Editor's Note: This article comes fromBlockchain Camp (ID: blockchain_camp)Editor's Note: This article comes from
Blockchain Camp (ID: blockchain_camp)
Blockchain Camp (ID: blockchain_camp)
The proposal of blockchain technology is of great significance to reduce the cost of social credit and improve the social credit environment. At present, the application of blockchain technology in domestic commercial banks is still in the application exploration stage, but as domestic commercial banks deepen their understanding of this technology, more commercial banks will inevitably use blockchain technology one after another.
The competition of banks is becoming increasingly fierce. To gain a firm foothold in the market and develop steadily, it is necessary to keep an eye on the application and development trend of blockchain technology, and fully grasp the situation of international and domestic banking technology and finance in order to adjust the development strategy. Take timely and effective countermeasures. It is of practical significance to study the application of blockchain technology in commercial banks.
This article first introduces you to the overall framework of the central bank's digital currency and its implementation model.
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General Framework for Central Bank Digital Currencies
1. The operating framework of the central bank's digital currency
The operating framework of the central bank's digital currency has two modes: one is that the central bank directly issues digital currency to the public; the other follows the traditional central bank-commercial bank dual model. In the first case, the central bank directly provides legal digital currency issuance, circulation, and maintenance services to the whole society; Banking business library, commercial banks are entrusted by the central bank to provide legal digital currency deposit and withdrawal services to the public, and work with the central bank to maintain the normal operation of the digital currency issuance and circulation system.
Central bank management favors the latter. the reason is simple:
One is that it is easier to gradually replace banknotes with legal digital currencies under the existing currency operating framework without subverting the existing currency issuance and circulation system;
The second is to mobilize the enthusiasm of commercial banks to jointly participate in the issuance and circulation of legal digital currency, appropriately disperse risks, and accelerate service innovation.
In the dual mode, the central bank is responsible for the issuance, verification and monitoring of digital currency. After commercial banks apply for digital currency from the central bank, they directly face the society and are responsible for providing digital currency circulation services and application ecosystem construction services.
The participants in the first layer include the central bank and commercial banks, involving the issuance, withdrawal and transfer of CBDC between commercial banks. The transfer between the bank's issuance library and the commercial bank's bank library will increase or decrease the total amount of CBDC in the entire society, and ensure that the total amount of central bank currency issuance remains unchanged in terms of mechanism;
The second layer is CBDC access from commercial banks to individual or corporate users, and CBDC is transferred between commercial bank libraries and personal or corporate digital currency wallets;
The third layer is the circulation of CBDC between individual or business users, and the CBDC is transferred between personal or business digital currency wallets.
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Central bank digital currency operation diagram
2. The core elements of the central bank digital currency system
The core elements of the central bank's digital currency system are "one currency, two warehouses, and three centers".
One currency refers to CBDC: an encrypted digital string representing a specific amount guaranteed and signed by the central bank; two libraries refer to the central bank's issuance library and the commercial bank's bank library, and also include the use of CBDC by individuals or unit users in the circulation market. Digital currency wallet; the three centers refer to the certification center, registration center and big data analysis center.
Authentication center: The central bank centrally manages the central bank's digital currency institutions and user identity information. It is a basic component of system security and an important part of controllable anonymous design.
Registration Center: Record the identity of CBDC and corresponding users, complete the registration of ownership; record the flow of water, and complete the registration of the whole process of CBDC generation, circulation, inventory verification and demise.
Big data analysis center: anti-money laundering, analysis of payment behavior, analysis of regulatory indicators, etc. The prototype system needs to explore the expression form of CBDC, on this basis, establish the central bank digital currency system and the commercial bank's in-line system, and realize the functions of the central bank's issuance library and the commercial bank's bank library respectively. Since the first phase of the prototype system mainly solves the closed loop from the central bank to the commercial bank, the content of the digital currency wallet is not involved at this stage.
According to the principle of gradual and orderly progress, the first phase of the prototype system focuses on the registration center, realizes the ownership registration of the whole process of CBDC issuance, transfer, and withdrawal, records the CBDC transaction process, and expands the registration center to provide online confirmation query services. The authentication center is mainly responsible for the identity authentication and management of commercial banks in the first phase of the prototype system. The big data analysis center is not involved in the first phase of the prototype system.
3. Issuance and return mechanism
The existing central bank monetary system based on the account model is to realize the central bank's currency injection and withdrawal through the establishment of deposit electronic accounts in the central bank by commercial banks. For the new currency form of CBDC, without changing the total amount of money issued by the central bank, it is necessary to design a mechanism for currency exchange with existing electronic accounts, and to explore the feasibility of issuing and withdrawing CBDC within the framework of existing currency operations. mechanism.
In the issuance stage, the deposit reserve of commercial banks is deducted, and the CBDC is issued in equal amounts. In the withdrawal stage, after the CBDC is abolished, commercial bank deposit reserves will be increased in equal amounts. Because it involves changes in deposit reserves, the prototype system is realized by connecting to the central bank accounting data centralized system (referred to as the central bank accounting system).
The issuance process is shown in the figure below. The commercial bank’s digital currency system initiates an application to the central bank’s digital currency system. The central bank’s digital currency system first conducts control and approval. This step is reserved for the central bank’s implementation of supervision and expansion functions. Afterwards, a deposit reserve deduction instruction is initiated to the central bank accounting system, and the central bank accounting system deducts the commercial bank deposit reserve and increases the digital currency issuance fund by the same amount.
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The withdrawal process is shown in the figure below. The commercial bank’s digital currency system initiates a deposit application to the central bank’s digital currency system. After the central bank’s digital currency system conducts control and approval, it first invalidates the deposited CBDC, and then initiates a deposit to the central bank’s accounting system. The reserve increase instruction, the central bank's accounting system deducts the digital currency issuance fund. At the same time, the deposit reserve of the commercial bank is increased by the same amount. After the completion, the central bank's digital currency system notifies the commercial bank of the successful withdrawal.
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Central Bank Digital Currency Withdrawal Process
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Architecture Implementation Patterns
Through the unified consideration of the software and hardware infrastructure, application functions, and business data of the prototype system, a prototype system with supporting functions and technical verification that conforms to the current CBDC operating framework is formed. The whole system is divided into three parts: the central bank digital currency prototype system related to the central bank and the central bank accounting test system, the commercial bank internal system participating in the prototype experiment, and the digital bill trading platform as the CBDC transfer experiment scenario.
The central bank digital currency prototype system includes the following parts.
(1) Registration Center: Record the issuance of CBDC, CBDC ownership information, and complete the registration of the whole process of CBDC issuance, transfer and withdrawal. Its main functional components include issuance registration, rights confirmation release, rights confirmation query website application, and distributed ledger services. Issuance registration carries out the issuance, return process and ownership records of CBDC; the release of rights will desensitize the ownership information of issuance registration and release it to the CBDC rights confirmation distributed ledger; the rights confirmation query website provides commercial banks with online ownership queries Services; distributed ledger services ensure the consistency of CBDC ownership information between the central bank and commercial banks.
(2) Authentication Center: Centralized management of CBDC user identity information is a basic component of system security and an important part of controllable anonymity design. Its main functions include two parts: authentication management and CA management. In the first phase of the prototype system, it provides organization verification and certificate management functions. In the future, it can build authentication support for end users based on technologies such as IBC (Identity-based Cryptography) .
(3) Big data analysis center: including functions such as KYC (Know Your Customer, fully understand your customers), AML (Anti Money Laundering, anti-money laundering), payment behavior analysis, regulatory control index analysis, etc., it is the core of CBDC risk control and business control Based on the basis of the prototype system, the function of the big data analysis center in the first phase has not yet been realized.
(4) CBDC basic data set: maintain the complete data resources of the central bank's digital currency system, including not only the data generated by the business process of CBDC issuance and withdrawal, but also the data generated during the transfer process; and use distributed ledger services to carry out ownership information The registration experiment provides data support for the CBDC issuance registration business and data analysis business.
(5) Operation management system: Provide configuration, management, monitoring and other functions in the operation process of the entire central bank digital currency prototype system.
(6) Central bank digital currency system front-end: It is the entrance for commercial banks to access the central bank digital currency prototype system, and provides information forwarding services between the commercial bank’s core business system and the central bank digital currency prototype system. The main functions include message receiving, forwarding, signing, verification, etc.
(7) Issuance registration subsystem sub-node: It is the entrance of the digital bill exchange and the central bank's digital currency prototype system. Its main functions include CBDC transaction confirmation, communication with the central bank node of the digital bill system distributed ledger, and other operations.
