.

Changchun Mu, director of the Central Bank's Digital Currency Research Institute, said, "The functions and properties of digital currencies are the same as banknotes, except paper is digital."

Significance, Location and Functionality of Digital RMB

The Importance of the Digital Yuan in Korea: Today, the digital industry has become an important engine for the growth of global companies. According to Lee Kang, Chairman of the Central Bank, the research, development and implementation of fiat digital currency will help meet the public demand for fiat currency in the digital market and increase convenience, security and convenience operations. protection. . Supporting our country's retail market and digital profits is growing rapidly.

Positioning of the digital yuan:It replaces banknotes and coins (ex. M0), which are advantages like cash, storage of goods and essential functions of cash, meeting the needs of movement and anonymous payment, nationally recognized and legalized. Nobody can deny it. I accept.

How the digital renminbi works:

The functioning of money refers to the clarity of the meaning of money, and money has five roles: valuation, circulation, storage, payment, and world currency.

digital yuanmeasure the valueFunction: The numeric Renminbi can be used to measure and indicate the value of commodities.

digital yuanaround meansFunctionality: The digital renminbi serves as a medium of exchange for goods. When exchanging goods, the seller can convert the goods into digital yuan and then use digital yuan to buy the goods. Here, the digital renminbi acts as a medium of exchange and works like a tour.

digital yuanlet meanSaving: Preservation refers to the operation of the digital yuan to be eliminated from circulation and preserved as an independent value and representative of the wealthy community. The digital yuan is generally equivalent to a legal payment and can be used to purchase and can function as a storage medium.

digital yuanmeans paymentFunctionality: Refers to the functions that the digital renminbi operates such as reimbursement, taxation, wages and rent, etc. (The operation of the digital yuan as a payment method is still under development and not widely used)

digital yuanworld currencyPerformance: The global digital renminbi currency demonstrates its ability to become its traditional equal in the global economy. The traditional idea is that to be used as world currency, gold and silver must have sufficient value and must appear as gold and silver nuggets without the coin pouches in zos. In the era of global trade and media coverage, the digital renminbi operates on a global currency. With the support of the Chinese government and banking institutions, foreign payments and renminbi settlement have been easier and more stable. . together in the futureDigital yuan internationalizationAs the process evolves, perhaps in addition to gold and silver, legal tender digital earnings will continue to play an important role in global earnings.

Key Features of Digital RMB

Level 2 functions:

Currently, the country has adopted a two-step process for the digital release of the renminbi. In other words, the company did not announce and transfer the digital bank directly to the public, but before the transfer of the digital yuan to the office, such as the company or another company, which then replaced it. in silver. Public. At the same time, the agency must pay 100% of the savings to the People's Financial Institution of China.1:1 exchange.

The principle and basic principles of two-tier operations and bank deposits are the same.Protecting the digital yuan by significantly impacting existing finances, the same timeEnsure real business security.

Another advantage of the two-step operating model is that it can support technology development without competing with the company's business model, according to Mu Changchun, director of the Institute's Digital Currency Research Institute. financial institution of China. Banks and other institutions: When applying for a qualification, a similar quota certificate can only be submitted if certain assurances have been met.It guarantees that the digital renminbi will not be released..

double payment offline

Digital Renminbi accepts the latest offline double payment technology, allowing the devicePayment is still possible even if the network connection is lost., increase the ease of use of the digital yuan, and more friendly for the elderly and people who do not like to use the Internet.

Mu Changchun, director of the Central Bank's Digital Currency Research Institute, said: "Electricity, two cellphones can touch one person. Digital transactions in e-wallets are transmitted to others. Digital accounts do not need to be immobilized in the bank at the time of payment, unlike WeChat and Alipay, which must be immobilized. Bank card now."

Anonymous control

Anonymity is to meet the needs of reasonable anonymity payments and confidentiality. Current payment methods such as bank card, WeChat and Alipay are linked to the bank account, and opening an account does not need to be anonymous because it is a real name.

The purpose of anonymous management isIt protects user privacy and security while preventing thieves from using digital yuan for laundry and other illegal and criminal activities..Currently, the digital renminbi only protects user privacy and security by distributing wallets and purses.

renminbi digital walletRanking and Ranking, digital RMB adopts advanced technology to connect with bank accounts and open digital wallets at different levels according to the level of KYC to meet different needs of public testing. Among them, the KYC strong wallet is an anonymous wallet that can be opened with a mobile number, and of course, the balance and daily limit of this wallet are only supported at the lowest level. Must pay the micropayment daily. If you pay a lot, you need to adjust your wallet, and your wallet balance and payments will increase according to your KYC system.

Central banks cannot obtain a user's identity by watching the mobile phone user use to activate the mobile user's digital RMB. In accordance with Article 9 of the Communications and Internet User Privacy Policy, the Ministry of Commerce, Industry and Energy, telecommunications operators and Internet information service providers do not shall not collect and use users' personal information without the user's permission. . Chapter 10 Communications contractors, Internet service providers and their employees are required to keep confidential the personal information of users collected and used in connection with the procurement process and not to lend, exchange, damage, sell or provide illegal services. for the others.

Therefore, wallets opened with mobile phones are anonymous to the People's Finance Company of China and many affiliates.A phone user may only provide their identifying information to potential customers if the company is able to release legitimate information in accordance with its procedures., make data available and comparable, and provide information services to prevent criminal activity.

Always availablesub-portfolio, every online banking business will leave a “digital footprint” that is greater than all aspects of financial information and usage. Some online websites and third-party payment companies track and receive information from many of these users in order to build user profiles and disseminate big data.

To solve this problem, in the case of online consumption of digital renminbi, the user's payment information is packaged and encrypted, and then pushed to the e-commerce platform in the form of the wallet, and cannot be obtained directly from the platform. Personal informations. Banks that provide services, merchants that accept offline payments, and people who receive remittances also do not receive the personal information of payment users, and the yuan digital wallet market has remained anonymous thanks to technology and technology. he can say,Consumer privacy protection by digital yuan is the best of today's payment tools..

Other functions of the digital renminbi:

(1) High security: In the case of real-name wallet data, the digital renminbi may lead to data loss in the event of data theft and other possible events.

(2) Multiple terminal options: People unsatisfied or unable to use smartphone can select IC card, dedicated phone or other device.

(3) Point-to-point delivery. Fixed point-to-point delivery can be achieved through digital smart contracts. By distributing people's money into public wallets, the potential for fraudulent claims, interference and theft can be eliminated.

Significant risks weigh on the digital yuan

The law is not perfect

The current legal system in South Korea is mainly focused on the traditional renminbi (many coins and coins), and the digital renminbi law has not yet been finalized. There is illegal use in the dissemination and use, circulation and monitoring of the digital renminbi.

WeChat wallet, Alipay and other wireless payment methods are widely used, but WeChat and Alipay are no different in digital RMB. Currently, the digital yuan in the experience is limited to micropayments and has not yet been used for payments, so there are still problems in the expansion and expansion of the digital yuan. For example, hacker-scale network attacks in information domains can affect financial security and community safety.

In this regard, the relevant legal and research mechanisms in our country must be maintained as soon as possible to ensure the promotion and use of the digital renminbi. At the same time, the digital renminbi policy can be established to some extent by improving and strengthening the legal framework related to the digital renminbi.

Safety technology is dangerous

Blockchain technology based on the digital renminbi is safer and more counterfeit than traditional fiat currency, but that doesn't mean the renminbi is safe and perfect.

RMB is a special currency that is backed by our country's national credit, so it is technically similar to virtual currencies such as Bitcoin and Tether. Cases of virtual currency users being stolen and lost due to poor security and vulnerabilities in the large foreign cryptocurrency market are not uncommon.

In early 2014, Japan's Mt Gox, the world's largest bitcoin exchange, suffered a major setback, losing around 740,000 bitcoins worth around $460 million. In the end, 200,000 bitcoins was fine, but the remaining 650,000 bitcoins weren't.

Therefore, although the digital renminbi is technically different from the traditional virtual currency, the controllable anonymity offers certain guarantees of the security of the digital currency, however, one must be aware of these threats that various attacks on the network can lead to the digital renminbi. .

Can be used as a target for terrorism

Although the digital yuan has now entered the experimental stage, it has come into the eyes of terrorists and is becoming a tool for criminal offences. Currently, the digital renminbi is often prosecuted for crimes such as money laundering, fraud, and forgery.

Used as a money laundering tool.On January 7, 2022, Shanxi Province's Jincheng Public Security Bureau solved the illegal renminbi digital money laundering case. Police were dispatched to Fujian and Guangdong provinces to arrest six suspects, found the amount of money involved in the case exceeded 100 million yuan, and settled more than 20 communications in 7 provinces, including Xinjiang , Heilongjiang, Jilin and Hunan. , Jiangsu, Guangdong and Shaanxi fraud.

After the terrorist attack was fraudulently carried out by fraudulent public security through house searches, members from Ningde, Fujian, Jieyang, and Guangdong used foreign dialogue to communicate with major terrorists. After the illicit money involved in the party and affair was returned in digital form of RMB, the virtual currency platform that went overseas was illegally purchased by buying virtual currency at a lower price and reselling it at a high price, and the money involved. for the case is over 1 million wins.

Fake digital yuan, Mu Changchun, director of the National Bank of China Research Institute, said: "Now the central bank has found that the RMB digital wallet has appeared in the store." The digital RMB is also Korea's legal tender. And the use of counterfeit digital assets may be "counterfeit false benefits", "infringement of possession and use of counterfeit benefits", "offense of sale, purchase or transport of false currency" or "a foreign exchange offence".

Always availablefraud, terrorists can take advantage of the convenience of the digital renminbi, the lack of public understanding of the digital renminbi and other conveniences soon after the birth of the digital renminbi, and use the definition considered to be the exchange and configuration of wallets in digital renminbi as gadgets . Since it is an asset, it is a crime of fraud. This breach is an important part of acquiring and exchanging traditional fraudulent communications, and the digital renminbi is often used as a tool to invest in the breach.

finally write

The digital renminbi market volume was more than 87.565 billion yuan, the main situation, strictly speaking, the renminbi is still in the early stages of development. Now only a dozen cities have started experimenting, and they have a lot of work to do. Not yet developed and tested, many apps still only support WeChat, Alipay payment.It will take some time for the digital renminbi to mature, but the future is here.