What's the meaning of RMB becoming digital currency

For many people, the concept of digital currency is a mystery. But there is no doubt that digital currency is different from virtual currency

Digital RMB is the legal digital currency not yet issued by the people's Bank of China, namely "digital currency electronic payment" (DC / EP). Based on the generalized account system, it supports the loose coupling function of bank account, is equivalent to banknotes and coins, and has value characteristics and legal compensation

on August 14, 2020, the Ministry of Commerce of the people's Republic of China issued the "overall plan for comprehensively deepening the innovation and development pilot of service trade", which mentioned that "digital RMB pilot projects should be carried out in Beijing Tianjin Hebei, Yangtze River Delta, Guangdong, Hong Kong, Macao and other pilot areas in central and Western China."

on October 8, 2020, the Shenzhen Internet Information Office of Guangdong Province announced that in order to promote the construction of Guangdong, Hong Kong and Macao Dawan district and in combination with the local consumption promotion policy, the Shenzhen Municipal People's government recently launched a pilot project of digital RMB red envelope with the people's Bank of China

digital renminbi is what

first, the most typical question is what is the difference between digital Renminbi and Alipay and WeChat payment? p> Basically speaking, digital RMB is equivalent to banknote and coin RMB, which is a legal currency with value characteristics and legal compensation. The three party Internet payment methods such as Alipay and WeChat payment mainly rely on deposit money transactions in commercial bank accounts, which is essentially a payment channel for legal tender. Digital Renminbi belongs to M0, that is, the category of cash in circulation. The money that people put in Alipay and WeChat accounts are deposits of non deposit financial institutions. They belong to the category of M2, that is, broad money. p>

CCTV reported that compared with the third-party payment tools, the use of digital RMB is more convenient:

the payment path is short: there are only two points of payer and payee, and the transaction can be completed within a few milliseconds without any third-party platform

double offline payment: when the mobile phone has power, it can spend digital RMB even if there is no network

controllable anonymity: to protect the privacy of consumers, in addition to the government departments investigating illegal transactions within the scope of authority, merchants and third-party payment platforms have no right to obtain the payment data of consumers, and consumers are free from marketing intrusion

in addition to the obvious advantages of easy use and cracking down on counterfeit money, the future implementation of digital RMB can better help the state to regulate currency circulation, fight corruption, anti money laundering, and fight crime; In terms of macro-control, it can optimize monetary policy, achieve targeted poverty alleviation, accurately support the development of real economy, and promote the internationalization of RMB

1. For commercial banks and other financial institutions, it is both an opportunity and a challenge. In the future, more innovations such as digital credit, digital assets and digital liabilities will be derived from digital currency, while the non sovereign "digital right currency" will graally cool down. In addition, the central bank can improve the efficiency of monetary operation monitoring and enrich monetary policy means after the issuance of digital currency

2. Issuing the legal digital currency of the central bank will make it possible to collect the data of money creation, bookkeeping and flow in real time. After data desensitization, it will conct in-depth analysis through big data and other technical means, so as to provide a useful reference for money supply, formulation and Implementation of monetary policy, and provide a useful means for economic regulation and control

extended data:

characteristics of digital currency

Central Bank digital currency is quite different from electronic payment in some functions. In the past, the fund transfer of electronic payment instruments must be completed through the traditional bank account, which adopts the way of "account tightly coupled"

and the central bank's digital currency is "account loose coupling", which can be separated from the traditional bank account to realize the value transfer and greatly rece the dependence of the transaction link on the account. The digital currency of the central bank can be as easy to circulate as cash, which is concive to the circulation and internationalization of RMB. At the same time, it can realize controllable anonymity

Digital RMB is legal tender with unlimited legal compensation. Unlike the three party payment tools such as WeChat Alipay, the use of digital Renminbi can be completed without binding the bank account. p>

in transaction payment, no unit or indivial can refuse to accept digital RMB. To make payment more convenient while ensuring safety is the first consideration of digital RMB. The central bank's digital currency DC / EP adopts a two-tier operation system. The people's Bank of China issues digital currency directly to the public

extended information:

the introction of digital RMB is as follows:

it is mainly used in the high-frequency business scenario of small retail. It adopts a two-tier operation system. The central bank first exchanges the digital currency to banks or other operating institutions, and then these institutions exchange it to consumers. It is understood that digital RMB is not a virtual currency, nor an online payment or e-wallet, but a legal digital currency issued by the central bank based on national credit

for financial innovation, it can not be completely realized. In this case, the relevant representatives of the central bank put forward the relevant contents of digital RMB and pointed out that the era of digital RMB is coming

it is understood that the digital RMB adopts a two-tier operation system, that is, the people's Bank of China first converts the digital currency to banks or other operating institutions, and then these institutions convert it to the public, so that the public can use it directly. The single tier operation system is that the people's Bank of China issues digital currency directly to the public< What is the difference between br />
Digital Renminbi and Alipay and WeChat?

at present, many cities across the country are experimenting with digital RMB red packets, and the use scenarios have expanded from the initial support of offline scenarios to online payment scenarios. As long as the mobile phone is equipped with digital RMB app and personal digital wallet, residents can use digital RMB

some people also compare the digital Renminbi with Alipay and WeChat payment. For this reason, mu Changchun also mentioned in the second the Bund financial summit held in October last year that WeChat, Alipay and digital RMB are not in one dimension. WeChat and Alipay are financial infrastructure and wallet, while digital renminbi is the payment tool and the content of the wallet. Br />
mu Changchun said that in the electronic payment scenario, WeChat and Alipay's wallet contained commercial bank deposit money. After the issuance of the digital renminbi, they could still pay with WeChat and Alipay, but the contents contained in the purse increased the central bank's currency. At the same time, Tencent and ant's respective commercial banks are also operating institutions, so there is no competition with digital RMB