Digital renminbi can carry out cross-border payment and international cooperation pilot

Buying the ice pier, “touching a touch” payment … With the Beijing Winter Olympics, the digital RMB completed the world’s first show and became the focus of all parties. Russian experts admire, digital RMB showcase China’s innovation achievements in the financial sector, and Beijing Winter Olympics will also load history by digital RMB.

Digital RMB is a beautiful “exception” in Winter Olympics. Originally, due to the provisions of Winter Olympics, only Visa credit cards and cash payments were supported in Winter Olympics. However, as an innovative existence of sovereign currency, the digital RMB has the same kind of failure with cash, so it has not been restricted. This not only has a convenience of domestic users, but also provides more payment options to foreign friends, but also achieving non-contact payments, fully meets the epidemic prevention requirements of the Winter Olympics.

Today, digital currency is becoming a big trend of global financial development. Up to now, more than 110 countries and regions have carried out relevant central bank digital currency related efforts to varying degrees. The Fed has been studying the potential benefits and risks of issuing central bank digital currencies in recent years. In July 201, the European Central Bank announced the launch of digital euro projects and expressed their hopes to make digital euros a reality within 5 years. The Russian central bank plans to test digital rubles in 2022, and determine the road map of the country’s digital currency next development. The Nigerian government has begun to study the issuance of digital currency in 2017. In 2021, “E Naira” launched Nigeria became the first African country that officially enabled digital currency, one of the countries and regions that were the first to issue digital currency in the world.

Compared with traditional payments, the benefits of the central bank implement digital currency are obvious. First, it is possible to reduce cost and improve efficiency. Digital currency has inherited the advantages of cash point payment, instant settlement, convenient and fast, which makes up for the disadvantages of cash on digital circulation and multi-channel payment, greatly reduced the cost of issuance and transactions, and tracking transactions, reducing illegal Activities such as tax avoidance, money laundering, etc.

Second, enhance the level of ordinary skill. Digital currency does not rely on physical outlets and manual services, which can get a larger service capacity with less manual investment. Take Nigeria as an example, according to the statistics of World Bank, about 38 million people have no bank accounts, accounting for 36% of the adult population. If “e Nara” is promoted to all mobile phone users, it will greatly enhance the country. Financial inclusive, and promotes social transfer payment more directly and effectively, thereby enhancing the well-being of the people.

Again, improve the utility of monetary policy. On the one hand, the implementation of digital currency helps to expand monetary policy space. On the other hand, the implementation of digital currency is conducive to improving the capacity of central bank to monitor currency flow and organizing market, and reducing the loss of intermediate links in supporting small and micro enterprises, further improving the effectiveness of monetary policy regulation.

Digital monetary advantages are huge, but many economies remain cautious about this. The main concerns are reflected in the difficulty of mature and market supervision. If there is no technical exploration and reserves, some countries are eager to promote the central bank’s digital currency. In the head, “change the soup without changing the medicine”, which has an impact on the domestic financial system. The Fed believes that the design of central bank digital currency should consider significant factors such as monetary policy, financial stability, consumer protection, laws and privacy, and “stabilization currency” related to US dollars and other legal currency values ??can improve payment efficiency and reduce transaction costs, but also Posing potential risks on users and financial systems should pay attention to appropriate supervision.

As the digital economy welcomes the huge tone, countries have begun to accelerate research and development of digital currencies to deal with future international economic competition. For China, future digital renminbi development can vigorously play the core competitive advantage of the national endorsement, central bank issuance, explore easy to use, sustainable, widely connected payment channels, promote larger-scale landing, and empower the physical economy, high quality development, At the same time, cross-border payment and international cooperation pilots are carried out, and they are actively seeking partners, taking measures to accelerate the pace of RMB internationalization.