Recently, an internal test picture of a digital currency wallet was exposed. The People’s Bank of China began to study legal digital currency in 2014, and finally unveiled the mystery. From the screenshot of the digital currency wallet flowing out from the Internet, the main functions are basically similar to the daily payment and management functions of the bank’s electronic account. .

According to CCTV reports, the relevant person in charge of the Digital Currency Research Institute of the People’s Bank of China said recently that the current research and development of digital RMB is being steadily advanced. First, internal closed pilot tests will be conducted in Shenzhen, Suzhou, Xiong’an New District, Chengdu and the future Winter Olympics scene. In order to continuously optimize and improve functions. Simply put, the central bank digital currency is a digital alternative to paper money. It has an English name: DC / EP (Digital Currency Electronic Payment), that is, digital currency and electronic payment tools. Zhao Xijun, deputy dean of the School of Finance and Economics of Renmin University of China, said that digital currency can be circulated like paper money, and its positioning is to replace cash, which is legal currency like cash. It is endorsed by national credit and has unlimited legal compensation. No one can refuse to accept.

Dong Ximiao, a special researcher at the National Finance and Development Laboratory, said that digital currency can open bank accounts or payment accounts. As long as you have a digital currency wallet, you can use central bank digital currency. Not only that, the central bank’s digital currency uses the latest dual offline technology, even in the absence of mobile phone signals, it can still be used. Dong Ximiao said that it can be used conveniently without an Internet connection. As long as a mobile phone equipped with a digital currency wallet is touched together, it can easily complete the transfer or payment. In other words, as long as the phone has power, even if the entire network is down, payment can be achieved. This is more advantageous than WeChat Pay and Alipay. In addition, digital currency can achieve controllable anonymity, which means that it can meet the needs of anonymous payment. Alipay and WeChat payment are tightly bound to the traditional bank account system, and are all real-name payments, which cannot meet the demand for anonymity. At the same time, the digital currency issued by the central bank starts with the replacement of banknotes and coins in circulation. That is to say, assuming that the current currency is 100 yuan, the central bank digital currency will replace the equivalent of 100 yuan.

Xu Yuan, a senior researcher at the Peking University Digital Finance Research Center, said that the new digital currency and our previous paper currency are exchanged one to one. Now commercial banks must exchange the previous currency for digital currency without increasing the total amount This is the first step and does not increase the total amount during the pilot.
It is understood that in order to ensure that the central bank’s digital currency is not oversold, commercial institutions pay 100% of the reserve to the central bank in full. In other words, at the time of issuance, the People’s Bank of China will first exchange the digital currency to banks or other operating agencies, and then these agencies will exchange them to the public.
In addition, considering that the previous digital currency is limited to pilots, it will not be issued in large quantities and fully promoted in the short term, and the currency circulation rate will also remain at a normal level. Therefore, digital currencies will not cause inflation.
However, the person in charge of the People’s Bank Digital Currency Research Institute emphasized that the current online DC / EP information is the test content in the process of technology research and development, and does not mean that the digital RMB is officially issued.
The current closed testing of digital RMB will not affect the commercial operation of listed institutions, nor will it affect the RMB issuance and circulation system, financial market and social economy beyond the testing environment.