Pilot consumption scenarios are more diverse and will become an important supplement to electronic payment

  The digital renminbi is closer to us (online China)

  The Central Bank recently announced the "People's Bank of China Law of the People's Republic of China (Revised Draft for Solicitation of Comments)". The draft opinion improves the regulations on RMB management and proposes that RMB includes both physical and digital forms, which will provide a legal basis for issuing digital currencies.

A few days ago, the Shenzhen Municipal Government and the People's Bank of China launched a pilot digital renminbi red envelope, and 50,000 citizens shared 10 million digital renminbi red envelopes.

All signs indicate that the digital RMB is getting closer and closer to us!

Digital RMB red envelope unveiled

  With a beep, Chen Yang, a citizen of Shenzhen City, completed the QR code payment with digital RMB.

"I ran out of red envelopes before the deadline." The shopping bag contained the snacks he had just picked from China Resources Vanguard Supermarket. "I was very happy to receive the red envelopes from the text message. I ran here to buy daily necessities. , I was reluctant to spend later, and kept it till now."

  Chen Yang is one of 50,000 "lucky ones".

As one of the four pilot cities for the central bank to implement digital renminbi, the Shenzhen Municipal Government and the Central Bank recently joined forces to select 50,000 out of more than 1.91 million applicants through a “lottery” method, and distribute a red envelope worth 200 yuan to personal digital RMB wallets can be consumed at designated merchants within the validity period.

  The 3389 merchants participating in the event covered catering, supermarkets, gas stations, subway transportation, department stores and other fields. The data released by the relevant departments of Shenzhen on October 19 showed that within the experience period of nearly a week, the number of RMB was achieved. There were 62,788 red envelope transactions with a transaction amount of 8.764 million yuan.

  Since the beginning of this year, the central bank's digital currency trial has accelerated significantly. Currently, the digital renminbi has undergone internal closed pilot tests in Shenzhen, Suzhou, Xiongan New District, Chengdu, and future Winter Olympics scenarios.

In Suzhou, civil servants have received wage subsidies in digital renminbi.

In Shenzhen, 5,000 medical workers who have made important contributions to the prevention and control of the new crown pneumonia epidemic have used digital RMB red envelopes to spend at designated merchants.

The digital renminbi red envelope test was expanded to 50,000, allowing more consumers to experience the convenience, efficiency and security of digital renminbi payment in more scenarios.

  At the same time, the issuance of digital currency will also receive legal support.

The Central Bank recently promulgated the "Law of the People's Republic of China on the People's Bank of China (Revised Draft for Solicitation of Comments)", which has improved the renminbi management regulations and proposed that the renminbi includes physical and digital forms.

At the same time, it is clear that no unit or individual is allowed to produce and sell token tickets and digital tokens.

According to relevant people from the central bank, this will provide a legal basis for the issuance of digital currency and prevent virtual currency risks.

Pay without internet connection

  The reporter learned that the Shenzhen digital renminbi red envelope can be used in two ways: barcode payment and non-contact payment based on near field communication technology (NFC). The mobile phone can be "scanned" or "touched" within milliseconds. Complete payment.

  From the perspective of usage, the digital renminbi seems to be similar to mobile payment methods such as Alipay and WeChat at first glance.

So, what is the difference between the two?

  In this regard, Mu Changchun, director of the Digital Currency Research Institute of the People’s Bank of China, said that WeChat Pay, Alipay and digital renminbi are not in the same dimension. The first two are financial infrastructures and "wallets", while digital renminbi is a payment tool. The contents of the wallet.

The "wallets" of WeChat Pay and Alipay contain commercial bank deposit currencies. After the digital renminbi is issued, everyone can still use WeChat Pay and Alipay to pay, but the contents of the "wallet" have added central bank currency.

  Mu Changchun described the use of digital renminbi in this way: as long as both mobile phones have digital renminbi digital wallets, there is no need for the Internet, as long as the mobile phones have electricity, the two mobile phones can "touch" the digital wallet of one party Transfer of the digital currency to the other party.

In this way, the problem that mobile payment cannot be used normally due to poor network in some remote areas will be solved.

The advantages of no need to bind bank accounts and no handling fees are also attractive to ordinary consumers.

  Mu Changchun said that holding paper banknotes does not count and pay interest, so digital renminbi does not count and pay interest.

From this perspective, digital renminbi will not impact third-party mobile payments.

He believes that, as a pure public product, the digital renminbi will become an important supplement to electronic payment, instead of seeking alternative payment methods.

In fact, Ant Group and JD Digital have been deeply involved in the promotion of digital RMB research and development trials and landing applications.

  However, because the current digital currency is still in the pilot phase, "there is still a gap with real currency, and there are restrictions on the use period and scenarios, and transfers cannot be made." Chen Yang said.

Seize the commanding heights of future finance

  Experts believe that the digital renminbi has a bright future.

Although the current role of digital currency is limited, the central bank digital currency piloted in Shenzhen is an important attempt, and its signal significance is greater than the short-term impact.

The purpose of the pilot is to explore innovative development models, and strive to form a diversified, high-performance, sustainable development model and development path conducive to the innovation of service trade formats.

The digital renminbi will have a profound impact on the innovative development of China's service trade and the promotion of the facilitation of the digital business environment.

  If you look at this initiative from an international perspective, its significance is even more self-evident.

According to a survey conducted by the Bank for International Settlements of 66 central banks in the world in 2019, 80% of central banks are already conducting research on digital currency, 40% of central banks have entered the stage of experimental demonstration, and 10% of central banks have launched pilot projects.

With the development of science and technology, the technical feasibility of central bank digital currencies continues to increase, and countries have begun to intensively deploy in the field of central bank digital currencies.

According to reports, in January this year, Britain, Switzerland, Sweden, Japan, and Canada began to study the potential application scenarios of central bank digital currencies.

  Wang Peng, a researcher at the Chongyang Institute of Finance of Renmin University of China, believes that the form of monetary payment will change with the development of science and technology.

In recent years, the decentralized virtual currency represented by Bitcoin has challenged the traditional financial system.

The People's Bank of China has steadily launched, developed, and tested digital currencies, which are important measures to maintain financial security.

  China's digital currency research and development is at the forefront of the world.

It is understood that the central bank has started digital RMB research and development since 2014, and it has been advancing rapidly in the past two years.

At present, the top-level design, standard formulation, function research and development, joint debugging and testing have been basically completed, and the principles of stability, safety, controllability, innovation and practicality have been followed. The internal closed pilot test is carried out first to continuously optimize and improve the functions.

At present, the digital currency piloted by the Central Bank of China will bring new changes to the digital currency of the international central bank.