It has nothing to do with IC0, so don’t panic too much about the Central Bank’s “Draft for Comment”

On October 23, the People's Bank of China issued a public consultation notice on the "Law of the People's Republic of China on the People's Bank of China (Revised Draft for Comment)" to improve the regulations on RMB management. The "Draft for Comments" stipulates that RMB includes physical and digital forms, providing a legal basis for the issuance of digital currency; preventing virtual currency risks, and clarifying that any unit or individual is prohibited from producing and selling digital tokens to replace RMB in circulation in the market. (Articles 19 and 22)

This news, because "virtual currency", "issued The emergence of words such as "coin" has triggered many interpretations. The widely spread view is that the regulators have re-emphasized the ban on IC0, and even 94 upgrades.

A lot of views are being spread, and the words "to replace RMB in circulation in the market" are ignored, which is too much Emphasize the previous content in the "Draft for Comments", and the neglected part is actually the key to interpretation. Rhythm BlockBeats interviewed Harry Zhou, Chief Compliance Officer of Koi OTC. He believes that we should not think too much about the central bank’s actions from the currency circle, but think from the perspective of long-term history and the central bank. To interpret it in one sentence, the two contents in the "Draft for Comments" actually emphasize the sole circulation status of RMB in China.

The following is Rhythm BlockBeats’ arrangement of Harry’s views:

Before interpreting this news, we must first understand the "legal status of RMB".

There have been many currencies that have threatened the legal status of the RMB in history, such as US dollars, Hong Kong dollars, and even counterfeit currencies. Before the return of Hong Kong, some places in Shenzhen could be traded in Hong Kong dollars in the market. Because of these phenomena, the state stipulated the legal status of RMB in three legally effective documents, namely the Constitution of the People's Republic of China, the Banking Law of the People's Republic of China, and the Regulations of the People's Republic of China on the Administration of Renminbi.

These three documents stipulate the legal status of RMB, which is the only legal currency in China and can be used to pay public and personal For all debts, that is, in China, RMB has the only circulation status.

The definition of the concept of legal currency status abroad is different from that in China. Taking the United States as an example, the US dollar is the legal tender of the United States. Indicates that a transaction using U.S. dollars cannot be refused in the United States. For example, A uses US dollars to buy water in a US store, but the owner B says that he does not accept US dollars. This behavior is a violation of US law. However, if both parties A and B recognize the yen, and the two parties agree to pay the transaction in yen, this behavior is allowed in the United States. Because the legal status of the US dollar cannot be rejected, there is no exclusivity.

The legal status of RMB in China is "unique" and exclusive.

Based on this knowledge point, and then looking at the Central Bank’s "Draft for Comments", you will find that because of the emergence of DCEP, this files need to be supplemented.

First of all, Article 19, the "Draft for Comments" stipulates that "RMB includes both physical and digital forms. Digital currency provides a legal basis". Because of the emergence of DCEP, another form of RMB has emerged, which needs to be supplemented in the law.

And Article 22, "To prevent the risks of virtual currency, it is clear that any unit or individual is prohibited from producing and selling digital tokens Currency to replace RMB in circulation in the market.” This content is to continue to emphasize the legal status of RMB, that is, the only circulation status, emphasizing that all transactions in the country, as long as there is a currency circulation scene, can only be priced and settled using RMB in both physical and digital forms.

From the perspective of the currency circle, this news actually affects USDT, which is currently showing signs of leaving the circle, and does not There is no widely used "RMB stable currency". For example, it is illegal to use USDT to pay when A buys water from shopkeeper B in China. This is the content expressed in the "Draft for Comments", emphasizing the legal status of RMB. However, ICO and so on have nothing to do with payment circulation, and this document does not involve other fields.

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