Birth from civilization, human beings have been exploring more efficient and convenient payment methods. China’s currency innovation is actually going in the forefront of the world.
Whether it is the earliest coins, cloth and today’s people familiar with people, or the earliest banknotes in the world – the birth of the Son, is born in China. In the modern economy, currency has become a “central bank liability” in national credit books. Its key is not in its form, but the national credit behind it.
With the development of the digital economy, more and more people have begun to think: Since the currency becomes a signal that can be transmitted in different accounts, the terminal, it can establish a monetary system that can be realized like a message, that is, electronic cash Woolen cloth?
This is the nature of the digital RMB – the currency finally evolved from the shell, silver, copper coins, paper and other forms to electronic cash.
Powerful digital renminbi
What benefits can be brought to digital RMB as electronic cash? It has to start from the characteristics of the digital RMB.
In the long run, there is a national macro strategy behind the digital renminbi, for example, it is convenient to cross-border flow of currency, promote the internationalization of the RMB, but in the current, the number of digital RMB is the domestic retail payment. Under this positioning, the most prone to intuitive value is related to the three major characteristics of the digital RMB – controlled anonymous, payment, settlement, programmable.
The most familiar cash payment, because there is no need to trade both parties, “pay one hand one hand,”, the required information, so that cash payment has the strongest anonymity. Once the bank card payment, third-party payment, etc., inevitably leave information, name, etc., this is not anonymous.
Digital RMB utilizes encryption technology to achieve anonymity. But for anti-money laundering, the right tracking rights must be retained. The combination of the two produces “controllable anonymous”: Digital RMB can pay by “soft wallet” (digital wallet), and digital wallet score is divided into 4 + 1 class, which requires different identity information and payment limits. The higher the payment limit, the more identity information needed. For example, a class of wallets, no payment limit, but open conditions include mobile phone numbers, ID cards, bank accounts and live signs.
This system of multiple digital wallets allows the digital RMB to track suspicious transactions, and protect the anonymity of small transactions.
This system design is also applied at the Winter Olympics. For example, the entry of the participating team may not be willing to open a bank account, you can open a fifth category fifth wallet designed for foreigners, no real name, you can use the mobile phone number or mailbox.
Programmability means that digital renminbi can load intelligent contracts that do not affect the currency function, that is, set the conditional payment function. For example, for rents are difficult to regulate and rented a roll-back, Shenzhen Agricultural Bank Unite China provides a smart contract project, and the tenant has completed the contract and pays deposits and rents, the funds enters the landlord account, and generate intelligent contracts. The lease expires to trigger payment conditions, and the deposit will automatically refund the tenant.
For another example, in the past, for the help and public welfare, donors often can’t control the use and flow of funds, so people tend to question the true flow of funds. However, with the intelligent contract function of the digital RMB, it can achieve a particular population, a specific industry, and a specific rule.
The function of “paying the settlement” makes the user directly trader, without the need for card issuing institutions, subscribers, clearing agencies, etc., the payment process is greatly shortened, which is improved by the transaction speed, and also achieves the demarcation of the business. This is also one of the basic means of digital RMB to achieve pragmatic finance.
It is because there is this three major features and its broad application scenarios, and the digital renminbi has gradually become new foundation in the digital age. At the 20021 Financial Statistics Press Conference held on January 18, the Director of the Central Bank Financial Market Division reveals the latest progress in the digital renminbi pilot. In contrast, it was found that the number of digital RMB personal wallets was significantly accelerated. As of the end of June last year, only more than 2087 million were only 20.87 million, and as of October 22 last year, he raised to 140 million. As of the end of 2021, the number of pilot scenarios of digital renminbi, cumulative opening of personal wallets and transaction amounts were significantly improved.
At 2022, the official launch of the digital RMB (pilot version) App also brought the use boom. According to many mainstream mobile phone APP mall data, as of January 17, the digital RMB (pilot version) APP download has exceeded 20 million, and the download quantity in the first few days of the line has been doubled. It can be said that official APP is officially launched, significantly reduces the threshold for users to obtain digital RMB, and lay the foundation for the comprehensive promotion of digital renminbi, which helps to continue to expand, the users covered and the number of wallets will usher in new A round of growth is another milestone on the road of digital RMB.
Nature of digital renminbi
As the digital renminbi began a comprehensive pilot, there have been a lot of misunderstandings, such as the number of digital renminbi and encrypted currencies, and third parties.
Digital RMB named Digital Currency / Electronic Payment (DC / EP), named digital currency and electronic payment.
The so-called digital currency is the renminbi of the representation. In fact, in order to realize the digitization of the renminbi, the problems faced, including anonymity, dual payment, tamper-like modification. To solve these problems, the digital RMB introduces leading edge technology such as blind signature, asymmetric encryption technology. These technologies have been combined together, and there is a very hot zone chain technology and bitcoin in these years. This is the essence of block chain technology – a technology package, and the bag is actually a mature cryptography technology.
Although the underlying technology has overlap, it is different from the virtual currency and the virtual currency in some games and communities, and the digital RMB is the national credit. Of course, objectively must also be recognized, it is the father of the block chain, the Congxiao combined with these technologies, established a detrimentary electronic accounting system – block chain, which has greatly accelerated technology application and landing. I eventually digitious digitalization.
The second component defined by the digital renminbi is electronic payment. As the digital RMB, the electronic payment refers to the electronic payment referred to by third parties such as WeChat, Alipay. The nature of digital renminbi is a currency and is the money in the wallet; and the third party pays in essence is a wallet. Digital renminbi can be traded through a third-party payment platform, just like a number of platforms have added digital renminbi options.
In addition, the current positioning of the digital RMB is domestic retail payment, and its positioning in the “Flower of Money” is different from cash, different from deposits, more different from encrypted currency and virtual currency, and is the digitalized in the central bank. Widely available, point-to-point technology, used in retail payment scenarios, not invalidated currencies.
Currency flower model, map source: international liquidation bank BIS
An agreement is that the Bank of Financial Market Director Zou Lao said in recent days. Next, the People’s Bank will continue to safely promote the digital RMB R & D pilot in accordance with the national “fourteenth” planning, further deepen in retail trading, life payment, government affairs The service and other scene pilots use digital renminbi, put the digital R & D research to the service entity economy and the people’s life, let more companies, individuals can feel the value of digital RMB, and fully stimulate the enthusiasm of the industry.
Full landing of digital renminbi
Because Digital RMB positioning domestic retail payment, let the digital renminbi are accepted by the market, and the most needed is to choose the right scene.
Good in the mobile Internet era, has established a retail payment system that covers the full scene, which provides a large number of application scenarios for the promotion of digital RMB. A clear ecology is gradually constructing.
For example, Tencent and Ali have been directly involved in the research and development test of digital RMB directly as two major Internet giants in China. In the digital RMB ecology, it is more focused on the underlying technology and the support platform.
Jingdong’s role is more diverse. While participating in the technical platform, it also generates at the same time in the C-terminal and B. In the C-terminal, Jingdong introduces the digital RMB wallet into Jingdong App; in B-terminal, Jingdong pilots with digital RMB as the company employee, using digital RMB intelligent contracts and real-time settlement technology and features to promote digital RMB in business rooms Payment application.
The central bank’s “Digital RMB R & D Trial Foot to the Service Economics and People’s Life”, which determines the most suitable to start from the cold start phase, cultivate user digital renminbi usage habits, undoubtedly the daily consumption scenario of small high-frequency And have the most daily consumption scenarios of life, it is undoubtedly a US group.
Relying on 670 million years of trading users, 8.3 million active merchants, users have average annual average transaction pen, and the US group covers the full scene of the user’s “eat and drink tour” is equipped with retail and line to eat and drink in the line. Chinese consumers’ daily premiere platforms. In many scenarios, “takeaway” is currently the largest, frequency and high digital RMB application scenario, which is most beneficial to cultivate the use habits of digital RMB. The US Mission’s third quarter, the third quarter of the US Mission shows that the number of food and beverages has reached 43.6 million transactions.
As the US group of the draft soldiers, in the digital renminbi application pilot in 2021, it has three progressive pilots.
The first order: With a shared bicycle out behavior scene, open the first digital RMB carbon neutralization. Specifically, users who participate in the event can receive the digital RMB red envelope to ride a bicycle, and obtain digital RMB low-carbon red envelopes.
The second order: eat a full low carbon activity. Extend green low carbon to “eat food”. As long as it is a green low-carbon consumption behavior in the US group platform, a certain number of renminbi red envelopes can be obtained.
The third order: takeaway, buy vegetable scenes to access the digital RMB. In the first, second steps, users obtain digital RMB red envelopes by participating in activities, and then use digital RMB red envelopes for consumption. At this stage, the digital RMB officially became a parallel payment option, and the user can obtain digital renminbi by redeeming, mutual transit, etc., selling vegetables and other daily high-frequency life scenes. Use digital RMB payment.
Through this three-order, digital RMB application scenarios, the use of scale is greatly extended and improved. Data show that as of January 2022, the US Mission Digital RMB carbon and pilot activities have attracted more than 8.1 million users to sign up, including more than 2 million users download and open digital RMB individuals during the event. wallet. But the US group does not stop this third order. In the Digital RMB Accelerated, Digital Renminbi (Pilot Edition) APP brought continuous boom, US groups are providing a richer and comprehensive application scenario for digital RMB. In the whole scene of buying, buying vegetables, bicycles, movies, and preferred group purchases, to the store, taxi, sports fitness, home, etc. Digital RMB full coverage. Digital RMB in the usual evolutionary speed of users’ daily, worth looking forward to.
In the full-scene exploration phase, the US group uses the largest life service platform + the most complete daily consumer scenario + the largest maximum frequency digital RMB pilot scene, the number of small micro commercial people behind the digital RMB, users and daily consumption scenes. Tight link, excitation the value of digital RMB service entity and people’s lives, become an important link between digital RMB and physical economy, boost digital RMB development important Internet accelerator, and consumers use digital RMB first entrance.
A history of human development is also a history of monetary form.
After the rear of the currency form, the kernel is the giant change of the entity economy. From the primitive society to modern society, the currency is developed from precious metals such as credit currencies, and the economic form has also entered the commodity economy from the farming economy.
The birth of digital renminbi, on the surface is the inevitable result of technological progress, but it is essentially a reflection and result of China’s digital economy.
As the digital RMB enters the “Full Scene Exploration” period, the digital RMB will also be more highlighting the characteristics of the service entity economy and the lives of the people, and China’s digital economy will inevitably enter a new period. In this process, the Internet companies use the promoters and beneficiaries of the digital economy, and will also become the promoters of the digital RMB and become the connector between the digital RMB and the entity economy and the people’s daily lives.
The characteristics of digital RMB based on domestic retail payments have also determined the US groups with broad application scenarios, link massive C-terminal users and large number of small and medium-sized micro commercial households, inevitably become an important thrust in digital renminbi development.