Japanese media: Digital RMB is accelerating to advance or break the monopoly position of US dollar


According to Japanese media, China is speeding up its efforts to issue digital RMB.
On the one hand, pilot testing will be carried out in 28 provinces and cities across the country. On the other hand, it is also necessary to speed up the improvement of relevant technologies for functions such as how individual users trade.
Mu Changchun, director of the digital currency Research Institute of the people’s Bank of China, said at the Bund financial summit on the 25th: “we should manage the digital RMB wallet as a whole, unify the digital RMB cognitive system, and effectively reduce the cost of anti-counterfeiting.”
How to prevent counterfeiting is also an important issue faced by digital currency. The people’s Bank of China plans to unify the functions of digital wallets held by individuals so that only real money can enter and leave the account and prevent the circulation of counterfeit money.
According to the report, the digital RMB is the Chinese version of the central bank’s digital currency. China plans to officially issue the digital RMB before the opening of the 2022 Beijing Winter Olympics, and is now speeding up the pace of technical testing and institutional design.
At present, China has selected Shenzhen, Suzhou, xiong’an new area, Chengdu and future Winter Olympics scenes for internal closed pilot test. From December 12 to 18, Shenzhen conducted a large-scale test of digital RMB. Residents can use digital RMB to settle accounts after shopping. As of 24:00 on the 18th, 47573 winning individuals had successfully received “Lixiang Luohu digital RMB red envelope”, with a transaction amount of 8.764 million yuan.
The report pointed out that China will also expand the scope of pilot cities to 28 provinces (regions) including Beijing, Shanghai, Tianjin, Guangzhou and Chongqing. Mu Changchun said in another speech on the 22nd that new projects will be launched in the follow-up pilot process.
Among them, he mentioned the “touch and touch” function, which means that the transfer can be completed only by two smart phones close to each other. There is a feeling of hand over notes or coins. According to Mu Changchun, the function development of digital RMB has been completed.
According to the report, the people’s Bank of China has also cooperated with didi travel to study and explore the application of digital RMB in the field of smart travel.
In the pilot test conducted in Shenzhen, the management of who holds the digital RMB is carried out through the mobile phone number. After the official release, you don’t need to log in to your bank account on your mobile phone. The arrangement may be to facilitate the use of foreigners who do not have a Chinese mobile phone number, bank account or ID card.
At the level of system design, the people’s Bank of China announced on the 23rd its draft law amendment to add digital RMB as legal tender, the report said. At the stage when Japan, the United States and Europe have not yet made a decision on the issuance of central bank digital currency, China has taken a step ahead in legislation.
It is reported that the United States controls the hegemony of the international settlement system through the US dollar, and frequently uses sanctions to exclude the United States from the US dollar settlement system when attacking the opposing countries. If the digital RMB can be popularized in the world, it will undoubtedly weaken the advantages of the United States. Tensions around the digital currency are also rising.
Japan, the United States and Europe around the issuance of central bank digital currency action is also increasingly active.
According to the report, most of the financing provided by China to emerging countries and developing countries is settled in RMB, which is likely to be replaced by digital currency. If most countries start using the digital yuan, then China will probably take control of international standards.
China is actively applying for a large number of patents related to the central bank’s digital currency. Concerns about China’s possible technological and institutional leadership are forcing Japan, the US and Europe to form an axis against China.