The digital currency of the People's Bank of China has touched the hearts of countless people. However, people from all walks of life should support and encourage the central bank's digital currency that is under discussion, but it should not be overly touted.
Since the news came out in August that "China's central bank's digital currency is about to come out", the central bank's digital currency has become the focus of attention from all walks of life, and it has become a hot topic that must be discussed in various discussions and analyzes of major financial media and forums for many months. On October 24, the high-level leaders' attention to the blockchain once again pushed the whole society's attention to the central bank's digital currency to a new height.
Independence and objectivity are the basic professional accomplishment of a financial commentator, and also Uncle Kai's minimum requirements for himself.
Many media want to interview on this issue, but Uncle Kai generally declines politely, and even resorts to the diplomatic rhetoric of "not commenting on hypothetical situations". On some occasions that cannot be rejected, such as on-site questions and answers, Uncle Kai only makes very cautious inferences and guess.
It's a pity that people like Uncle Kai are unwelcome aliens.
Undoubtedly, the central bank's digital currency has been endowed with popular expectations, but the excessive attention of the public, the irresponsible exaggeration of opinion leaders, and the excessive exaggeration of the media have led to the central bank's digital currency being overhyped and even beginning to lose its shape.
Some people have begun to discuss how the central bank's digital currency will replace WeChat and Alipay, how it will impact the existing commercial and banking systems, how it will realize the internationalization of the renminbi, help the "Belt and Road Initiative", and how it will overwhelm Libra and challenge the hegemony of the US dollar. Overnight, the central bank's digital currency became a "panacea".
There are even unscrupulous merchants who claim to cooperate with the central bank on DCEP, and some institutions even use the name of the central bank to launch "DC/EP" or "DCEP" to trade on asset trading platforms in an attempt to conduct fraud and pyramid schemes. The central bank had to refute the rumors through official announcements several times in a row.
Facts speak louder than words.
What we have seen is that the central bank's digital currency has not yet been officially launched, and there is "no timetable" for its launch, and the technology does not necessarily use the blockchain. All the inferences are based on the few words revealed by the leaders of the central bank officials on different occasions.
After piecing together these fragmented information, there is only one table below.
Excessive speculation and hype on such clues is undoubtedly futile and harmful. In this extravagant feast, the media and opinion leaders have played a role in fueling the flames.
In many public discussion occasions, Uncle Kai couldn’t stand these groundless speculations and exaggerations. He couldn’t help but remind the audience that the root cause of the promotion of RMB internationalization is not in any form, and the central bank’s digital currency may not be effective. And at present overseas, whether it is for institutions or individuals, the RMB is already in electronic form, and the proportion of cash is extremely low, and the central bank's digital currency replaces cash, so it has little effect on the internationalization of the RMB. Taking a step back, assuming Uncle Kai’s lack of knowledge, maybe the central bank’s digital currency can really help the internationalization of the renminbi. It will not involve the complicated environment and regulations abroad until the central bank’s digital currency is implemented and matured in China. This is like talking about how fast a baby can run a 100-meter race before he can walk. It is meaningless. Moreover, strictly speaking, the central bank's digital currency has not yet come out, and it is not even a baby. At most it belongs to a fetus, and the birth is waiting to be determined.
However, all these remarks were blocked by the media and the organizers on the grounds that they were "inappropriate" and "politically incorrect". Uncle Kai was filled with righteous indignation. When did it start? There is no room for a calm, objective, and neutral analysis. Is it "timely" and "politically correct" to flatter? Did the morality of the media swim away with the scallops in Zhangzidao?
The central bank can't stand it anymore and came out to clarify. On November 12, at the sub-forum "Defining the Future of Digital Currency" of the 4th Singapore Fintech Festival, Mu Changchun, deputy director of the Payment Department of the People's Bank of China and director of the Digital Currency Research Institute, said that the Chinese version of the central bank's digital currency is both It is not aimed at cross-border payments, nor is it used for wholesale capital services like "Morgan Coin", but will provide more redundancy for China's already very advanced electronic payment system.
Obviously, the central bank's digital currency is not for the internationalization of the renminbi, nor will it affect the existing commercial banking system on a large scale. Now many opinion leaders have been slapped in the face. Although the memory of the masses may be short-lived, public speeches on the Internet are permanent. The way they were eloquent and boastful at the beginning will be passed on as a laughing stock.
In fact, everyone is so overly enthusiastic about it, but it has caused unnecessary pressure on the central bank.The central bank's digital currency system involves all aspects of the financial system, and the project is huge, and it is by no means an easy task, otherwise it will not be launched for a long time.
It is recommended that the central bank choose an opportunity to systematically announce its functions and structure, go back to the source, and set the record straight. This will not only prevent pyramid scheme fraud, but also lower market expectations. I'm afraid I don't know how it will end.
Instead of expecting too much and turning into disappointment, it is better to maintain a normal mind, maybe you can get unexpected surprises, this is a sign of a mature person.
For the central bank's digital currency, you might as well be a little more mature, calm and rigorous.
