Ministry of Commerce: Digital RMB will be piloted in Beijing Tianjin Hebei and Yangtze River Delta

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Original title: heavyweight! Digital RMB will be piloted in Beijing, Tianjin, Hebei and other qualified areas
Beijing daily client news, the official website of the Ministry of Commerce issued the “notice on printing and distributing the overall scheme for comprehensively deepening the innovation and development of service trade”, which announced the pilot areas of digital RMB.
The reporter noted that Article 93 “comprehensively deepen the pilot tasks, specific measures and division of responsibilities for the innovative development of trade in services” proposes to carry out pilot projects of digital RMB in Beijing, Tianjin, Hebei, Yangtze River Delta, Guangdong, Hong Kong and Macao Bay area and qualified pilot areas in central and Western China.
The pilot areas include Beijing, Tianjin and Hebei
According to the circular, the people’s Bank of China formulates policy and safeguard measures; first, Shenzhen, Chengdu, Suzhou, xiong’an new area and other places and relevant departments of the future Winter Olympics scene will assist in promoting the measures, and then expand to other regions as appropriate.
What is digital currency? In short, the central bank’s digital currency is a digital alternative to paper money. It has an English Name: DC / EP (digital currency electronic payment), namely digital currency and electronic payment instrument.
“The functions and properties of digital currency are exactly the same as paper money, but its form is digital.” Mu Changchun, director of the digital currency Research Institute of the central bank, said. In other words, the concept of digital currency is well understood by regarding the digital currency issued by the central bank as digital RMB cash.
Digital currency is the best alternative to cash
How will digital money affect our lives? What is the difference between it and paper money and mobile payment, and how will it coexist?
Fan Yifei, vice president of the people’s Bank of China, said that the central bank’s digital currency focuses on replacing M0 (i.e. paper money and coins), and maintains the property and main characteristics of cash, meeting the demand of portability and anonymity, and will be the best tool to replace cash.
Mu Changchun once described such a scenario: as long as you and I have DC / EP digital wallets on my mobile phones, even the network is not needed. As long as the mobile phone has electricity, if two mobile phones touch each other, the digital currency in one person’s digital wallet can be transferred to another person. Digital money does not need to bind any bank account when it is paid, unlike WeChat and Alipay bank.
Why should China implement digital currency? At present, the digital economy is an increasingly important driving force for global economic growth. The R & D and application of legal digital currency can effectively meet the public’s demand for legal tender under the condition of digital economy, improve the convenience, security and anti-counterfeiting level of retail payment, and boost the development of China’s digital economy.
The central bank started the research on legal digital currency earlier. In 2014, the central bank set up a special team to conduct special research on the issues of digital currency issuance framework, key technologies, circulation environment and relevant international experience. At the end of 2017, with approval, the central bank organized some powerful commercial banks and relevant institutions to jointly carry out the research and development of the digital RMB system (DC / EP). DC / EP has basically completed the top-level design, standard formulation, function research and development, joint commissioning and testing under the premise of adhering to double-layer operation, cash (M0) substitution and controllable anonymity.
There is no timetable for the official launch
After sorting out the public reports, this year, the R & D process of China’s digital currency is speeding up.
In January this year, the central bank official micro article said that in 2019, the central bank will basically complete the top-level design, standard formulation, functional research and development, joint debugging and testing, etc. The national teleconference on currency, gold, silver and security work in 2020 held on April 3 proposed to unswervingly promote the research and development of legal digital currency. At the first quarter financial statistics Conference on April 10, Zhou Xuedong, director of the general office of the people’s Bank of China, said that digital currency will be promoted orderly according to the plan. Digital economy may become a new highlight of economic development, and the research and development requirements of digital currency will be higher and higher.
In April, the news of “the central bank’s digital currency in the Agricultural Bank of China” and “the first application scenario of the central bank’s digital currency will be implemented in Xiangcheng District of Suzhou” continued to ferment, and a photo of the internal test of the bank’s account was spread on the Internet.
In response, the digital currency Research Institute of the central bank said that the online DC / EP information is the test content in the process of technology research and development, which does not mean that the digital RMB is officially issued. The current closed test of digital RMB will not affect the commercial operation of listed companies, nor will it affect the RMB issuance and circulation system, financial market and social economy outside the test environment.
On August 3, the people’s Bank of China held a video conference on the work of the second half of 2020. It was mentioned in the meeting that the pilot project of legal digital currency closure was successfully launched, and the R & D of legal digital currency will be actively and steadily promoted in the second half of 2020.
Recently, Yi Gang again disclosed the latest progress of digital currency. He said that at present, the R & D work of digital RMB follows the principles of steady, safe, controllable, innovative and practical, and first conducts internal closed pilot tests in Shenzhen, Suzhou, xiong’an, Chengdu and future Winter Olympics scenarios to test the theoretical reliability, system stability, functional availability, process convenience, scenario applicability and risk controllability.
“However, the current pilot test is only a routine work in the R & D process, which does not mean that the digital RMB will be officially launched, and there is no timetable for its official launch.” Yi Gang said.