Jiangsu only more than 100 kilometers from China Financial Center ShanghaiProvincial Changshu City will use digital RMB to pay for national staff from May. This is the latest attempt for digital RMB to enter ordinary people's money bags.
A number of Chinese media reported on Saturday (April 22) that the Changshu City Local Financial Supervision Administration and the Changshu Finance Bureau recently issued a notice on the implementation of the full number of wages.
The notice stated that since May, the salary of the wages of Changshu's civil servants (including public officers), business personnel, and personnel at all levels of Changshu City have been paid.
Changshu is not the first place in China to pay wages with digital RMB. Previously, many districts in Suzhou City, Jiangsu Province have been implemented with digital RMB wages.
According to Caixin.com, the Xiangcheng District of Suzhou City announced in May of that year. From May of that year, some staff of institutions and institutions were paid in the form of digital RMB every month.In March 2022, 64 people in Xiangcheng District who applied for high -level talent salary subsidies to apply for high -level talents in key industries received a talent subsidy issued through digital RMB, totaling 235,000 yuan (RMB, the same below, about 45,300, about 45,300New Yuan).
In July 2022, the staff of 59 municipal departments, eight districts and towns under the county -level cities in Suzhou City, and staff of eight districts and towns and state -owned enterprises also used digital RMB in full.Pay salary.
It is not difficult to see that almost all of the salary issued by digital RMB is administrative institutions and state -owned enterprises.
Dong Ximiao, chief researcher of Zhailian, accepted the analysis of the Sino -Singapore Finance and Economics interview. Public officials paid wages in the form of digital RMB, from point to face to continuously expand the application scenario of digital RMBUse habits to further promote the promotion of digital RMB application.
Liu Dian, an associate researcher at the Chinese Research Institute of Fudan University, also said in an interview with China News and Weekly that users who can transform personnel in the system into digital RMB to a large extent willAn immediate impact.The implication, if government officials can take the lead in using digital RMB, ordinary people will do it.
What is digital RMB?
According to the research and development of China's digital RMB released in July 2021, the research and development of China's digital RMB is a white paper. Digital RMB is the legal currency of the digital form issued by the Central Bank of China.
In simple terms, digital RMB is equivalent to banknote RMB, which is real money, but there is just a mobile phone, unlike the banknotes that can be visible and touched.
The full name of Digital RMB is "DCEP, Digital Currency Electronic Payment".As the name suggests, it has both functions: currency and payment tools.Digital RMB can also be collected without binding bank cards; both parties to the income and expenditure do not need to connect to the Internet during the transaction. As long as you use the mobile phone's near -field communication function, you can transfer the mobile phone by "touch" the mobile phone.
It sounds like the process of digital RMB transactions is similar to WeChat payment and Alipay commonly used by Chinese people.These electronic payment methods have been popularized, what is the use of digital RMB?
First of all, the convenience of offline payment.The above -mentioned mobile phones "touch" can be transferred as an example. If the user's mobile phone cannot connect to the Internet, it cannot be traded with WeChat and Alipay, but digital RMB can still be traded without networking.
Second, do not rely on bank accounts.Using electronic payment methods such as Alipay and WeChat, the first step is to bind bank cards.However, the use of digital RMB does not require affiliated bank accounts. Like the use of banknotes, it can be independent of the banking system during circulation.
Chinese Broadcasting Corporation (BBC) reports that the benefits of doing so are security.If the WeChat or Alipay fails and the bankruptcy liquidation is performed, the money in the user will face crisis, and even the commercial bank of the deposit account will have a redemption crisis, and the money in the account may be difficult to withdraw.Although the chance of occurring is small, the risk still exists.The digital renminbi in the mobile phone is the same as holding a stack of cash in hand, which is not affected by the risk of bankruptcy in the middle institution.
Why do you want to implement digital RMB?
The New York Times quoted the former leader of the International Monetary Fund ESWAR PRASAD, one of the most important factors for Beijing to promote digital RMB is the success of WeChat payment and Alipay.Both have spawned a new replacement financial system that worried Chinese officials.
Plazard said: "Digital RMB is actually a defense mechanism to maintain the important position of central bank funds."
Some economists also believe that digital RMB may be able to be able to be able to be ableMake RMB as a global currency, and it is easier to compete with the US dollar because it can flow internationally internationally.However, some analysts also pointed out that the RMB will break the dominant position of the US dollar in the global payment system. It is not enough to digitize alone, and many other changes are needed.
The New York Times pointed out that in addition to the above -mentioned ambitions, digital RMB can also give the Chinese government more power to monitor the flow of funds and crack down on illegal activities such as money laundering, because the system can record each transaction.
It is reported that the development of digital RMB began in 2014. At that time, Bitcoin attracted attention in China, and the People's Bank of China established an internal group for research.In 2016, the central bank set up a department called the Institute of Digital Currency.
From the end of 2019, Digital RMB has launched a pilot test in Shenzhen, Suzhou, Xiong'an New District, Chengdu and 2022 Winter Olympics venues.In August 2020, the Beijing -Tianjin -Hebei, the Yangtze River Delta, the Guangdong -Hong Kong -Macao Greater Bay Area and the central and western China pilot areas also carried out digital RMB pilots.In October of the same year, Shanghai, Hainan, Changsha, Xi'an, Qingdao, and Dalian were added.
Many governments or units in these places issue digital RMB red envelopes to consumers to encourage people to use this currency.
However, the co -director, researcher Pan and Lin, the Digital Economy and Financial Innovation Research Center of Zhejiang University, believes that there is no need to simply pursue the transaction volume of digital RMB at this stage, but instead, but instead, it is instead.The problems that have emerged in the pilot of the digital RMB should be solved.He emphasized that these issues limited the use of digital RMB payment scenarios.
First of all, the convenience and versatility of digital RMB applications need to be improved.Panhe Lin said in an interview with China News Weekly: "If you have experienced digital RMB wallets, you will find that the payment process is cumbersome. In the digital wallet, the balance is divided into different sub -wallets, and each time you encounter a payment scenario, each time you encounter a payment scenario,You have to sign a separate contract. For example, you have signed a contract in Alipay, and you encounter Meituan and hungryDo you have to sign a separate contract for applications, JD.com and other applications."
Pan and Lin believe that a monetary tool must be widely accepted and popularized. The key is the low use threshold and high convenience. The model adopted by digital RMB will make it limited.
Secondly, where is the boundaries of digital RMB controllable anonymous. Pan and Lin said that cash is an unknown currency, and there is a certain difference between digital RMB and cash, which is controllable anonymous.
He explained that the controllable anonymous and controllable parts are the existence of transaction records in the index of RMB, and the transaction record can prevent illegal transactions and telecommunications fraud; the anonymous part is that the index RMB can protect the transaction informationSecurity to prevent illegal institutions from infringing personal information privacy.
But where are the key to information tracking and information security protection?And public to the public to eliminate the worries of the public's use of digital renminbi.
However, Liu Dian, an associate researcher at the Chinese Research Institute of Fudan University, told China News Weekly that it is necessary to build a convenient digital RMB payment scenario.For success, because as long as there is a little security risk, the impact on the entire financial system is huge. "So to promote it carefully and steadily, this is a process of continuous exploration."
It takes time to break Alipay and WeChat monopoly
The scope of digital RMB is now expanding step by step. As of April this year, it has covered 26 regions in 17 provinces and cities in China.Alipay and WeChat Payment in the field of digital payment have a long -term monopoly position, it takes some time because most Chinese people have become accustomed to these two. Data show that in China's mobile payment market, WeChat and Alipay account for 95%of 95%Market share.
Promoting digital RMB from public officials, as well as WeChat applets and video numbers, users can use digital RMB recently, China is trying to speed up the footsteps to the digital RMB era.Under the circumstances that the application scenarios, cumbersome payment process, and commercialized cashless payment have been popular, digital RMB will become part of the daily life of most Chinese people, and there is still a long way to go.
