Here are 10 things you need to know before the digital yuan becomes universal

Originally written by: 0x2, BlockBeats

Beijing has just released another 200,000 digital yuan red envelopes, allowing lucky recipients to experience digital yuan payments on apps such as JD.com and Didi. In recent half a year, with the implementation of digital RMB pilot areas more and more, the use of more and more rich scenarios, from only one or two banks pilot to the current industrial and agricultural construction of the four major banks, Alipay WeChat access to digital RMB everything shows that the comprehensive implementation of digital RMB is getting closer.

There are still a lot of questions about this new thing that is going to replace cash and be used all over China, such as "Is the digital RMB related to WeChat Alipay?" "And" Can you mine?" "Or" Will you lose your money if your phone breaks?" And so on.

RunchBlockBeats has also experienced the digital RMB wallet internally. This article answers the top 10 questions about the digital RMB. I believe that after reading this article, you will have a relatively comprehensive understanding of the digital RMB.

  (Rally note: since digital RMB is not fully open and still in the pilot stage, each tester needs to abide by the confidentiality agreement, so the following user interface does not have detailed picture description.)

1. What is the digital RMB?

The digital RMB is a legal tender in digital form issued by the People's Bank of China.

Notice the three key words, "People's Bank", "Digital Form" and "Legal tender". The reason why we emphasize these three key words is that the banknotes we spend in our daily life and the RMB deposited in our bank cards are the legal tender issued by the People's Bank of China. There is only one difference between the definition of the renminbi and the digital version.

So, just remember the "digital RMB", it is "RMB", it is "money", and it is basically understandable.

Just the form of this money from before everybody buys a thing to draw out money "banknote RMB", swipe a card "buckle bank deposit", sweep the code "pay treasure balance", became "digital form" "digital RMB". The place where the paper money is put is called the wallet, and the place where the digital RMB is put is called the digital RMB wallet, which is installed in your phone in the form of a "digital RMB APP".

Since it is legal tender, it can circulate like paper money, and no one can reject the digital RMB after it is fully promoted. Moreover, compared with paper money, digital RMB issuance greatly reduces costs in the field of printing, circulation and trading and improves the efficiency of the whole society, which will be a solid foundation for the development of China's digital economy.

In other words, the first feature of the digital RMB -- legal tender.   

2. Will Converting Numbers RMB Cause Inflation?

No, because no new money is being printed.

The second characteristic of the digital RMB is that it is equivalent to the RMB. How much is the value of 100 yuan paper, then the number of 100 yuan is worth how much.

At the present stage, the digital RMB will be exchanged with deposits in bank cards. For every RMB 1 of digital RMB converted, banks will have to hand over a RMB 1 reserve, or 100% reserve, to the central bank.

In the process of exchanging digital RMB, there is no printing of money. We can also exchange digital RMB back to RMB at any time, so there will be no inflation caused by the conversion of digital RMB.

3. Digital RMB can protect privacy?

This brings us to the third feature of the digital yuan: anonymous offline trading.

When we use paper money, we are actually conducting anonymous offline transactions. For example, you and the store owner, you do not know, but you in order to buy ice cream, out of the two 1 piece of paper money, this is called anonymous transactions. The action that you buy ice cream does not need others or the system will confirm, you and the boss confirm 2 yuan ice cream, hand in money hand in delivery went, this is called off-line trade.

Now, when you use the payment software or a bank card to pay, the information of the transaction object, location, amount and so on will all be sent online to their headquarters, which will become real name online transaction. The payment software will record your data, and they will use your financial information to analyze and recommend products.

Digital RMB solves this problem. When using digital RMB, whether it is to buy things online or scan the code offline, the information of the paying person will be encrypted and then pushed to the merchant. Both parties of the transaction will carry out anonymous processing through technology and system, which well protects the privacy. What's more, according to media reports, digital RMB can be used for offline transactions in places where both parties have no network and no signal. The "NFC touch" function of digital RMB can be used for payment, that is, double offline transactions.

This led to A new question: A mobile phone boarded open flight mode, B mobile phone boarded again open fashion mode, is not money can not be connected to the Internet offline spend 2 times?

In the test, if the receiver and the payer are offline at the same time, the transaction is unsuccessful; if the receiver is offline and the payer is online, the transaction is feasible; if the payer is offline and the payer is online, the transaction is not possible. That is to say, the spender must broadcast the transaction online at this stage. Visual transactions between two parties offline may only be open to authenticated merchants and special devices.

At the same time, due to security considerations, the digital RMB is not completely anonymous, but controllable anonymity, when the fight against money laundering, terrorist financing, tax evasion and other criminal activities, the transaction information is open to the relevant departments; And if there are large payments, you need to provide information to trace them back.

4. How to use digital RMB?

Digital RMB wallet use mobile phone number to register and log in, add digital RMB wallet, you can see support for the four major banks, Bank of Communications, Postal Savings Bank, etc. These banks only provide services, and they can register digital RMB wallets without their bank cards. On the one hand, it protects privacy and on the other hand, it lowers the threshold for the use of old people and children. After the registration is completed, you will see such an interface, sliding up and down for payment and collection, if two mobile phones have NFC, you can also touch the payment, normal payment and settlement speed is very fast.

So how do you own digital yuan?

1. Charge money. Only when you charge money can you become powerful. You need to authenticate your real name and then recharge with your bank card.

2, make money, let the other party or others directly with the payment function to transfer money to you, happy.

With the money, in addition to offline face to face payment, but also online payment. If you think more abstractly, a virtual big wallet can be divided into several sub-wallets, which are pushed to other apps we use in daily life through the APP of digital RMB to connect, and then you will see such options when you pay, and then you can pay and use. For example, I can push the sub-wallet of the digital RMB wallet to the APP of Station B. When the APP of Station B recharges B currency, ah, I can directly deduct money from the digital RMB wallet, and then charge my favorite UP main.

For another example, I can connect JD.com shopping. JD.com used to ask me to bind my card and pay by jumping to WeChat, but now I can directly pay by digital RMB. JD.com only knows that I have paid the money, but does not know anything else. And in the future, Taobao can avoid the monopoly of payment such as WeChat and WeChat not using Alipay, because digital RMB is the legal currency and the platform must accept it.

5. Digital RMB can be paid without networking. What if it is stolen and brushed?

This brings us to the fourth feature of the digital RMB: high security.

In the past, lost money can not find the real can not find, now after the digital RMB, your mobile phone is broken, lost, you can report the loss of the digital RMB account to get back, the money will not be lost. And through the verification method and system that the central bank has not exposed, which apparently is the optimized version of the blockchain technology, your transaction cannot be tampered with, your account cannot be forged or copied by others, and a coin information will be synchronized after each transaction is completed.

Brush theft also do not need to worry.

The financial sector, telecom operators respectively mastered a part of the data, once the theft of such as brush crime occurs, the judicial organs, law enforcement agencies follow the map to catch the bad guys. And the People's Bank of China's digital currency research institute Mu Changchun said that in case of digital RMB telecom fraud, the money can be recovered to protect property security.

6. Why don't digital wallets pay interest?

Digital RMB is money, and digital RMB account is a virtual wallet. Can you imagine that if you put notes and coins in your wallet, will it increase the interest rate by itself? There would certainly be no interest. Therefore, a digital RMB account needs to be abstractly imagined as a wallet stored in the digital space. When money is stuffed into the wallet, it is not deposited into a current account or financial products, so there will be no interest.

However, it can be imagined that in the future, sub-wallet will be pushed to financial APP, and digital RMB will be processed in financial management, which can also realize the financial management function similar to Yu 'ebao and WeChat change connection.

7. Will Digital RMB Kill Alipay and WeChat Pay?

They are not the same thing, do not exist to kill the argument, but may change the mobile payment pattern.

As I said just now, the digital RMB is the currency, the "money" itself, while the WeChat payment and Alipay payment are a way of receiving or paying money. We buy an ice cream, the ice cream, 2 dollars, you can choose to pay bills or COINS, or WeChat pay pay treasure to sweep code to pay, or digital RMB payment to touch now, the process, you paid the 2 dollar value of the yuan by hand, software, digital currency to the boss, the boss received the money, give you ice cream.

Everything has changed. No matter what method you use, you are always handing money to each other, but the way and the route of transmission have changed. The emergence of Alipay and WeChat payment made the payment process more convenient and faster, and there was no fake money, so it quickly became popular. For a fee, you give them your privacy and information, you read a lot of ads, you have a fee when you withdraw your money, and some merchants have a fee when they collect your money. And use RMB does not need to spend money, you should have not heard to take money to buy ice cream to still have receive poundage.

As a non-refusable legal tender, the sub-wallet of the digital renminbi wallet is likely to be connected to all apps that require payment, so it is also likely to upend the current mobile payment landscape as you can now choose a more secure digital renminbi option that doesn't peep into your privacy when paying.

The current 94 percent monopoly of China's mobile payment market, dominated by Alipay and WeChat payments, may be broken. Look carefully, the past few pilots are arranged in the Jingdong.

8. Can people who can't use mobile phones use digital RMB?

Digital yuan is not mandatory. It is a supplement to paper money.

You want to use paper money with paper money, want to use digital RMB with digital RMB, WeChat pay pay treasure or as usual use.

Of course, in order to get everyone into the digital RMB era as soon as possible, there have been many products for the elderly, such as this one

This is the number of postal savings pilot yuan hardware purse, later can do this card for the elderly, to deposit some money in your wallet, and the number of set can be used offline, after go out grandparents after only need to bring the wallet to the hardware to touch, can complete digital renminbi payments, also quite convenient? And because of the security of controllable anonymity, there is no need to worry about older people being scammed.    

9. Can you dig digital RMB?

Digital RMB is legal tender, it can only be recharged or transferred, it can not be mined! Not 1050TI, not 3090 either!

Many people are concerned about the relationship between digital RMB and digital currencies such as Bitcoin and Ethereum. Digital renminbi and bitcoin are not the same kind of thing.

The digital RMB issued by the People's Bank of China is a legal tender endorsed by the government's credit, while cryptocurrencies such as Bitcoin are decentralized virtual assets whose value is the consensus value. Digital RMB and 1:1 RMB are of equal value.

10. Can Digital RMB Become an International Currency?    

As for whether the digital RMB can be internationalized, an expert from the central bank said in April that it has begun to explore the application of digital RMB cross-border payment. At present, the launch speed of the digital currency of the People's Bank of China is far faster than that of all other countries. When the United States and Europe are still discussing whether to do it, we have already tested it on a large scale.

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