1 thought on “Digital currency arrived in May, you have to know this knowledge before use”

  1. 1. What impact will the application of central bank digital currencies on daily life?

    Dong Ximiao: Renminbi (banknotes and coins) is a legal currency. According to laws and regulations, no institution or individual can refuse the use of RMB. Similarly, the central bank's digital currency is a legal currency and a digital RMB. Merchants cannot refuse its use, otherwise it will be illegal. In the future, with the application of digital currencies in the central bank, user payment options will be richer and more convenient and fast. As the basis of the entire financial activity, a more convenient and fast payment method is conducive to reducing transaction costs and improving financial operation efficiency. In addition, the digital currency system helps to trace trading dynamics and the flow of capital, which is conducive to preventing illegal transactions such as money laundering.

    Bi Tongtong: The landing of digital currencies will not be achieved overnight, and there will be a popular process. However, it is certain that the issuance and implementation of digital currencies of the central bank will further promote the development process of China's "cashless society". For the people, the use of "electronic cash" in daily life will increase further. The people in remote areas will deepen the benefits of the central bank's digital currencies. For example, the government or institution will issue cash subsidies to individuals. In the past, some people may not have a bank account. And register a central bank's digital currency wallet, you can directly receive subsidies issued in the form of digital currency, which can effectively avoid the phenomenon of illegal misappropriation of special funds.

    2. Will the paper currency be completely replaced?

    Dong Ximiao: Digital currency cannot completely replace cash. At least from the current point of view, there are still some technical restrictions. In addition, due to different user habits, not everyone is used to this method of payment. For example, some older people may not accept digital currencies.

    Bi Tongtong: The central bank's digital currency will not completely replace the paper currency in a certain period of time. It will be a supplement to the daily consumption payment methods of ordinary people. Taking towards "cashless society" is a long -term process, which may take decades or hundreds of years to truly realize.

    3. What are the similarities between the central bank's digital currency and non -bank payment such as Alipay and WeChat?

    Dong Ximiao: The central bank's digital currency is a legal currency, and WeChat payment and Alipay are just a payment method. They have different effects. Specifically, institutions or individuals do not accept Alipay or WeChat payment, and there is no legal problem. But refusing to use cash or digital currency payment is illegal. In addition, behind the statutory currency is state credit. Behind bank card payment is the credit of commercial banks. Behind Alipay and WeChat payment is the credit of the Internet company. These three are different levels. Compared with the non -bank payment method, the central bank's digital currency has higher security and wider use, and it does not need to bind a bank account.

    Bi Tongtong: From the perspective of the public, in terms of experience, the central bank's digital currency and third -party payment are similar, and they need to move terminal devices. However, the assets of ordinary people on Alipay and WeChat are actually a bookkeeping, and these two payment tools are based on commercial banks. Third -party payment tools such as Alipay and WeChat cannot be transferred, while the central bank's digital currency can break the barriers of the payment industry and achieve circulation between the supported banks and payment tools. At the same time, WeChat and Alipay are paid in real -name, and the central bank's digital currency can meet the needs of ordinary people to a certain degree of anonymous payment.

    . Some people analyze that the central bank's digital currency will impact the status of Alipay or WeChat payment; some people believe that the use scenario of Alipay and WeChat payment is already very rich, and the introduction of digital currency of the central bank may not bring it with Come too much surprise. is that so?

    Dong Ximiao: The central bank's digital currency does not have any impact on Alipay or WeChat payment. The effectiveness of digital currency is not comparable to WeChat payment and Alipay. After the official launch of the digital currency, no matter the amount of the payment, no matter what kind of payment belongs to, whether it is purchasing goods, payment services, paying taxes, etc. For the form, the income party can freely choose to accept or refuse. There may be a possibility -more and more people using central bank digital currencies, fewer and fewer people using Alipay and WeChat.

    Bi Tongtong: Whether the central bank's digital currency will impact WeChat payment and Alipay's market position. In the long run, this is a process determined by the market, but in theory Effects. The central bank's digital currency will enter the lives of ordinary people as a supplementary payment method. It is foreseeable that in the future, Alipay and WeChat payment will also be connected to the central bank's digital currency. The functions of payment tools are more diverse, but the channels and scenes have not changed.

    5. With the advent of the digital currency era, which new problems may be prominent?

    Dong Ximiao: For the entire society, the landing application of digital currencies can reduce transaction costs, improve financial operation efficiency, and also prevent illegal activities such as money laundering. However, it is still in the test stage, and it takes time to formally apply and even large -scale promotion. It takes some time to perceive and understand the advantages of digital currency.

    Bi Tongtong: The arrival of the digital currency era will change the existing social structure and institutional functions to a certain extent. Obviously, the closure of the money printing factory may occur in the future and the bank practitioners, especially ordinary tellers, The ATM machine is further reduced. In addition, digital currency will also become a new means and guise of criminal fraud. At present, there have been scams that have a fraud under the banner of the central bank's digital currency. These are new issues that need to be faced in the future.

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