Digital currency arrives in May, you must know this knowledge before using

  Intern reporter Dai Xiaopei

  Recently, the development of legal digital currency research and development in China has aroused widespread concern in the society. According to reports, the digital renminbi will be first tested in Shenzhen, Suzhou, Xiong'an New District, Chengdu and future Olympic Winter scenes. The district-level agencies, enterprises and institutions in Xiangcheng District, Suzhou, and the wages paid by the workers and peasants in the construction of the four state-owned banks will complete the installation of the central bank's digital currency (DC / EP) digital wallet by the end of April. Starting in May, 50% of the transportation subsidy in wages will be issued in the form of digital currency.

  Since the birth of Bitcoin, many people have doubts: How will digital currency affect our daily lives? To this end, a reporter from Science and Technology Daily interviewed Dong Ximiao, the chief researcher of Xinwang Bank, the chief researcher of Zhongguancun Internet Finance Research Institute, and Bi Tongtong, the co-founder of financial technology consulting company PANONY, to answer a series of hot questions caused by digital currency.

  1. What impact will the application of central bank digital currency have on daily life?

  Dong Ximiao: Renminbi (paper money and coins) is legal tender. According to laws and regulations, no institution or individual can refuse to use Renminbi. Similarly, the central bank's digital currency is the legal currency and is a digital RMB. Merchants cannot also refuse to use it, otherwise it will be illegal. In the future, as the central bank's digital currency is applied, users' payment options will be more abundant, more convenient and faster. As the basis of the entire financial activity, a more convenient and efficient payment method is conducive to reducing transaction costs and improving financial operation efficiency. In addition, the digital currency system helps trace transaction dynamics and capital flows, and helps prevent illegal transactions such as money laundering.

  Bi Tongtong: The implementation of digital currency will not happen overnight, and there will be a process of popularization. But what is certain is that the issuance and implementation of the central bank's digital currency will further promote the development process of China's "cashless society". For the public, the use of "electronic cash" in daily life will increase further. People in remote areas will appreciate the benefits of the central bank ’s digital currency more deeply. For example, the government or agency will provide cash subsidies to individuals. In the past, some people may not have a bank account. With the central bank ’s digital currency, everyone can download And register a central bank digital currency wallet, you can directly receive subsidies issued in the form of digital currency, which can effectively avoid the phenomenon of special funds being misappropriated.

  2. Will paper money be completely replaced?

  Dong Ximiao: Digital currency cannot completely replace cash. At least for now, there are some technical limitations. In addition, due to different user habits, not everyone is accustomed to this payment method. For example, some older people may not accept digital currency.

  Bi Tongtong: The central bank's digital currency will not completely replace the paper currency in a certain period of time, it will be used as a supplement to the daily payment method of ordinary people. Towards a "cashless society" is a long-term process that may take decades or hundreds of years to be truly realized.

  3. What are the similarities and differences between central bank digital currency and non-bank payments such as Alipay and WeChat?

  Dong Ximiao: The central bank's digital currency is legal tender, and WeChat Pay and Alipay are just one payment method, and their effectiveness is different. Specifically, institutions or individuals do not accept Alipay or WeChat payments, there is no legal problem. But it is illegal to refuse users to pay with cash or digital currency. In addition, the national credit is behind the legal currency, the commercial bank credit is behind the bank card payment, and the Internet corporate credit is behind Alipay and WeChat payment. These three belong to different levels. Compared with non-bank payment methods, the central bank's digital currency is more secure and widely used, and it does not need to bind bank accounts.

  Bi Tongtong: From the perspective of the public, in terms of experience, the central bank's digital currency and third-party payment are used in a similar way, and both require mobile terminal equipment. But the assets of ordinary people on Alipay and WeChat are actually a bookkeeping, and these two payment instruments are based on commercial bank settlement. Third-party payment tools such as Alipay and WeChat cannot transfer money, but the central bank's digital currency can break the barriers of the payment industry and circulate between supported banks and payment tools. At the same time, WeChat and Alipay are paid by real name, and the central bank digital currency can meet the needs of ordinary people to a certain degree of anonymous payment.

  4. Some analysts said that the central bank's digital currency will impact the status of Alipay or WeChat payment; others believe that the use scenarios of Alipay and WeChat payment are already very rich, and the launch of the central bank's digital currency may not bring too many surprises. Is that right?

  Dong Ximiao: The central bank's digital currency has no impact on Alipay or WeChat payment. The effectiveness of digital currency is not comparable to WeChat Pay and Alipay. After the official launch of digital currency, no matter the amount of payment, regardless of the nature of the payment, that is, whether it is to purchase goods, payment services, pay taxes, etc., no recipient can refuse to accept, but WeChat Pay and Alipay In this form, the recipient can freely choose to accept or reject. There may be a possibility that more and more people use the central bank's digital currency, and fewer and fewer people use Alipay and WeChat payment.

  Bi Tongtong: Whether the central bank's digital currency will impact the market position of WeChat Pay and Alipay. In the long run, this is a process determined by the market, but in theory it will not affect the status of Alipay and WeChat Pay. The central bank's digital currency will enter the lives of ordinary people as a supplementary payment method. It is foreseeable that Alipay and WeChat payment will also access the central bank's digital currency in the future, and the functions of payment tools will become more diverse, but the channels and scenarios have not changed.

  5. With the advent of the digital currency era, what new issues may be highlighted?

  Dong Ximiao: For the entire society, the application of digital currency on the ground can reduce transaction costs and improve the efficiency of financial operations, while also preventing money laundering and other illegal activities. However, it is still in the testing stage, and it will take time for the official application and even large-scale promotion. It will take some time for everyone to perceive and recognize the advantages of digital currency.

  Bi Tongtong: The advent of the digital currency era will change the existing social structure and institutional functions to a certain extent. Obviously, there may be the closure of the printing plant and the further reduction of bank employees, especially ordinary tellers and ATMs in the future. In addition, digital currency will also become a new means and guise for fraud by criminals. At present, there have been scams under the banner of the central bank's digital currency, and the central bank has also issued risk warnings many times. These are all new issues to be faced in the future.