What is the relationship between digital renminbi and stable currency?
At 20 o'clock today, the Suzhou digital renminbi pilot project will be announced soon. At that time, 100,000 Suzhou citizens who won the lottery will experience the use of 200 yuan digital renminbi red envelopes.
Compared with the one in Shenzhen, what is the difference between the Suzhou pilot this time?
1. Added online payment;
2. Application of offline wallet and offline payment;
3. Postal Savings Bank and Bank of Communications have been added;
4. Some merchants can use the "Touch" function.
Although large-scale trials have been carried out in two pilot cities, most people have little feeling for the change of digital renminbi. Today I want to talk about the topic of digital renminbi and the great significance of digital renminbi in China.
First, let's take a look at the introduction of the digital renminbi:
In December 2020, digital renminbi will be distributed to 100,000 pre-registered people in the form of red envelopes in Suzhou. The Hong Kong Monetary Authority is working with the Central Bank's Digital Currency Research Institute to study the technical testing of using digital renminbi for cross-border payments and make corresponding technical preparations.
Let's take a look at the development history of the digital renminbi:
In 2014, a dedicated legal digital currency research group was established to discuss the required regulatory framework or national digital currency.
In 2015, the central bank's prototype plan for issuing digital currency completed two rounds of revisions.
In 2016, the prototype research and development of digital bill trading platform based on blockchain and digital currency was launched.
In 2017, the Central Bank Digital Currency Research Institute was officially established.
In 2018, the Central Bank Digital Currency Research Institute established "Shenzhen Financial Technology Co., Ltd."
In 2019, Mu Changchun, deputy director of the Payment and Settlement Department of the People's Bank of China, stated at the third China Finance Forty Forum that the central bank's digital currency is "ready to come out."
In 2020, the digital renminbi will open the "4+1""Closed beta. In October, the digital renminbi was distributed to 50,000 pre-registered people in the form of red envelopes in Luohu, Shenzhen.
In November 2020, according to the news, in addition to Xiongan, Suzhou, Chengdu, Shenzhen and the Winter Olympic Games, the digital renminbi pilot will also add six new pilots in Shanghai, Changsha, Hainan, Qingdao, Dalian, and Xi'an.
In December 2020, digital renminbi will be distributed to 100,000 pre-registered people in the form of red envelopes in Suzhou. The Hong Kong Monetary Authority is working with the Central Bank's Digital Currency Research Institute to study the technical testing of using digital renminbi for cross-border payments and make corresponding technical preparations.
You can also see all kinds of other related content. I will not continue to explain these for you here. The purpose of writing this article is to show you the role of digital renminbi from a personal perspective.
First of all, we can see from the concept that the digital renminbi only borrows from the concept of blockchain and focuses on the payment of M0, not the digital currency we use. From the concept of blockchain, it may be more stable Currency, because its value is only affected by the international exchange rate; in terms of use, it is more realistic and can be used in people's daily life. The functions of shopping, payment and so on make its people's livelihood more powerful.
If you compare it with the functions of existing mainstream stablecoins, it can be divided into the following differences (stablecoins are not limited to USDT):
1. The digital renminbi is under the control of the state, and the stable currency is under the control of the project party;
2. The exchange rate between the digital renminbi and the existing legal currency is 1:1, and the stable currency sometimes fluctuates slightly;
3. The digital renminbi can be used directly for shopping, and the stable currency is currently only used for the exchange between digital currencies;
4. The digital renminbi supports offline payment, and the stable currency only supports offline payment with some hardware wallets;
5. The digital renminbi does not charge a transaction fee, and there will be a fee when the stable currency is withdrawn.
Based on this, there are some similarities between them, such as solving the problem of convenience and handling fees for cross-border payments, solutions with constant value, the combination of off-chain digital assets, and so on.
I think the launch of the digital renminbi is likely to be a shovel to promote China's international status. Now CBDCs such as the digital dollar and the digital euro are in preparation, and foreign countries are also solving the epidemic problem, while the second round of large-scale development is already underway domestically. It is believed that it will shock the world when it is officially launched.
But I can feel more that there may be a combination of digital renminbi and stable currency, because digital renminbi promotes the formulation of blockchain industry regulatory bills, and stable currency enables the public to have a better understanding of digital renminbi. is a mutually reinforcing relationship.
Perhaps there will be a fork in the combination of stable currency and DCEP, which will promote the overall application of the blockchain and form digital assets that truly spread to everyone.
In the future, the digital renminbi will be used in all scenarios such as cross-border payment and daily use, which will make me look forward to it even more.
