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Another 10 million yuan of DCEP will be sent to count down the "highlight moments" of the digital renminbi this year

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Hundreds of battles are underway, and the digital renminbi is accelerating.

Original source: computing power think tank

Li Shuo

Starting at 00:00 on February 7, the Beijing digital renminbi pilot activity will start, and a total of 10 million digital renminbi red envelopes will be issued through appointment lottery. In the past year, the DC|EP of the People's Bank of China has begun to enter the lives of ordinary citizens and is known by more people. In the stronger worldwide competition guided by the new generation of information technology, central bank digital currencies (CBDC) of various countries are vying for success. China is clearly in the leading position, which can be seen from the review of the following year. Saying goodbye to the old and ushering in the new, the editorial department of the computing power think tank interprets and predicts the policy logic and development of China's DC|EP in the future, hoping to help every "you and me" who are immersed in it with a "sense of the future" remind them of opportunities.

The digital renminbi is accelerating

On January 16, the Society for Worldwide Interbank Financial Telecommunication ( SWIFT) teamed up with the Clearing Center of the People's Bank of China, Cross-border Interbank Payment and Clearing Co., Ltd., the Central Bank Digital Currency Research Institute and China Payment and Clearing Association to establish Financial Gateway Information Service Co., Ltd. Mu Changchun, director of the Central Bank Digital Currency Research Institute, is the director one.

SWIFT is a global financial industry cooperation organization and the world's leading secure financial messaging service organization. The joint establishment of institutions is crucial to the promotion of digital renminbi.

In the past year, the global central bank digital currency has developed rapidly. "2020 is the year of the rise of central bank digital currency." The Bank for International Settlements (BIS) pointed out in a report released in 2020.

After Facebook released the white paper of its digital currency Libra in 2019, central banks of various countries have accelerated the pace of digital currency exploration. According to the BIS survey, 80% of the central banks in the world are currently exploring and developing CBDC, 40% of the central banks are doing proof of concept (PoC), and 10% of the central banks are doing pilots.”

The People's Bank of China is undoubtedly the fastest growing

"The progress of the People's Bank of China in the layout of digital currency is 'quick' for all to see, and behind this is The People's Bank of China has a clear policy goal and a clear top-level design. Only by recognizing this point can we truly see the ambitious pursuit of the digital renminbi (DC/EP). "Some senior people in the industry sighed.

As the leader of global economic growth, China has shown strong strength in the post-epidemic era, which is undoubtedly It is a solid foundation for DC/EP. With the continuous advancement of the pilot and the continuous improvement of technology, the ecology around DC/EP will be further improved.

At that time, not only will the changes It is not only the Chinese currency system, nor the global digital currency, but a new era subverted by technology.

The world's leading is not only speed

At 18:00 on October 12, 2020, Li Ming (pseudonym) successfully received the text message and download link sent by the SMS platform of the Shenzhen government, downloaded the "Digital RMB App" according to the page guidelines, and made the appointment. The "personal digital wallet" of the bank.

Afterwards, Li Ming completed the registration of the "personal digital wallet" according to the SMS prompt. box, and received a 200 yuan digital renminbi red envelope.

This is the "amazing moment" of digital renminbi in 2020.

The first digital renminbi pilot project launched in Shenzhen has delivered a beautiful report card: from the announcement of the digital renminbi pilot activity on October 8 to the official distribution of red envelopes on October 12, from 1.9138 million people applied for it, and 50,000 people won the lottery. The digital renminbi pilot project launched in Shenzhen in October once became the focus of national attention.

Two months later, the 20 million yuan digital renminbi red envelope Suzhou pilot officially opened: "Double 12 Suzhou Shopping Festival" will distribute 20 million yuan to eligible Suzhou citizens Yuan digital renminbi consumption red envelopes, each with an amount of 200 yuan, and a total of 100,000 red envelopes.

Continuous large-scale pilot projects mean the rapid advancement of digital renminbi. When you look at global central banks, this is unique.

At the policy level, the People's Bank of China is also making rapid progress. On October 23, 2020, the central bank publicly solicited opinions from the public on the "Law of the People's Republic of China on the People's Bank of China (Revised Draft for Comments)" (hereinafter referred to as the "Draft for Comments"). The "Draft for Comments" includes the digital form of RMB for the first time, stipulating that RMB includes both physical and digital forms, providing a legal basis for the issuance of digital currency.

When it comes to the specific ecological construction, the People's Bank of China even resorted to combined punches.

"The central bank has developed and operated many payment and settlement systems and payment systems, including large and small amounts, and UnionPay. For financial institutions. However, the issuance of the central bank’s digital currency must directly face the public.” Mu Changchun previously said in public, “From this perspective, the two-tier operation design can avoid excessive concentration of risks in a single institution.”

The two-tier operation system is that the central bank is the upper layer and the commercial bank is the second layer. This dual delivery system can smoothly increase the value of digital currency Acceptance.

"In the two-tier system of DC/EP, the People's Bank of China is on the first floor, and the second floor has commercial banks, telecom operators, and Internet payment Platforms, they can cooperate or unite, depending on their understanding of payment products and technical frameworks.” Zhou Xiaochuan, the former governor of the central bank, agrees with it.

In the second layer, the roles of commercial banks and third-party payment institutions are also different. Mu Changchun once revealed that the exchange and circulation of digital renminbi are two different concepts. Commercial banks undertake the function of exchanging digital renminbi to the public, and circulation services can be undertaken by third-party payment institutions and other small and medium-sized banks. Specifically, commercial banks belonging to designated operating institutions are responsible for opening different types of digital RMB wallets for exchange services according to the strength of customer information identification. Management, including payment product design and innovation, scene expansion, market promotion, system development, business processing, operation and maintenance, etc.

"Digital RMB should adhere to centralized management to maintain legal currency status and currency issuance rights. Its centralized management can realize payment and settlement, which can improve the security of merchant funds The turnover rate and the efficiency of the payment system break down retail payment barriers and market segmentation, and improve monetary policy transmission. It is conducive to resisting the erosion of encrypted assets and global stablecoins, preventing the right to issue currency from being sidelined, and maintaining financial stability.” Mu Changchun said.

China, which has achieved a leading position in digital currency research and development, has repeatedly mentioned the application of digital currency in the field of cross-border payment, which makes people wonder about the long-silent RMB international Transformation produces associations.

On November 2, 2020, Huo Xuewen, director of the Beijing Municipal Financial Supervision Bureau, said that the Beijing Municipal Financial Supervision Bureau will actively promote cross-border digital currency in the airport area Payment and other financial technology application scenarios. The Shanghai headquarters of the central bank also revisited the expansion of RMB cross-border financial services on July 15 this year, insisting on "local currency priority".

Recently, SWIFT, the Central Bank Clearing Center, and the Digital Currency Research Institute have established new companies, which has aroused the imagination of the outside world.

Some people in the industry said that a series of actions by the People’s Bank of China in 2020 show that the goal of digital renminbi is not to compete with sovereign currencies, but to start from the perspective of actual use , to provide residents with a more convenient life.

But it is undeniable that digital currency has ushered in international opportunities. Whether it is the U.S. dollar or the RMB, with the development of the digital economy, there will be less and less cash. Promoting the research and issuance of legal digital currency is an important strategy for the central bank to establish currency sovereignty in the mobile payment era. At the same time, all countries value the promotion of digital currency. The possible far-reaching impact on various aspects such as the international payment system.

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According to a series of measures taken by the People's Bank of China in 2020, we can find the framework and logic behind them, and use this as a starting point for the advancement of the digital renminbi in the coming year. The direction is also clearer.

1. Pay more attention to the scene, not the scale

Although the central bank is in Shenzhen, Suzhou, etc. The pilot project of digital renminbi has been carried out in a timely manner, but it should be noted that the pilot test is more about usage scenarios, rather than blindly pursuing scale.

Taking Suzhou as an example, it selected merchants and designated online e-commerce merchants that have completed the upgrade and transformation of digital RMB collection equipment, and nearly 10,000 merchants participated in the event Home, covering shopping malls and supermarkets, daily retail, catering consumption, life services and other fields.

Authoritative sources said that the combination of the digital renminbi pilot and the "Double 12 Suzhou Shopping Festival" shows that the central bank is accelerating the promotion of digital renminbi to expand application scenarios, thereby more Quickly promote digital renminbi to enter thousands of households.

The strategic cooperation agreement signed by Lakala, UnionPay Business and the Digital Currency Research Institute of the Central Bank shows that it will combine the existing business scenarios of UnionPay Business, based on the characteristics of digital RMB and the wallet ecosystem, jointly research and expand the product functions and application scope of the digital renminbi, and promote the construction of the digital renminbi ecosystem.

Zhu Min, dean of the National Institute of Financial Research of Tsinghua University and former vice president of the IMF, believes that digital currencies need to be tested more and expand the scope rather than increase the scale. Make more and more scenarios and occasions suitable for various purposes, and test the sustainability, durability, accuracy and efficiency of the system.

He said that we are only trying the second step now, carefully testing the system. Because for financial and public services, security and stability are the most important. But he believes that the potential of the digital renminbi in the real economy is huge.

2. The Winter Olympics or the first military parade

Opening at the Beijing Winter Olympics On the first anniversary of the countdown, in order to implement the Science and Technology Winter Olympics Action Plan and strengthen the construction of the Winter Olympics payment service environment, Beijing launched the "Digital Wangfujing Ice and Snow Shopping Festival" digital RMB pilot activity around the entire scene of Winter Olympics consumption.

It is understood that this event is sponsored by the People's Government of Dongcheng District, Beijing. Red envelopes will be issued to those who win the lottery through appointment registration and lottery 50,000 digital RMB red envelopes, each worth 200 yuan. Those who win the lottery can spend without threshold at the designated merchants in Wangfujing and the "Digital Wangfujing Ice and Snow Shopping Festival" activity area of JD.com. The appointment registration channel will officially open from February 7, 2021, and the consumption activities will be from February 10 (the 29th of the twelfth lunar month) to February 17 (the sixth day of the first month).

In the view of Yi Bigui, a securities researcher at the Federal Reserve Bank, the Winter Olympics will gather a large number of domestic and foreign athletes and spectators, and the demand for payment services will be quite large. The construction of the payment service environment can deeply explore information such as the acceptance, payment habits, and usage needs of different types of consumers for digital renminbi, and the efficiency of the pilot project has been greatly improved; in addition, the advantages of the Shunyi Airport location and the physical industry foundation are fully utilized to promote cross-border digital currency For the application of financial technology scenarios such as payment, overall planning and resource allocation will also be more targeted.

Zhou Maohua, an analyst at China Everbright Bank’s Financial Market Department, also believes that the application of digital renminbi in scenarios such as cross-border payments and the Winter Olympics will help speed up the development of digital renminbi. The global promotion of such an important international event as the Winter Olympics itself has a strong global "advertising" effect. At the same time, the vitality of the digital renminbi is to be used in different scenarios to serve the development of the Chinese economy and the global economy.

3. More optimistic about the opportunities in the Greater Bay Area Optimistic about the development prospects of the Greater Bay Area.

On August 14, 2020, the Ministry of Commerce issued the "Overall Plan for Comprehensively Deepening the Pilot Program of Innovation and Development of Trade in Services" (hereinafter referred to as the "Plan"). In terms of comprehensively exploring innovative development models, the "Plan" proposes to carry out digital renminbi pilots in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and qualified pilot areas in the central and western regions.

Guangdong is one of the most active regions in the country for mobile payment transactions. According to data from the People's Bank of China, in the first half of 2020, Guangdong Province (not Including Shenzhen) there were 5.805 billion mobile payment transactions, with an amount of 1.768 billion yuan, a year-on-year increase of 57.50% and 19.91% respectively.

"Guangdong has financial technology, underlying technology, hardware development and other elements that are closely related to the development of digital currency. There are some exclusive companies on the market, which will become the advantages and potential of digital currency application.” Ren Zhihong, director of the Finance Institute of Guangdong Academy of Social Sciences, said.

A PBOC bank representative in Shenzhen said that financial institutions and companies with large cross-border transactions in the region will be the first choice for the pilot platform. He added: "Considering the large-scale cross-border adoption of DCEP in the future, Guangdong may be one of the most important markets."

Another industry insider said, The Greater Bay Area is one of the most dynamic economic circles, with profound accumulation in technology, finance and other fields, and a strong atmosphere of innovation. It is not ruled out that exchanges based on digital renminbi will be launched in the Greater Bay Area in the future.

4. It is a competition and cooperation with WeChat and Alipay, not a competition

"Both fundamentally It is not something in the same dimension. WeChat and Alipay are 'wallets', while digital renminbi is the 'money' contained in it." Mu Changchun explained the relationship and difference between digital renminbi, WeChat and Alipay.

He believes that WeChat and Alipay have become systemically important financial infrastructures in retail payment scenarios. "Wallet", it is a "highway", and the content used for payment is commercial bank deposit currency in the era of electronic payment. In the era of digital renminbi, the option of digital renminbi has been added to the wallet. Therefore, in the future, ordinary people can choose not only commercial bank deposit currency but also digital renminbi when using WeChat and Alipay to pay.

In addition, he said that the respective commercial banks of Tencent and Ant are also operating institutions, so they do not compete with the digital renminbi.

He believes that in the foreseeable future, digital renminbi and banknotes will coexist for a long time. "We have been developing digital renminbi products suitable for the elderly or people who exclude the use of smart terminals. In addition, the issuance of digital renminbi is not achieved by administrative coercion, but should be carried out in a market-oriented form. People can issue as much as they need to exchange. In addition, as long as the people have a demand for using paper money, the People's Bank of China will not stop paper money. issue.

According to Ms. Li (pseudonym), a citizen of Shenzhen who has used it, the digital RMB APP has functions such as "deposit bank" and "recharge wallet". Swipe to pay, swipe to collect, and the payment interface has scan and QR code. Ms. Li talked about the biggest feeling of using digital renminbi is speed and safety. "It's different from WeChat and Alipay. When the network is disconnected, the mobile phone can be touched to complete the payment, and the design of 'money' flying away on the screen is very expensive."