On June 5, after Shenzhen (50,000 copies, 200 yuan each), Beijing (200,000 copies, 500 yuan each) and other places successively distributed digital RMB red envelopes to residents, Shanghai followed suit and opened the "digital renminbi red envelope". RMB 55 Happy Shopping" red envelope activity - a total of 350,000 copies, each with an amount of 55 yuan.

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01 Low-key stealth, the digital renminbi has been at the forefront

In June 2019, after Facebook released the white paper of Libra, a private digital currency project, it was a catalyst to some extent, forcing central banks to speed up their original digital currency plans, which greatly stimulated the central banks of various countries to implement central bank digital currencies ( CBDC) and interest in the global stablecoin system.

Under the impact of the new crown epidemic since 2020,The central banks of major countries around the world have significantly accelerated their conceptual research, testing and promotion of central bank digital currencies.Among them, as the Chinese version of CBDC, my country's central bank digital renminbi (Digital Currency/Electronic Payment) should be one of the brightest stars.

However, it may be contrary to the cognition of the general public, especially many friends in the encryption circle. Although my country’s supervision of virtual currency is frequent and its attitudes and measures are extremely cautious, it is not in the actual research and application of blockchain technology. Not quite in the background.

Public recruitment information of the Central Bank Digital Currency Research Institute in previous years

Especially in the research, testing, and implementation of digital renminbi, my country has actually been at the forefront of major countries in the world:

• In 2014, the central bank set up a special group and opened the curtain of digital currency research in my country;

• In January 2016, the central bank held a seminar, and for the first time made it clear that the issuance of central bank digital currency should be realized earlier;

• In December 2016, the blockchain-based digital bill platform was successfully tested, and the legal digital currency was initially put into trial operation;

• In July 2017, the Institute of Digital Currency was officially established;

• In August 2019, the central government issued a document to carry out digital currency research and mobile payment pilots in Shenzhen;

• In April 2020, pilot projects related to legal digital currency took the lead in trial operation on the clients of Agricultural Bank of China and Bank of China;

In short,

In short,At present, the overall coverage pattern can be summarized as "one scene in ten locations", which has basically fulfilled the test requirements and implementation arrangements for small steps and quick runs, and has completed all preliminary preparations such as research and testing.Really "ready to come out".

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02 The core positioning of the digital renminbi is to realize the "digitalization of cash" in the existing currency system

In fact, strictly speaking, the digital renminbi is not a one-dimensional thing compared with Libra, Bitcoin and other cryptocurrencies, nor is it born specifically to "deal with Bitcoin".

Because it is different from the latter's brand-new "spoiler" identity that escaped from the existing credit legal currency circle, the digital renminbi is essentially just the digital form of legal currency (in the strict sense, banknotes, coins). "Technology" may be more intuitively understood:

The digital renminbi just converts the renminbi from the carrier form of paper (metal) to a digital string, and the sound of waves on other levels remains——"Issued by the central bank, it has the same legal status as banknotes in daily use, and has the highest legal effect and security level."

Therefore, the purpose of the central bank's issuance of digital renminbi is mainly based on the various problems exposed in the issuance of cash (banknotes, coins) in the existing monetary system: The breeding and growth of criminal activities provides an excellent space. At the same time, it also brings monitoring blind spots for the central bank to perceive the flow of funds in the economy and society, which greatly reduces the effect feedback of monetary policy, and eventually causes the central bank's monetary policy to deviate from the expected purpose.

The digital renminbi, which replaces cash, can obviously help the central bank solve various problems in the above-mentioned existing monetary system:

1. Digital renminbi can greatly reduce the cost of issuance and exchange

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M0 Growth 2016-2021

After the digital renminbi system is established at one time, it can greatly reduce the high cost of the current cash issuance and exchange process. In theory, there will only be the operation and maintenance costs of the corresponding digital renminbi system in the future, and the margin will decrease year by year until it approaches zero. .

At the same time, compared with cash, digital renminbi can also improve the transparency and circulation efficiency in the circulation process, thereby effectively improving the efficiency of payment and settlement and the central bank's monitoring of capital flows.

Some friends may say that if it is to reduce the cost of issuing and exchanging banknotes and improve the ability to monitor capital flows,Then the existing third-party payment such as WeChat payment and Alipay payment can be realized, so why do we need to "do more"?

The key is that third-party payment relies on traditional bank accounts, which cannot meet the two key needs of the public for anonymous exchange and offline exchange.Therefore, it is impossible to complete the historical mission of replacing cash:

For example, when the public goes to pharmacies to buy family planning products and other similar anonymous payment needs to achieve privacy protection, the hundred-yuan bill is obviously better than third-party payment;

For example, in extreme situations such as flight mode, remote mountainous areas, overseas exchange and other payment difficulties without a network or payment system, and financial infrastructure paralysis caused by an earthquake, the hundred-yuan bill is also significantly better than third-party payment.

2. Digital RMB can be exchanged anonymously and offline

The digital renminbi solves the above two problems in a targeted manner, so that it can completely replace the advantages of cash.

First of all, the digital renminbi is loosely coupled in the account mode, which means that users can choose to bind the digital renminbi wallet with their already opened bank accounts,You can also choose to use only the digital RMB wallet and use it independently from the traditional bank account system.Just like any of our current wallet addresses, it can be generated and used without bank accounts.

also,

also,The digital renminbi also supports the "dual offline payment" of the payer and the payee,In this way, the advantages of offline full coverage of cash payment can be realized, and the dependence on the network can be eliminated, and the payment demand can still be met in the face of some specific usage scenarios.

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03 The digital renminbi helps the central bank deal with the challenges of stablecoins like Libra

After years of development, my country's third-party payment is currently in a leading position in the world in terms of market size and usage. User education and business infrastructure have been basically improved. Electronic and digital payments have become the main trend.

While traditional cash payments are gradually declining amid the explosive growth of third-party payments, private digital currencies are also constantly improving differentiated digital payment needs.The two have weakened the influence of the central bank's monetary policy to a certain extent, and at the same time, they have brought great challenges to the realization of the central bank's regulatory capabilities in payment, settlement and settlement.

Therefore, the launch of the digital renminbi is at the right time. As a national credit endorsement and a digital form of legal tender issued by the central bank, it further improves the efficiency of the payment system through the digitization of legal tender on the basis of third-party payment to complete market education. Meet people's needs for payment security, efficiency, privacy and convenience, and improve the convenience level of RMB payment.

More importantly, it can also reduce people's dependence on third-party mobile payment platforms such as Alipay and WeChat, and can effectively respond to the technological innovation impact of Libra and other global stablecoins, enhance the robustness of my country's existing payment system, and protect the currency sovereignty and legal currency status of the RMB.

Therefore, although the core positioning of the digital renminbi is to digitally "upgrade and strengthen" my country's existing renminbi system, in the face of the stable currency represented by Libra, especially the digital currency and currency sovereignty game they opened When it comes to a new dimension, it is obviously more competitive than the existing currency system.

The author has also applied for the digital renminbi red envelope activity in Shanghai at the first time, friends in Shanghai can also try it, and look forward to our digital renminbi officially meeting you as soon as possible.