Partnered With:

What is the relationship between digital renminbi and stable currency?

Read this article in 10 Minutes

There are differences between digital renminbi and stable currency, but there are also some similarities. Today I will explore the relationship between them for everyone.

Original Author: Xiao Zhang Talks about Blockchain

Today at 20:00, the Suzhou digital RMB pilot program will be announced soon. At that time, there will be 100,000 Suzhou winners Citizens experience the use of the 200 yuan digital RMB red envelope.

Compared with the one in Shenzhen, what is the difference between the Suzhou pilot this time?

1. Added online payment;

2. Offline wallet and offline payment application;

p>3. Postal Savings Bank and Bank of Communications have been added;

4. Some merchants can use the "touch" function.

What is the relationship between digital renminbi and stable currency?

Although large-scale trials have been carried out in two pilot cities, the large Most people don’t feel much about the change of digital renminbi. Today I want to talk about the topic of digital renminbi and the great significance of digital renminbi in China.

First of all, let’s take a look at the introduction of digital renminbi:

The English abbreviation of digital renminbi is "DC/EP", which is a legal currency in digital form issued by the People's Bank of China. The digital renminbi is mainly positioned as cash in circulation (M0), which is operated by designated operating agencies and exchanged to the public. It is based on a broad account system and supports the loosely coupled function of bank accounts. It is equivalent to banknotes and coins, and has value characteristics and legal value. Compensation, support controllable anonymity.

What is the relationship between digital renminbi and stable currency?

Let's take a look at the development of digital renminbi:

In 2014, a special legal digital currency research group was established to discuss the required regulatory framework or national digital currency.

In 2015, two rounds of revisions were completed for the central bank’s prototype plan for issuing digital currency.

In 2016, the prototype research and development of digital bill trading platform based on blockchain and digital currency was launched.

In 2017, the Central Bank Digital Currency Research Institute was officially listed.

In 2018, the Central Bank Digital Currency Research Institute established "Shenzhen Financial Technology Co., Ltd.".

In 2019, Mu Changchun, deputy director of the Payment and Settlement Department of the People's Bank of China, stated at the third China Finance Forty Forum that the central bank's digital currency is "ready to come out."

In 2020, the digital renminbi will start a "4+1" closed test. In October, digital renminbi was distributed to 50,000 pre-registered people in the form of red envelopes in Luohu, Shenzhen.

In November 2020, according to the news, in addition to Xiongan, Suzhou, Chengdu, Shenzhen and the Winter Olympics, the digital renminbi pilot will also add Shanghai, Changsha, Hainan, Qingdao, Dalian and Xi'an Experiment in six places.

In December 2020, the digital renminbi will be distributed to 100,000 people who have made an appointment in the form of red envelopes in Suzhou. The Hong Kong Monetary Authority is working with the Central Bank's Digital Currency Research Institute to study the technical testing of using digital renminbi for cross-border payments and make corresponding technical preparations.

What is the relationship between digital renminbi and stable currency?

You can also see other related content, here I I will not continue to explain these for you, but the purpose of writing this article is to show you the role of digital renminbi from a personal perspective.

First of all, we can see from the concept that the digital renminbi just borrows from the concept of blockchain and focuses on M0 payment, not what we use Digital currency, in terms of blockchain concept, it may be more stable currency, because its value is only affected by the international exchange rate; in terms of use, it is more realistic and can be used in people's daily life, shopping , payment and other functions make it more powerful for people's livelihood.

If you compare it with the existing mainstream stablecoin functions, it can be divided into the following differences (stablecoins are not limited to USDT):

< p>

1. The digital renminbi is under the control of the state, and the stable currency is under the control of the project party;

2. The exchange rate between the digital renminbi and the existing legal currency is 1:1, which is stable The currency sometimes fluctuates slightly;

3. The digital renminbi can be used directly for shopping, and the stable currency is currently only used for the exchange between digital currencies;

4. The digital renminbi supports offline payment , Stablecoins only support offline payments with some hardware wallets;

5. Digital RMB does not charge transaction fees, and stablecoins are withdrawn There will be a handling fee.

What is the relationship between digital renminbi and stable currency?

Based on this, there are some similarities between them, such as solving Convenience of cross-border payment and handling fee issues, constant value solutions, combination of off-chain digital assets, etc.

I think the launch of the digital renminbi is likely to be a shovel to promote China's international status. Now CBDCs such as digital dollars and digital euros are in preparation. Foreign countries are also solving the epidemic problem, while the second round of large-scale trials is already underway in China. I believe it will shock the world when it is officially launched.

But I can feel more that there may be a combination of digital renminbi and stable currency, because digital renminbi promotes the formulation of blockchain industry regulatory bills , Stablecoins enable the public to have a better understanding of the digital renminbi, and they are mutually reinforcing.

Maybe there will be a fork in the combination of stable currency and DCEP, which will promote the overall application of the blockchain and form digital assets that truly spread to everyone.

In the future, the digital renminbi will be used in all scenarios such as cross-border payment and daily use, which will make me look forward to it even more.