Some time ago, it was brushed by the digital yuan. In addition to announcing the expansion of the third batch of pilot cities, Shenzhen even directly took out 30 million yuan to distribute a large number of digital yuan red envelopes for promotion. This unabashed money delivery operation directly proves that the era of digital yuan has really come. Some people here may ask, since mobile payment is so convenient now, why push the digital yuan? That's probably a far underestimation of the role of the digital yuan.
From the perspective of application fields, there are various scenarios offline. In the pilot theme activities in Shenzhen's Luohu District, large shopping malls, shopping malls, fast food restaurants, gas stations and other businesses can apply digital yuan. The scenes using digital yuan are all offline stores, and the pilot theme activities in Xiangcheng District of Suzhou City first used the payment according to digital yuan when purchasing directly operated products in Jingdong Mall, and Jingdong became the first online scene connected to digital yuan in the pilot.
From the shape of the wallet, "soft and hard at the same time", the scope of application is strong. Rmb wallets, dominated by the shape of mobile phone software. In the rain of digital RMB red envelopes, the winning bidder downloads, applies for registration, and opens its own digital technology wallet of the selected financial institution. Internationally, there are two forms of digital yuan wallets. One is a mobile phone software wallet and a hardware configuration wallet. In other words, the mobile software wallet stored in the form of an app on the mobile phone and the "hardware configuration wallet" stored in the form of a "processing chip". In the Shanghai quiz, you can also use the "video card" as a wallet, display information such as turnover and account balance on the interface, and cooperate with the smartphone APP. In the Beijing test, BOC and China Unicom collaborated to release smart gloves, smart bracelets, illegal handling and other smart wearable devices, and placed digital yuan wallet processing chips in the facilities, which can be touched to achieve payment. A variety of wallets can better achieve the application habits of different groups that include the elderly.
At the same time, citizens with a delivery address in Xiangcheng District can choose the Jingdong Mall self-operated goods cash on delivery scenario and use digital yuan to pay. In addition, Xiaomi's Tianxing Digital Branch and so on are also involved, and digital RMB red envelopes can be consumed without threshold in many offline Millet stores in Suzhou. Since then, several rounds of digital RMB red envelope activities have supported offline and online scenes at the same time, covering the fields of living expenses, catering services, transportation, shopping consumption, and government services.
Here is the definition of the digital yuan, which is the legal tender in digital form issued by the Chinese Bank. The point is that Chinese Min Bank simply understands that the digital yuan is a currency and legal tender, but it is different from the digital form. As long as you understand this, you can understand that it is not in the same place as a mobile payment tool such as a treasure or a WeChat. For example, the digital yuan is money, the mobile payment software is the wallet, which belongs to the deposit currency settlement of commercial banks, and the digital yuan is the cash that can be directly circulated, as the legal tender, no one can refuse.
On top of that, mobile payment software acts as an intermediary to charge, with the exception of individuals. You have to pay fees to some first-line merchants, you have to provide privacy and information in exchange for endless advertising, and digital yuan is free. After all, when did you ever hear that there was a fee for spending money?
So how can there be a digital yuan?
If you want to own a digital yuan, you must first have a digital yuan wallet, and then you can fill it with money. After real-name authentication, you can recharge with a bank card. Of course, you can also get friends and relatives to give you money. With the digital yuan, you can go out and splurge. In addition to regular online payment methods, digital yuan also supports dual offline payments. Even if there is no signal and network, it can be paid by touch.
In addition, the digital RMB wallet can also be split into multiple wallets and pushed to other apps for online consumption, without the need to tie a card. The use of digital yuan is an anonymous payment, avoiding the collection of information such as the object of the transaction, the location, and the amount. Of course, this anonymity is also controllable within the scope of security. In the fight against some illegal transactions, transaction information is disclosed to the relevant departments, and if large payments are required, information is also required for tracing.
Like cash and paper money, each digital yuan has a unique number and transaction record, there is no way to tamper with the account, there is no way to forge or copy, and it can accurately track and combat illegal and criminal activities through algorithms. Law enforcement agencies can recover the stolen money by tracking according to tussocks, and even telecommunications fraud. And the most user-friendly thing is that the digital yuan has launched a hardware wallet for the elderly and children. After setting the amount and the number of offline transactions, a card is enough to go out. So, is the renminbi the same as a digital currency like Bitcoin?
Are digital yuan and bitcoin the same thing?
Of course it's not the same. The digital yuan issued by Chinese Bank is a centralized legal tender endorsed by the government, while cryptocurrencies such as Bitcoin are decentralized virtual assets. Its value is the value of consensus, there is no sovereign credit guarantee, and its value will be unstable due to market fluctuations. The digital yuan is equivalent to RMB 1:1. By adopting the process of bank card deposit conversion, banks are required to pay a $1 rmb reserve to the central bank for every $1 yuan exchanged, eliminating inflation. Of course, the role of the digital yuan is not only reflected in convenience, but also has higher strategic significance. The most important point is that the digital yuan can accelerate the internationalization of the renminbi and counter the hegemony of the us dollar.
As we all know, from the Bretton Woods system to the dollar oil system, the dollar has been a powerful weapon for the United States to plunder the world's property. Trade between China and the United States is usually settled in us dollars, and Chinese companies need to convert dollars into renminbi through the Chinese Bank for domestic use, so these dollars will naturally become China's dollar reserves. China's current dollar reserves are about 31,000 yuan. With the continuous improvement and expansion of China's influence, the digital rmb digital currency, as the first sovereign credit guarantee, backed by a strong motherland, may build a new system of world currency that is more fair, convenient and efficient.
The digital yuan has many advantages, such as the low distribution cost of the digital yuan. This saves money minting costs, and the digital yuan is easy to carry, and paper money is easy to lose or steal. Digital yuan is not easy to steal, and the security factor is high. The digital yuan does not need to bind any bank account, free from the control of the traditional bank account system. Digital yuan trading is convenient. The digital yuan uses dual offline payment technology. As long as the digital yuan wallet is installed, it can be used without a network. As long as the phone has power, touch both phones to complete the transfer or payment. The digital yuan can be anonymized, which is conducive to privacy protection. For some micropayments, anonymous payments can be realized to protect personal privacy. All in all, the digital yuan can improve the convenience and security of retail payments and promote the accelerated development of China's digital economy.
With the improvement of the overall strength of the mainland economy, the influence of the RENMINBI in the international payment management system has continued to grow, which has paved the way for the sale of digital renminbi. From the perspective of international payments, in the ranking of key token payment amounts in 2021, the international payment share of the renminbi rose to 2.70%, becoming the fourth largest token to replace the yen. From the perspective of international reserves, the share of the renminbi continues to grow, and in the third quarter of 2021, the market share of the renminbi in the global international reserves rose to 2.66%, ranking fifth in the world.
The overall strength of the mainland's economy has been further strengthened. On the other hand, in 2021, the total output of the mainland economy will reach 1143670 billion yuan, the average GDP will reach 80976 yuan, and the conversion will be 12551 US dollars according to the average annual exchange rate, which means that the mainland is gradually ranked among the middle and high-income countries, and the market demand in the future is extremely large. On the other hand, gradually from 2013, the mainland has become the world's largest trading country, especially by the new crown epidemic, the mainland's export trade has increased rapidly, in 2021, the mainland's annual import and export trade in goods will reach 39.1 trillion yuan, an increase of 21.4%, which will further strengthen the impact on the international payment of data in RMB.
As of the end of February 2022, the number of users on the mobile phones of the three telecom network companies has reached 1.651 billion, and the number of threads of 5G smart machine terminal equipment has reached 520 million, giving a large number of experimental scenarios for virtual currencies.
What are the basic problems to be solved by implementing the digital yuan?
There is no clear timetable for the in-depth promotion of the renminbi. From a practical point of view, the announcement of the opening of the digital yuan still encounters the following tests.
First, the digital yuan must establish a precise and precise positioning of the correlation with other means of payment. Whether the digital yuan can be universally applied is driven by specific requirements rather than current policies, and the sales market is the conclusion of the theory of natural selection, which must be precisely positioned to highlight the advantages and attractiveness of differentiation. Therefore, it is necessary to establish a solution to the relationship between the digital yuan and the current means of payment. Be sure to be located in M0, configure only the basic payment function, and take advantage of convenience, security, and low cost. The digital yuan cannot replace third-party payment tools such as mobile WeChat and Alipay, and can promote the interconnection between different payment instruments. Depending on the means of payment in the future, the different functions must be further integrated according to the plan.
Second, the popularization of the digital yuan is inseparable from the corresponding digital hardware and software, technology and the use of outstanding talents. The use and marketing promotion of the digital yuan depends on the full application of hardware and software, mobile terminals, IC cards, smart wearable devices and other hardware configurations, financial industry and business APP, computer operating system, database query and other mobile phone software Central Bank Digital Loan Research Office Changchun City Mu mu in addition, digital yuan multi-scenario app APP application and smart contract loading must also be blockchain technology, Internet of Things technology, Internet big data and other digital service support, Digital yuan operation and management also require relevant professionals to provide services. In other words, the widespread use of the digital yuan is inseparable from the close integration of digital technology attributes and the digital transformation and development of the financial system.
Third, the long-term development trend of the digital yuan must have a sound mechanism design and mechanism allocation. The circulation of currency and commodities is related to economic development and the stability of the financial system, and the digital yuan must be promoted at the level of ensuring the smooth operation of the financial system. At this stage, the digital yuan has basically completed the two-layer security protection management system, but it is necessary to further improve and improve the design of the relevant mechanisms to fill potential technical system vulnerabilities and prevent potential risks such as hacker attacks, data leakage, counterfeiting, and business process interruption. Based on the long-term development trend of the digital yuan, in the mainland, it is necessary to improve the systematic distribution of rules and regulations for the digital renminbi, create a professional legal system and various policy management systems, and strengthen the control and risk control of the life cycle of digital renminbi projects.
The development prospects of the digital yuan
In the short term, the development trend of the digital yuan should be based on the Chinese sales market and gradually improve the role of retail payment. The design and launch of central bank digital tokens is measured by innovative capabilities and specificity. The digital yuan is positioned in M0 and retail payment, and the two-way business model is selected, which is less harmful to the economic development of the financial system at the same time, and brings feasibility analysis to the stability of the promotion. However, correspondingly, it is not desirable to complete the role of overcapacity in the short term of the digital yuan.
Next, it is necessary to steadily promote the digital yuan pilot and complete a stable landing pilot when the conditions are ripe. On the other hand, the scope of implementation has been expanded again. By the end of 2021, a total of 260 million digital wallets have been set up across the country, and more than 8 million new projects have been piloted. In March 2022, the third batch of pilot megacities of the digital yuan was announced. In the future, the digital yuan should further expand the scope of experiments, summarize the available experience, and attach importance to the remote control of the digital yuan and the scope of application to designated groups. On the other hand, the use of the scene is colorful. At this stage, the digital yuan pilot has covered retail scenarios such as shopping transactions, catering operations, urban transportation, entertainment and leisure, living expenses, and government service centers, and is likely to be used in more abundant scenarios such as diagnosis and treatment, cultural education, and financial industry in the future.
In terms of corporate payment, it is possible to explore the application of digital yuan to the company's salary payment, provident fund business process, tax and insurance payment, project progress payment, etc. In addition, the standard payment and loan guarantee payment role of digital yuan loaded into smart contracts have been widely used in indoor space in scenarios such as prepaid style transactions, rental transactions, etc.
"The basic functions and characteristics of digital currencies are exactly the same as those of banknotes, but their shape has been digitized. Mu Changchun, president of the Digital Currency Research Institute of Chinese Min Bank, showed that the digital yuan developed Chinese min bank's products at this stage is not the data encryption property that some people understand, but the digitalization of the RENMINBI. Yi Gang, president of Chinese Min bank, previously released a comprehensive plan with the overall goal of closely integrating digital currency with electronic device payment means to replace part of the cash.
For customers, there is no significant difference between the application of digital yuan in the future and the current application of mobile payment. From the published materials, it can be seen that the sales system and operating mechanism of the digital yuan are different from the current renminbi, and they are also different from the current third-party payment methods such as mobile WeChat and Alipay, but there is no significant difference for customers.
In order to better integrate into the development of the social economy, Zhao Xijun said that the internet technology, electronic computers, communications and other technological progress, the economic situation and methods have also changed, and many business innovations have occurred. In the future, the total digital assets will become larger and larger, and thematic activities such as buying, selling, assessing, settling and paying in the digital rmb will be consistent with the digitization of economic development.
The two-way operation system software selected by the digital yuan has been decided, and its sale is not easy to cause great harm to the original financial system, nor will it cause harm to the overall economic development. It is understood that Chinese Bank does not immediately sell to the public in exchange, but first exchanges the digital yuan for a specific operation, and then exchanges it for the masses. This kind of two-way operation and management system is basically the same as the sale of banknotes, so it will not cause great harm to the current financial system, nor will it have a big impact on the real economy or financial stability.
The development of the digital economy is the increasingly key driving force for the improvement of the global economy and the main module of the high-quality development of China's economic development Yi Gang feels that the legal provisions stipulate that the product research and development and application of digital currency are conducive to reasonably meeting the requirements of the masses for legal tender in the development of the digital economy, beneficial to retail payment, security, anti-counterfeiting identification, and boosting the accelerated development of China's digital economy.
For China, the world's countries in the world at the same time apply the central bank digital currency, reducing the dependence of china's financial system on the US dollar, such as the world's application of virtual currency to clear international securities transactions, to meet the requirements of having blockchain assets, greatly improving the lure of the Chinese central bank's digital currency, which will objectively endanger the US dollar as the world's most critical savings and lending currency dominance, and get the opportunity to occupy new opportunities in international currency.
At the same time, the data yuan is constantly improving the application field. In the planning of Xiong'an New Area, the exploration and use of the two-line payment function of the data RMB hardware wallet bus travel scenario was first established. This is also the first time that the data RMB hardware wallet dual-line payment is used in the bus travel scenario. Payment is embedded in the public hardware wallet, so that when passengers hitchhike, they only need to "touch" to deduct the fee, which facilitates the user's application of digital yuan hardware wallet payment experience.
In the future, while further expanding the digital yuan pilot area, we will further enhance the detection information and application fields, explore the use of digital yuan in all stages of the company, experiment with the liquidity of the digital yuan within the enterprise, integrate business management systems and accounting informatization, create a company digital yuan ecosystem, promote the integration of digital yuan companies into various activities, and provide practical experience for the corresponding accounting processing guidelines.
Obviously, the era of digital yuan is coming!