If the digital RMB really comes, what impact will it have on everyone's life?

This is the original of the vernacular blockchain 1344.

Author | River News

Produced vernacular blockchain (ID: Hello BTC)

On June 5th, after Shenzhen (50,000 copies, each in 200 yuan), Beijing (200,000 copies, each in 500 yuan) and other places distributed digital RMB red envelopes to residents one after another, Shanghai followed suit and launched the "Digital RMB 55 Happy Shopping" red envelope activity-350,000 copies, each with the amount of 55 yuan.

As another routine test in the R&D process of digital RMB, it also means that China's legal digital RMB DCEP (digital currency/Electronic Payment) will be officially unveiled to the public, and it is getting closer and closer to enter and change our time window.

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Low-key stealth, digital RMB that has been at the forefront.

From June 2065438 to June 2009, after Facebook released the Libra White Paper, a private digital currency plan, it was a catalyst to some extent, forcing central banks to increase the original digital currency plan, which greatly stimulated their interest in digital currency CBDC, a globally stable monetary system.

Under the impact of the COVID-19 epidemic since 2020, the central banks of major countries in the world have obviously accelerated the research, testing and promotion of the concept of central bank digital currency. As the China version of CBDC, digital currency/Electronic Payment of the Bank of China should be one of the brightest stars.

But it may be contrary to the cognition of many ordinary people, especially the encryption circle. Although China is extremely cautious about the supervision of virtual currency, it is not completely backward in the practical research and application of blockchain technology.

Digital currency Research Institute of the Central Bank publicized recruitment information in previous years.

Especially in the research, testing and landing of digital RMB, China has actually been at the forefront of major countries in the world:

As of May, 20021,the pilot area of digital RMB has experienced several rounds of test scale expansion, from the initial small-scale practice in Suzhou and Qingdao to the latest test pattern in three first-tier cities (provincial administrative regions) such as Shenzhen, Shanghai and Hainan, and five major cities such as Chengdu, Changsha, Xi, Qingdao and Dalian except Beijing.

In short, the current overall coverage pattern can be summarized as "ten places and one scene", basically realizing the test requirements and landing arrangements for small steps and quick running, and having completed various preparatory work such as research and testing, it is really "ready to go".

What is the primary consideration for the launch of digital RMB? Will it have a fundamental impact on the current industry in digital currency?

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The core positioning of digital RMB is to realize "cash digitization" in the existing monetary system.

In fact, in a strict sense, compared with cryptocurrencies such as Libra and Bitcoin, digital RMB is not a one-dimensional thing, nor is it specially born for "dealing with Bitcoin".

Because it is different from the new "showstopper" status of the latter, which is out of the existing legal tender circle, the digital RMB is essentially a digital form of legal tender (strictly speaking, banknotes and coins). It may be more intuitive to compare the digital RMB with the progress of RMB in "printing technology":

Digital RMB only converts the RMB from the carrier form of paper (metal) into a digital string, and the sound waves at other levels remain unchanged-"issued by the central bank, it has the same legal status as paper money used daily, with the highest legal effect and security level".

Therefore, the purpose of issuing digital RMB by the central bank is mainly based on various problems exposed by the issuance of cash (banknotes and coins) in the existing monetary system: for example, cash (banknotes and coins) provides an excellent space for the breeding and growth of a series of illegal and criminal activities such as money laundering, corruption, drug trafficking, etc. At the same time, it also brings the central bank a monitoring corner to perceive the flow of economic and social funds, greatly reducing the feedback of monetary policy, and ultimately leading to the deviation of the central bank's monetary policy from the expected purpose.

Digital RMB instead of cash can obviously help the central bank solve the above problems in the existing monetary system:

1. Digital RMB can greatly reduce the issue and exchange costs.

According to the latest data of CEIC as of March, 20021year, China's RMB M0 (simply understood as cash such as banknotes and coins) has been rising continuously in recent five years, and now it has exceeded 8.65 trillion yuan, which requires high cash distribution costs (printing, distribution, escort, circulation, breakage and destruction, etc.). ) and the friction cost in the annual exchange process.

M0 growth 20 16-202 1

After the digital RMB system is completed at one time, it can greatly reduce the high cost in the process of cash issuance and exchange. Theoretically, in the future, only the operation and maintenance cost of the corresponding digital RMB system will decrease marginally year by year until it approaches zero.

At the same time, compared with cash, digital RMB can also improve the transparency and circulation efficiency in the circulation process, thus effectively improving the payment and settlement efficiency and the central bank's monitoring of the flow of funds.

Some friends may say that if we reduce the cost of issuing and exchanging banknotes and improve the ability to monitor the flow of funds, then the existing third-party payments such as WeChat payment and Alipay payment can be realized. Why bother to "reinvent the wheel"?

The key point is that third-party payment relies on traditional bank accounts, which cannot meet the two key needs of anonymous exchange and offline exchange, thus failing to complete the historical mission of replacing cash:

For example, when the public goes to the pharmacy to buy family planning supplies and other anonymous payment needs that want to realize privacy protection, the hundred-dollar bill is obviously superior to the third-party payment;

For example, in extreme cases, such as flight mode, remote mountainous areas, overseas exchange and other payment difficulties without network and payment system, and the paralysis of financial infrastructure caused by the earthquake, the hundred-dollar bill is also obviously superior to the third-party payment.

2. Digital RMB can be exchanged anonymously or offline.

Digital RMB solves the above two problems, thus completely realizing the advantage substitution for cash.

First of all, the digital RMB is loosely coupled in the account mode, which means that users can either choose to bind the digital RMB wallet to the bank account they have already opened, or choose to use the digital RMB wallet independently of the traditional bank account system, just like any wallet address at present, which can be generated and used independently of the bank account.

In this way, the closed-loop circulation of digital RMB in the consumption scene can be completely decoupled from the bank account, which is equivalent to the anonymous payment attribute of cash. Unless users need to recharge and withdraw cash between "digital RMB wallets-bank accounts", digital RMB between users can be transferred and paid, and there is no need to bind personal digital RMB wallets to individuals, which meets the unique anonymous payment scenario that RMB cash can only be paid by RMB cash.

In addition, by supporting the "double offline payment" of the payer and the payee, the digital RMB can realize the advantage of full coverage under the cash payment line, get rid of the dependence on the network, and still meet the payment demand in some specific usage scenarios.

In a word, the core goal of digital RMB is to realize the digitalization of RMB cash in the existing monetary system. At the same time, with the advantages of anonymous payment and offline exchange, it can completely replace the public's demand for cash payment, which is expected to help China finally realize the vision of "cashless society".

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Digital RMB helps the central bank to meet the challenges of stable currencies such as Libra.

After years of development, China's third-party payment is currently in a leading position in the international market scale and use form, and the infrastructure for users' education and businesses has been basically sound. Electronic and digital payment forms have become the main trend.

However, the traditional cash payment is gradually declining in the explosive growth of third-party payment, and private digital currency is also increasing the demand for differentiated digital payment. Both of them weaken the influence of the central bank's monetary policy to a certain extent, and also bring great challenges to the realization of the central bank's payment and settlement supervision ability.

Therefore, the launch of digital RMB is just the right time. As a digital legal tender endorsed by the national credit and issued by the central bank, it can further improve the efficiency of the payment system through the digitalization of legal tender on the basis of the market education of third-party payment, which can not only meet people's demands for safe, efficient, private and convenient payment, but also improve the convenience level of RMB payment.

More importantly, it can also reduce people's dependence on mobile payment on third-party platforms such as Alipay and WeChat, effectively cope with the technological innovation impact of global stable currencies such as Libra, enhance the robustness of China's existing payment system, and protect the monetary sovereignty and legal tender status of RMB.

Therefore, although the core positioning of digital RMB is to upgrade and strengthen the existing RMB system in China, it is obviously more competitive than the existing monetary system in the face of the stable currency represented by Libra, especially the new dimension of the game between digital currency and monetary sovereignty.

The author has also applied for the digital RMB red envelope activity in Shanghai at the first time, and friends in Shanghai can also try it, expecting our digital RMB to formally meet with you as soon as possible.