Author: Kristie Pladson
Source: Voice of Germany Chinese website
Imagine: Go to the bank to get cash, neither go to the bank nor the cash.How is this going?If the digital RMB plan of the People's Bank of China is successful, this may be a future life.
Since the beginning of this year, China has gradually expanded its first set of central bank digital currencies.This currency is called DCEP, which is digital currency electronic payment.
Although other countries have also made similar attempts to launch digital sovereignty currencies, as the world's second largest economy, China's changes are significant.
In the future, everyone will use DCEP. China Bitcoin pioneer and millionairen Guo Hongcai said in an interview with BBC reporters in August.
Although there are rumors, DCEP may be available at the earliest this year.However, the People's Bank of China set the target before the Beijing Winter Olympics in February 2022.
If this project is successful, Digital RMB can eliminate the demand for online payment services such as physical cash and PayPal, and to form another challenge for the United States to dominate the United States.
DCEP is a digital currency based on RMB.The value of Bitcoin and other cryptocurrencies may fluctuate with market speculation-to most governments, it is not suitable for them to be widely used-DCEP is different, and it will be as stable as the real RMB.
Like cash, each digital RMB was founded, signed and issued by the People's Bank of China, the People's Bank of China.However, unlike cash, banks can track the whereabouts of each digital currency issued by it.
Commercial banks distribute DCEP to customers. Customers can download currency from bank accounts to digital wallets or applications, just as they withdraw cash on ATM machines.
With digital wallets installed with DCEP, whether you buy things in a grocery store or make money for friends, consumers can pay non -contact instant payment to anyone who uses the service.Theoretically, this can eliminate the demand for third -party digital payment services such as WeChat or Alipay, which is currently widely used in China.
The Chinese are commonly used to using mobile phone payment, which makes the transition to digital RMB easily.This will bring huge benefits to the Chinese government.
Alexander Badenheim, a senior project manager of the Alexander Badenheim, told Germany that the issuing digital sovereign currency may be a means of re -controlling domestic finance.
In this way, China may be one step ahead of other countries in this field.As more and more countries use digital currencies, China has become a pioneer.
Badenheim said that China may want to create its own international payment mechanism, similar to SWIFT to help financial institutions handle transactions.The new digital currency international payment mechanism will not be dominated by the US dollar, but is dominated by digital RMB in China.
He said: I think this is particularly important at the moment we talk about the decoupling of China and the United States.
According to data from the International Monetary Fund, more than 60%of the current foreign exchange reserves of central banks are US dollars, which makes the dollar a factual global currency.Compared with other currencies for transactions, the US dollar is more convenient in international payment.The world's second largest currency is the euro, accounting for 20%of international reserves.
If digital RMB is widely accepted, the central banks of various countries may also hold DCEP reserves.As the only distribution of DCEP, the Central Bank of China will have a greater influence on the global financial market.
By becoming the first major country in the field of digital currency, China may have a stronger position in the global economy and no longer worry about being sanctioned by the United States.This is another big step in challenging the United States in the world.
This is just the idea of China.However, whether other countries will be so keen on the use of digital currencies issued by China are another matter.
Badenheim said that the potential possibilities of tracking the payment trajectory will make other countries and international payers discourage.
Theoretically, the Chinese government can abuse the power to track digital currency to monitor the people, or to monitor any company or country.
Badenheim said: It can be said that China purchases products from a country and paid for digital currency.Then the country uses RMB digital currency to buy things in another country, and the People's Bank of China may track the cash flow and products purchased by these countries.This is a possible scene, but it is not impossible.
He said: The question is whether other participants are willing to accept the risk of China that may track its financial transactions.
Therefore, China's leading position is not enough to ensure that it has become a global leader in digital currency.
European Central Bank announced on October 2 that it is ready to launch a digital euro plan in the European Union.For a long time, data protection has been pivotal in the formulation of the EU policy.
Of course, there is also competing from Facebook.This social media platform wants to provide a privately -operated global currency for more than 2.7 billion users, which makes financial regulatory agencies frustrated.
Who will be observed in the competition in the field of digital currency.At present, even in China, physical cash will continue to circulate.
But don't doubt that no matter what digital currency payments in the future, our life will change significantly-from the supervision of international cash flow, someone watched how much money you paid for a takeaway.
