Recently, Shenzhen has made a big move to take the lead in starting the pilot project of digital RMB and jointly issue 10 million digital red packets with the central bank.
According to official sources in Shenzhen, a total of 10 million yuan of digital RMB red envelopes were issued, each with a total amount of 200 yuan, with a total of 50000. Since October 9, individuals in Shenzhen have been able to register and apply for lottery through the platform. After downloading the “digital RMB app”, the winning users can authenticate and receive red packets.
Digital RMB has “legal identity” as common currency
As the name suggests, digital RMB is a kind of virtual currency, but it is different from bitcoin, which is legal tender issued by the people’s Bank of China, with the highest effectiveness and safety. Digital RMB has the same “legal identity” as cash, and its purpose is to replace part of cash through electronic payment.
Shenzhen’s first batch of digital RMB red packets will be collected for 3 days. After registration, the system will draw lots. The winning red packets will be issued at 18:00 on October 12, and the service life is one week.
It is understood that at present, 3389 merchants in Luohu District of Shenzhen have completed the transformation of the digital RMB system, and the winning customers can use the digital RMB red envelope for consumption among all kinds of merchants who have transformed the system.
Digital RMB APP is different from WeChat, Alipay and other software. It can be used directly without binding bank cards. This payment method is more similar to the traditional currency, and it can also be used for users who cannot or inconveniently hold bank accounts in overseas tourism and remote mountainous areas.
Digital currency is traceable, and double offline payment technology is more secure and convenient
In August this year, the Ministry of Commerce issued the “overall plan for comprehensively deepening the innovation and development of service trade” and proposed that the pilot project of digital RMB should be carried out first in Beijing, Tianjin, Hebei, Yangtze River Delta, Guangdong, Hong Kong and Macao Bay area, as well as in the central and western regions where conditions permit. At present, the identified pilot projects include Shenzhen, Suzhou, xiong’an new area, Chengdu and the future Winter Olympics.
The use of digital renminbi is similar to that of Alipay, WeChat wallet and so on. The main difference is in the technical level. Previously, Hao Yi, a researcher at the Bank of China Research Institute, said that the dual offline payment technology of digital RMB could complete the transaction without the network.
At the same time, digital currency also has the characteristics of traceability. The source and circulation of currency are well documented. It can also monitor the loan issuance of commercial banks.
Digital RMB has many new designs in terms of safety and convenience
- Dual offline payment: like paper money, it can meet the demand of electronic payment in places with poor network signal such as aircraft, cruise, underground parking lot, etc;
- Higher security: in case of embezzlement, digital RMB can provide loss reporting function for real name wallet;
- Multi terminal selection: people who are unwilling to use or have no ability to use smart phones can choose IC cards, function machines or other hardware;
- Multi information strength: according to the strength of mastering customer information, the digital RMB wallet is divided into several levels. In case of large amount payment or transfer, it must be through the real name wallet with high information intensity;
- Point to point delivery: fixed point to person delivery can be realized through digital currency smart contract. People’s livelihood funds can be distributed to the people’s digital wallets, so as to eliminate the possibility of false claims and embezzlement;
- High traceability: when the authorities issue corresponding legal documents in strict accordance with the procedures, corresponding data verification and cross comparison are carried out to provide information support for cracking down on crimes. Even by breaking up the whole into parts and other means, corrupt elements will find it difficult to evade supervision.
Digital RMB is a digital form of cash, not a virtual currency like bitcoin. Yi Gang, President of the people’s Bank of China, once pointed out that “the R & D work of digital RMB does not have a pre-set technical route, which can be combined with the consideration of blockchain technology, or new technologies evolved from the existing electronic payment.”
In the modern society with the rapid development of digital economy, people’s demand for money is also turning to digital. The introduction of digital RMB will improve the security and convenience of payment.
It will take time for the full promotion of digital RMB
Digital RMB is more in line with the habits of modern consumption and has the same consumption and circulation capacity as cash. It is higher in security than virtual currency and more convenient than existing payment methods. It can be used without binding bank card after registration, which is more conducive to the promotion of digital RMB in a larger population.
The concept of digital RMB has been put forward for several years, and finally it has been put into practice in Shenzhen. After a series of tests and evaluations, it may be fully promoted in the near future. At present, Bank of China, industrial and Commercial Bank of China, Agricultural Bank of China and China Construction Bank support the exchange of digital RMB.
However, it still needs some time and practical experience before the official launch of digital RMB. In the future, the pilot scope of digital RMB will be gradually expanded to meet the needs of consumers in the era of digital economy.