Chairman of UnionPay: Is there a payment and clearing institution after the emergence of digital currency?

category:Finance
 Chairman of UnionPay: Is there a payment and clearing institution after the emergence of digital currency?


What role does the payment and settlement agency play in this process? Shao Fu Jun analyzed two situations.

Firstly, under the two-tier system of central bank and commercial bank, this block chain covers the whole process of issuance and circulation of digital currency. The transfer of the whole transaction is accomplished directly by block chain network protocol. In this way, payment and clearing institutions will be abandoned, and in this case, transfer and Payment institutions will be marginalized.

In the second case, in the dual-delivery system, the agency issuing digital currency has its own logo. Payment and liquidation institutions can transform the existing network to support the transfer and liquidation of digital currency. By paying reserve to the central bank, the issuance amount of digital currency can be obtained. The issued digital currency becomes the agent launcher. Agency liabilities, the agencies need to identify these digital currencies, while monitoring the circulation of digital currencies. Similar to the existing bank account system, there is an additional digital currency account. Dual delivery system needs to establish a block chain network connecting the payment and transfer of digital currency of banks. At this time, cross-bank transactions occur in digital currency accounts, and payment and clearing institutions can record the settlement amount of the final users of issuing institutions. At this time, the transfer and clearing institutions can play a role and find roles in it. The following is the full text of the speech:

Thank you. Just now Secretary-General Heming said that digital currency is particularly hot this year. There are many articles and opinions. I remember that in about 2015, President Zhou of the Peoples Bank of China held a meeting in our conference room on the 9th floor and proposed to study digital currency. At that time, when I was the director of the office, we were all surprised. What is digital currency? Its very novel and its very shocking to everyone. Nowadays, there are many articles and opinions on digital currency. To be honest, I havent seen any real digital currency yet. What is digital money? Everyone thinks differently. We have also done some research on digital money, including that of UnionPay. My personal research is very superficial, so today I am here for discussion.

First, what is the intrinsic value of the development of digital money? This question may seem simple to everyone. The evolution of monetary form is a process of constant innovation. We have all studied monetary banking. Looking back at the history of the development of money, as a general equivalent, the emergence and development of each form of money, whether it is shell or later precious metals, metal coins or the cross-fertilizer and silver tickets that appeared in China at first, They are all based on the innovation under the historical conditions at that time. Moreover, the function of this currency is further improved and enriched.

At present, we really need to think about the essence of digital money and the innovative value that digital technology brings to money. According to the classical theory, payment means, storage tools and billing units are the three basic functions of money. How to realize these three basic functions of digital money? I think this is a very complicated and interesting problem, which deserves constant study and discussion.

Business-led encrypted digital currencies, such as Bitcoin, which had been hot for the past two years, did not end up being the currency of choice. Because its price fluctuates constantly, it is generally believed that it is a digital asset, or a digital commodity.

During this period, Libra attracted great attention. On the one hand, the monopolistic technology companies and the huge network advantages of the digital economy have a coordinating effect. It is believed that this will pose new challenges to the operation and supervision of the existing financial system, thus arousing concern from all sides. On the other hand, it is also because of its goal to create a super-sovereign currency, and designed to anchor a package of currencies as the basis, is a stable currency program. It has made new attempts in strengthening credit and stabilizing the currency system. So far, many details are not clear. The application scenario is still focused on cross-border payment. So how about the future development and future prospects, it really needs further observation.

From the point of view of national currency theory, in the future, the development of digital currency, we hope that the greatest possibility is the statutory digital currency issued by the central bank based on national credit. Of course, the statutory digital currency is still under study, and there are many forms and schemes. But in terms of its role, it should be said that it will have a great positive impact.

The first is to improve the efficiency of monetary operation monitoring and enrich the means of monetary policy. Currency issuance now is based on statistics and estimation, because there is no effective real-time monitoring means for currency circulation after issuance. The issuance of the central banks digital currency will make it possible to collect real-time data such as money creation, accounting, flow and so on. After data desensitization, it will conduct in-depth analysis through big data and other technical means, so as to provide a useful reference for the monetary policy formulation and implementation, and provide a useful means for economic regulation and control. u3002 At the same time, the central bank digital currency can also effectively provide some help in anti-money laundering and anti-terrorism financing.

Third, we should improve the efficiency of payment, especially cross-border payment, and establish an open payment environment.

From the point of view of the most basic payment function of money, through the use of legal digital currency, the circulation network of legal currency can be greatly flattened, the comprehensive interconnection and interoperability at the bottom of the payment system can be realized, the links of exchange can be greatly reduced, the liquidity of cross-border funds can be improved, and the traditional cross-border exchange can be solved in the long chain. This is what I want to say about its advantages and functions.

On the other hand, it does face some difficulties and problems. Otherwise, how can we not see the practical scheme that is widely used now? In terms of the development of legal digital currency, firstly, there are still some problems in its technical implementation. Legal digital currency has many advantages in theory, as we have just said. However, due to the current technical level, it is difficult to achieve real-time data acquisition, monitoring and analysis of large amounts of money, and to carry out efficient and accurate programmable operation.

Secondly, the difficulty of international coordination is also a problem. The coordination of monetary policy and exchange rate policy is a difficult problem under the current exchange rate situation. After the use of legal digital currency, coordination will be more difficult. Just like the supervision of payment market in different countries, there are great differences among countries, and the starting point and goal of studying digital currency in different countries are also very different. At present, some countries support it, some are on the sidelines, and some are explicitly prohibited.

Thirdly, there are also some difficulties in basic preparation. From the top-level design point of view, statutory digital currency will have a profound and tremendous impact on the underlying operational logic of various types of financial business and financial services. At present, the preparation for its comprehensive application in the financial system is still seriously inadequate. It lacks the corresponding underlying operational norms, as well as the corresponding regulatory mechanism. For example, whether it is anonymous, whether it is interest-bearing and other basic issues are still under discussion. This is from the perspective of the statutory digital currency. There are also some problems from the perspective of commercial digital currency. Fundamentally speaking, the current commercial digital currency schemes are still tokens, which are difficult to really exist as currencies. There are also some difficulties and problems.

One is trust. Value stability is the prerequisite for currency to be accepted and widely circulated. At present, if the issuer of commercial digital currency is a commercial alliance, the principle and basis of currency issuance are commercial trust, lack of stable and transparent operation mechanism, whether there is oversupply, whether there is insufficient value issuance, how about the liquidity of its own cash, whether the reserve fund is misappropriated, these problems are indeed repaid. Its a question, but there are also some risks.

Second, the risk of technology control. Block chain technology, in addition to the effectiveness of high-frequency transaction processing and rapid response, these bottlenecks, commercial digital currency involves billions of customer information, customer privacy disclosure, security information. At the same time, the anonymity of commercial currencies poses challenges to the regulation of anti-money laundering and anti-terrorism financing.

Fourth, the risk of monetary policy and foreign exchange management. After the emergence of commercial digital currency, once its transnational operation affects the liquidity of legal currencies and the monetary sovereignty of non-reserve currency countries, it may also lead to the loss of funds in vulnerable countries and the failure of anti-money laundering measures. The failure of monetary policy has great impact and risk on monetary policy and monetary operation system.

The third issue discussed is the role of payment and clearing institutions in the issuance of digital currency. As a payment and liquidation institution, UnionPay really cares about the emergence of digital currency, which has been widely used. Is the payment and liquidation institution still there? What is the role of payment and clearing institutions? To be honest, this is our greatest challenge and our greatest concern. From the point of view of commercial digital currency, Libra, for example, will allocate a globally common encrypted user account, an account, after an institution or user registers. Through the use of Libracode to transfer currencies in different places, the point-to-point transactions can be realized. This transaction process adopts distributed accounting, including Libra system verifier, storage and updating of accounts, optimizing transaction process and simplifying reconciliation. But the whole transaction is a subversive change to the transfer and settlement institutions. At present, we can not see the commercial banks, the accounts of commercial banks and the transfer and settlement institutions. Whats the role of it, its possible that its gone. From the standpoint of legal digital currency, should we also consider this problem and how to link it with the existing electronic payment system? At present, according to my understanding, the Peoples Bank of China Digital Monetary Research Institute or the relevant institutions put forward the plan, the central bank put forward by the central bank top-level design, the construction of the Peoples Bank of China, commercial banks such a dual system of investment, this system is slightly better. The central bank is responsible for supervising the whole system and formulating policies for the issuance and circulation of digital money. To ensure the security, robustness and risk controllability of the system, authorized by the central bank, several agency issuers, such as commercial banks and the central bank, build a real-time computing system based on block chains, obtain the issuance right of digital money through deposit reserve of commercial banks to the central bank, thus pushing digital money into market circulation.

There are also two situations in this case. One is that under the two-tier system of central bank and commercial bank, the block chain covers the whole process of issuance and circulation of digital money. That is to say, under the dual system, the block chain will register the issuance information and circulation information of block chain to the end user, and the digital money transaction is still a point-to-point transaction process. Users, after issuing a request for digital currency transaction, verify and record transactions directly by the relevant nodes of the block chain network in the block chain. The whole transaction is carried out directly by the block chain network protocol. In this case, the transfer payment institution is also marginalized.

In addition, in the dual-delivery system, the agency issuing agency has its own logo for issuing digital currency, ICBC has the logo for issuing industrial bank, Agricultural Bank has the logo for agricultural bank, and the payment and liquidation agency carries out a transformation of the existing network to support the settlement and liquidation of digital currency, and obtains digital currency through the central banks reserve payment. The issuance volume and the issuance of digital currency become the liabilities of the agent issuing agencies. Each agent issuing agency needs to have a mark on these digital currencies. It is equivalent to issuing Hong Kong dollars. The Bank of China has its own logo and monitors the circulation of digital money. This situation is slightly better, similar to the existing bank account system, there is an additional digital currency account. Dual-delivery system requires the establishment of a block-chain network connecting the payment and transfer of digital money of banks. At this time, when cross-bank transactions occur in digital money accounts, the payment and clearing institutions can record the amount of settlement of the final users of the issuing institutions. At this time, the transfer and clearing institutions can play a role. Faces can find roles. Our country has established a large-scale, super online banking and other settlement and clearing system covering all overseas funds, and the development of mobile network is also very fast. From our point of view, we suggest that the construction of digital currency should attach great importance to the role of existing payment and clearing institutions. Thank you! Source of this article: Pengchao News Responsible Editor: Zhang Mei_NF2100

In addition, in the dual-delivery system, the agency issuing agency has its own logo for issuing digital currency, ICBC has the logo for issuing industrial bank, Agricultural Bank has the logo for agricultural bank, and the payment and liquidation agency carries out a transformation of the existing network to support the settlement and liquidation of digital currency, and obtains digital currency through the central banks reserve payment. The issuance volume and the issuance of digital currency become the liabilities of the agent issuing agencies. Each agent issuing agency needs to have a mark on these digital currencies. It is equivalent to issuing Hong Kong dollars. The Bank of China has its own logo and monitors the circulation of digital money. This situation is slightly better, similar to the existing bank account system, there is an additional digital currency account. Dual-delivery system requires the establishment of a block-chain network connecting the payment and transfer of digital money of banks. At this time, when cross-bank transactions occur in digital money accounts, the payment and clearing institutions can record the amount of settlement of the final users of the issuing institutions. At this time, the transfer and clearing institutions can play a role. Faces can find roles.

Our country has established a large-scale, super online banking and other settlement and clearing system covering all overseas funds, and the development of mobile network is also very fast. From our point of view, we suggest that the construction of digital currency should attach great importance to the role of existing payment and clearing institutions. Thank you!