Central bank: there is no competition relationship between WeChat Alipay and digital RMB.

category:Internet
 Central bank: there is no competition relationship between WeChat Alipay and digital RMB.


On October 25, at the second Bund financial summit, Mu Changchun, director of the digital currency Research Institute of the central bank, refuted the news that Shenzhen second-hand house traders are forced to collect digital RMB at the sub Forum on the theme of digital currency, financial technology and Inclusive Finance.

Mu Changchun, director of the digital currency Research Institute of the central bank, delivered a speech

We have issued digital RMB red packets in Luohu District to promote consumption, and we have not experimented with second-hand housing scenarios. In addition, digital RMB is equivalent to paper money and coins. Digital RMB can be bought for anything that paper money can buy. For foreign currency that paper money can exchange, digital RMB can also be exchanged, so dont worry. Mu Changchun said.

He gave the authoritative definition of digital RMB: Digital RMB is the legal tender in digital form issued by the peoples Bank of China, which is operated by designated operating agencies and converted to the public. Based on the generalized account system, it supports the loose coupling function of bank accounts, is equivalent to banknotes and coins, has value characteristics and legal compensation, and supports controllable anonymity.

Mu Changchun said that digital RMB should adhere to the central bank supervision. Centralized supervision is conducive to resist the erosion of crypto assets and global stable currency, and prevent the loss of currency issuance right. In addition, the centralized management of digital RMB can realize payment as settlement, improve the turnover rate of merchants funds, solve the liquidity problems of small and medium-sized enterprises, financing difficulties and high financing costs, improve the implementation efficiency of monetary policy, and at the same time help to break the payment barriers and market segmentation of retail, and avoid market distortion. Under the centralized management system, the peoples Bank of China can prevent and combat money laundering, terrorist financing and other illegal and criminal acts, and effectively maintain financial stability.

He pointed out that in the process of adhering to the centralized management of the central bank, several aspects should be achieved:

First, the overall management of digital RMB issuance quota, to ensure 100% preparation, to prevent over issuance.

Second, it is necessary to formulate unified business standards, technical specifications, security standards and application standards, so as to realize the interconnection between designated operating agencies and avoid payment barriers.

The third is to manage the digital RMB information as a whole. We should manage the digital RMB wallet as a whole, unify the recognition system of digital RMB, and effectively reduce the cost of anti-counterfeiting. According to the principle of double-layer operation, the central bank and the designated operating agencies will jointly develop the wallet ecological platform by means of co construction and sharing. At the same time, we should realize their own visual recognition and feature functions.

Fourth, it is necessary to coordinate the construction of digital RMB issuing infrastructure, realize the interconnection of cross operating agencies, and ensure that there will be no payment barriers.

We have found counterfeit digital RMB wallets on the market. Therefore, as in the paper money era, the peoples Bank of China is still facing the problem of anti-counterfeiting and anti-counterfeiting. In the era of paper money, the cost of anti-counterfeiting and anti-counterfeiting is high. In the era of digital RMB, we need to reduce the cost of anti-counterfeiting, which requires us to coordinate the construction of digital RMB wallet ecology, so that people can identify it. At the same time, on the other hand, operators should develop their own characteristic functions to provide more abundant payment and financial products. Mu Changchun said.

In addition, he should also emphasize the wide range of RMB figures In the process of issuing digital RMB, on the one hand, all commercial banks should also participate in the circulation service. On the other hand, it should also ensure that all the people, including the poor areas and the digital vulnerable groups, should be provided with inclusive and easy-to-use digital central bank currency to avoid the digital divide and financial exclusion.

We have also been developing digital RMB products suitable for the elderly and those who reject the use of smart terminals. Mu Changchun said.

Mu Changchun believes that the issuance of digital RMB is not realized by administrative coercion, but should be carried out in a market-oriented way.

We issue as much as the people need to exchange, he said. The peoples Bank of China will not stop the supply of paper money as long as the people have the demand to use it. I personally feel that in the foreseeable future, digital RMB and paper money will coexist for a long time.

The full text of Mu Changchuns speech is attached

Mu Changchun: Dear Chairman Shang, President Xiao and president Zhang, good afternoon! Thank you very much for the invitation of the conference. It is my honor to share some of our research results here.

In September, Mr Fan Yi published an analysis article on the policy implications of the positioning of the digital RMB M0, which has a large amount of information. Today, I will understand the key points in the article and report to leaders and friends for sharing.

The first is to sort out the concept of digital RMB mentioned in the article. Digital RMB is a legal tender in digital form issued by the peoples Bank of China. It is operated by the designated operating agencies and converted to the public. Based on the generalized account system, it supports the loose coupling function of bank accounts and is equivalent to banknotes and coins. It has value characteristics and legal compensation, and supports controllable anonymity.

This concept is relatively technical. It will take some time to make these concepts clear. Today, time is limited. Id like to pick out two points

One is that digital RMB is the legal tender in digital form; the other is that it is equivalent to paper money and coins. In other words, digital RMB is mainly positioned at M0, that is, cash and coins in circulation.

1u3001 Digital RMB is the legal currency in digital form issued by the peoples Bank of China.

In the early stage of human history, payment depended on barter. After that, some rare and precious items that were easy to preserve and carry, such as shells, became general equivalents. Later, with the progress of smelting technology, metal currencies such as copper, iron, gold and silver began to appear. After the maturity of printing technology, paper-based banknotes appeared. Later, with the support of national credit, the legal tender issued by the central bank gradually replaced bank notes, completing the evolution from metal currency to paper money and legal tender. Therefore, our current digital RMB is not a new currency. In fact, it is the legal tender in digital form, that is to say, the digital form of RMB.

Recently, we heard a rumor that some traders in Shenzhens second-hand housing transactions were forced to accept digital RMB, and they were not allowed to exchange gold or foreign currencies. First of all, lets talk about our pilot project in Shenzhen. What you heard is that we issued digital RMB red packets in Luohu District to promote consumption, and there was no pilot second-hand housing scene. In addition, digital RMB is equivalent to paper money and coins. Digital RMB can be bought for anything that paper money can buy. For foreign currency that paper money can exchange, digital RMB can also be exchanged, so dont worry.

2u3001 The positioning of digital RMB M0 is determined by the development situation and law of currency.

With the development of technology and the promotion of demand, the form of legal tender gradually evolves from physical form to digital form. At the same time, in history, every technological progress will give birth to the game between private currency and official currency. The issuers of folk currency decide the weight, quality and standard of coins themselves, which increases the social cost. In recent years, global stable currencies such as bitcoin and Libra are also trying to play the role of currency, but whether they can play the role of currency is controversial. Thus, a new round of game between private coinage and legal tender has begun. These encrypted assets, which process payment transactions in a decentralized and local way, will erode the countrys currency sovereignty. For us, the pressure of digitizing cash is increasing.

At the same time, mobile payment has now become a financial infrastructure of systemic importance. Once any risk, such as financial risk or operational risk, will have a great impact on peoples lives and threaten financial stability. In addition, although the current use of cash has declined, the absolute amount is still increasing. This shows that the digital supply of fiat money in retail sector has not kept up with the change of demand, especially in remote mountainous areas and poor areas, the coverage of financial services is insufficient, and the public is more dependent on cash. For some digital vulnerable groups, such as the elderly who cant use smart phones and those who reject the use of smart terminals, the development of e-payment has not improved financial inclusiveness, but financial exclusion has emerged. Money is originally a public product and serves all social groups. We should provide all people in poor areas and vulnerable groups with inclusive, easy-to-use and digital central bank currency. Therefore, the historical trend of money development and the change of demand require us to do something on the supply side, and use new technologies to digitize M0, so as to provide a universal basic currency for the development of digital economy.

In this process, digital RMB should adhere to the central bank supervision. The central bank is the National Bank, the issuing bank and the Bank of the bank. From this definition, we can see that the emergence of the central bank is not imposed on the market by the government, but a product driven by the market. Historically, with the development of the financial industry, all parties in the market have found that only centralized management of the seigniorage reserve of the commercial bank system and the realization of centralized clearing and settlement arrangement can reduce the cost of clearing and settlement and avoid periodic financial risks. This demand has promoted the birth of modern central banks. The central bank monopolizes the issuance of currency, which is also the result of market demand for reducing transaction costs.

Therefore, the centralized management of digital RMB is conducive to resist the erosion of encrypted assets and global stable currency, and prevent the loss of currency issuance right. In addition, the centralized management of digital RMB can realize payment as settlement, and improve the turnover rate of merchants funds. It can solve the liquidity problems of small and medium-sized enterprises, including the financing difficulty and high financing cost mentioned by Chairman Shang just now, and improve the implementation efficiency of monetary policy. At the same time, it also helps to break down the payment barrier and market segmentation of retail, and avoid market distortion. Under the centralized management system, the peoples Bank of China can prevent and combat money laundering, terrorist financing and other illegal and criminal acts, and effectively maintain financial stability.

In the process of adhering to the central management of the central bank, the following aspects should be achieved:

First, the overall management of digital RMB issuance quota, to ensure 100% preparation, to prevent over issuance.

Second, it is necessary to formulate unified business standards, technical specifications, security standards and application standards, so as to realize the interconnection between designated operating agencies and avoid payment barriers.

The third is to manage the digital RMB information as a whole. We should manage the digital RMB wallet as a whole, unify the recognition system of digital RMB, and effectively reduce the cost of anti-counterfeiting. According to the principle of double-layer operation, the central bank and the designated operating agencies will jointly develop the wallet ecological platform by means of co construction and sharing. At the same time, we should realize their own visual recognition and feature functions. We have found counterfeit digital RMB wallets on the market. Therefore, as in the paper money era, the peoples Bank of China is still facing the problem of anti-counterfeiting and anti-counterfeiting. In the era of paper money, the cost of anti-counterfeiting and anti-counterfeiting is high. In the era of digital RMB, we need to reduce the cost of anti-counterfeiting, which requires us to coordinate the construction of digital RMB wallet ecology, so that people can identify it. At the same time, on the other hand, operators should develop their own features to provide more abundant payment and financial products.

Fourth, it is necessary to coordinate the construction of digital RMB issuing infrastructure, realize the interconnection of cross operating agencies, and ensure that there will be no payment barriers.

These are the key points of centralized management.

As I said just now, digital RMB is a public product. In this process, we should adhere to the positioning of M0 and public goods. On the one hand, interest is not calculated and paid for digital RMB, because it is M0, and there is no interest for paper money, so there is no interest for digital RMB. On the other hand, digital RMB is non-profit and pursues the maximization of social efficiency and welfare. Therefore, the peoples Bank of China establishes a free digital RMB value transfer system and financial infrastructure, does not charge circulation fees from the issuing layer, and commercial banks do not charge customers service fees for the withdrawal and redemption of digital RMB, which is conducive to the implementation of the Central Committee of the Communist Party of China and the State Council The decision-making and deployment of tax reduction and fee reduction will reduce the burden of the real economy, optimize the business environment, and further stimulate market vitality. At the same time, in order to mobilize the enthusiasm of the participants and sustainable operation, we should refer to the current cash arrangements, allocate certain expenses, and establish a reasonable and effective incentive mechanism.

You will also ask, if you say that the central bank does not charge the issuing layer fees, and the commercial banks do not charge the customers withdrawal fees, how to solve this problem? Charge or not? How much do you charge if you want? We said that this issue should be decided by both sides through a market-oriented mechanism.

M0 positioning also has a policy meaning - it should be the function of commercial banks to exchange digital RMB. It is the requirement of laws and regulations that commercial banks provide the service of exchanging digital RMB. The Regulations on the administration of RMB gives financial institutions handling RMB deposits and withdrawals the right to cooperate with the peoples Bank of China in the management of RMB circulation. Therefore, commercial banks have the legal basis for providing exchange and circulation services for digital RMB. At the same time, for non bank payment institutions, Article 9 of the administrative measures for online payment also stipulates that non bank payment institutions shall not operate currency exchange and cash deposit and withdrawal in disguised form, and do not have the institutional basis for providing exchange services for M0 oriented digital RMB. Therefore, according to the requirements of the current legal system, only commercial banks can provide services for people to exchange digital RMB. It should be noted that I emphasize the exchange service here. The circulation service can still be undertaken by the third-party payment institutions and other commercial banks.

In addition, the dual mode of central bank and commercial bank is generally adopted in the cash issuance of various countries. The central bank is the supplier of basic money and the regulator of currency. Commercial banks provide cash deposit and withdrawal services for the public, so this is the best international practice. In this process, we should choose commercial banks with strong strength in capital and technology as designated institutions to take the lead in providing digital RMB exchange services. These commercial banks can make full use of the market power and realize the survival of the fittest because of their mature infrastructure, perfect system and sufficient talent reserve. These commercial banks have rich experience in retail business and risk control system, which can effectively prevent operational risks and enhance public confidence in holding and using digital RMB. Commercial banks can also give full play to the intermediary role of commercial banks to provide more direct and efficient channels for the transmission of digital currency.

In order to construct the ecology of digital RMB, it is necessary to explore the cooperation mode between designated operating agencies and other commercial banks and other commercial institutions. It needs to be emphasized that digital RMB should be widely available. For the requirement of wide availability, in the physical cash flow, all commercial banks can provide RMB services to the public, and all the public can easily obtain and use cash. In the process of issuing digital RMB, on the one hand, all commercial banks should also participate in the circulation service, on the other hand, they should also ensure that all the people, including the poor areas and the digital vulnerable groups, should be provided with inclusive and easy-to-use digital central bank currency to avoid the digital divide and financial exclusion. We have also been developing digital RMB products suitable for the elderly and those who reject the use of smart terminals.

In addition, the issuance of digital RMB is not realized by administrative coercion, but should be carried out in a market-oriented way, that is to say, we issue as much as the people need to exchange. In addition, the peoples Bank of China will not stop the supply of paper money as long as the people have the demand to use paper money. I personally feel that in the foreseeable future, digital RMB and paper money will coexist for a long time.

On the basis of clarifying the relationship between responsibilities and rights, commercial banks and other commercial banks, as well as other commercial institutions such as third-party payment institutions, jointly provide digital RMB circulation services to the public. The exchange service is done by the designated commercial bank, and the circulation service is completed by everyone. Specifically, the designated commercial bank opens different types of digital RMB wallets for exchange service according to the recognition strength of customer information. At the same time, these banks provide circulation services together with other commercial institutions, and are responsible for the management of retail links, including payment product design and innovation, scene expansion, market promotion, system development, business processing and operation and maintenance services.

We are also discussing the specific business model with all parties. In this process, we should ensure that the interests of small banks and small institutions can not be damaged by such cooperation, so we need to find a win-win business model or business model. It also requires you to work with us to achieve this goal.

Heres a lot to say, many people will have this question: what is the difference between WeChat and Alipay in the end and what is the digital Renminbi? We say that WeChat and Alipay and digital Renminbi are not in one dimension. WeChat and Alipay are financial infrastructure and wallet, while digital renminbi is the payment tool and the content of the wallet. In the electronic payment scenario, WeChat and Alipay have money in the commercial banks deposit. After the issuance of the digital RMB, they can still pay with WeChat Alipay, but only the contents of the wallet increase the central banks currency. At the same time, the commercial banks of Tencent and ants belong to the operation organization, so there is no competition relationship with the digital RMB.

Here we need to emphasize that in the whole process of digital RMB ecological construction, we must maintain fair competition, ensure that the market plays a decisive role in resource allocation, and fully mobilize the enthusiasm and creativity of all parties in the market. The issuance and circulation of digital RMB involves all aspects of the society. It is never the responsibility of the peoples Bank of China alone, nor is it something that a certain institution can accomplish on its own. It needs the joint efforts of the whole society, so we have been carrying out research and development together with all sectors of the society in accordance with the principle of two-tier operation, and we have also made some achievements.

Today, I would like to welcome all sectors of society to contribute to the pilot project of digital RMB research and development, and to build a digital RMB ecology together.

Thank you!

Source: surging news editor: Wang Fengzhi_ NT2541