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Digital RMB pilot “expansion” and “stylish” renovation

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Digital RMB passive visual card.Xinhua News Agency

“Capacity expansion” in the pilot areas, expansion of the “whitelist” population, and trial linkages between pilots… The recent digital renminbi testing activities have attracted attention. At present, the digital renminbi has formed a pattern of “ten places and one scene”. With the implementation of a large number of pilot scenarios, how is the use and promotion of digital renminbi? What changes will it bring to your payment life? 1 The “10+1” pattern has taken shape Digital RMB “Flower” Refurbishment “I was envious of the wave after wave of experience activities in the pilot area before. I didn’t expect that in a blink of an eye I would be able to use digital renminbi to pay at the hospital.” Talking about the experience of using digital renminbi to pay at the window of Shanghai Tongren Hospital, Ms. Cover your excitement. By October 2020, six pilot areas of Shanghai, Hainan, Changsha, Xi’an, Qingdao and Dalian will be added to the digital RMB. In addition to the previous pilot areas such as Shenzhen, Suzhou, Xiong’an New District, Chengdu, and the Beijing Winter Olympics, the digital RMB pilot has formed a “10+1” pattern. With the expansion of the pilot area, the number of people who test digital renminbi has also grown substantially. Shenzhen launched a round of exclusive discounts for digital renminbi consumption from April 10 to 23, and the test population was expanded by another 500,000. In pilot areas such as Beijing and Shanghai, major state-owned commercial banks participating in digital renminbi research and development are actively promoting digital renminbi wallets to customers, and more and more experienced customers have entered the “whitelist” management. At the same time, the digital renminbi “flowering method” is constantly being renovated: from “sending red envelopes” to full consumption reduction, from offline to online, from mobile apps “scanning” to video cards and other hard wallets “touching” …The application scenarios of digital renminbi gradually cover multiple fields such as life payment, catering services, transportation, shopping and consumption, and government services. “So far, the digital renminbi pilot program has been quite successful.” Li Bo, deputy governor of the People’s Bank of China, said at the Boao Forum for Asia 2021 annual meeting that he is considering allowing more cities to conduct pilot programs to cover more usage scenarios and further strengthen Ecosystem construction. Recently, new event news came from the digital renminbi pilot program: in the “Five-five Shopping Festival” series of activities jointly held in Suzhou and Shanghai, digital renminbi red envelopes will realize cross-regional payments. This is the first time in a pilot activity. Prior to this, most of the digital RMB red envelopes were distributed by the local government and used by local merchants. However, the digital renminbi recharged by experiencers can be used in pilot areas across the country. “Like cash, one of the characteristics of digital renminbi is legal repayment.” A relevant person from the central bank introduced that as long as merchants have the conditions for acceptance, digital renminbi wallets opened in any pilot area can be used in other pilot areas. . 2

Smooth and stable payment experience

Fund settlement is more efficient

In order to enjoy the digital renminbi consumption discounts recently launched in Shenzhen, Shenzhen Minpeng specially recharged her digital renminbi wallet and enjoyed a full discount of “200 yuan minus 40 yuan” at Shenzhen Luohu Bookstore. “Currently using the digital RMB App to check out is similar to other mobile payment methods, simple and convenient.” Ms. Peng said.

Yi Zhaoxia, the sales center manager of Shenzhen Luohu Bookstore, told reporters that the digital RMB payment experience is similar to that of existing mobile phones, and users accept it quickly and experience smoothly. “Especially when there is no network or the network is not good, digital renminbi can be used for offline payment, which improves the convenience and stability of transactions.”

Smoothness is not only reflected in the user’s payment experience, but also brings new feelings to merchant settlement. Jiang Yan, director of brand management of the marketing department of China Resources Vanguard (Holdings) Co., Ltd., told reporters, “When consumers use bank cards for consumption, the fastest way to deposit funds is the next day. Digital RMB can be credited to the account in real time, effectively improving the efficiency of capital turnover.”

The reporter learned that third-party payments such as WeChat and Alipay also need to rely on the bank account system to complete settlement and final confirmation through the central bank’s payment infrastructure, so it takes a long time for funds to arrive in the account. The so-called “real-time payment” of payment institutions is often achieved through “funding”, which contains hidden risks such as misappropriation of funds and credit default.

Experts said that digital renminbi does not rely on bank accounts for fund transfers, and does not require final confirmation of settlement through the payment system, reducing the credit risk and liquidity risk of clearing and settlement. For operating institutions, the reconciliation process is greatly simplified; for merchants, payment is settlement, which greatly improves the efficiency of fund settlement.

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No change to the existing payment pattern

Promote cooperation internally and externally

At the beginning of the pilot, there was a view that digital renminbi wallets will replace e-wallets such as Alipay and WeChat Pay. However, with the steady progress of the pilot program, people have found that multiple payment methods can coexist, and the digital renminbi has not changed the competitive landscape of the existing payment service market.

Judging from the previous pilot activities, many users can choose to use third-party payment methods to pay for the part that exceeds the amount of the digital RMB red envelope. In the upcoming second “Five-five Shopping Festival” in Shanghai, pilot users in Shanghai may be able to use digital renminbi through Alipay for offline and online consumption.

According to experts, digital renminbi only converts the currency of users’ electronic wallets from commercial bank deposit currency to central bank digital currency, while electronic wallets such as Alipay and WeChat Pay will continue to play their original role as wallet carriers.

While actively promoting internal cooperation, the People’s Bank of China is also actively exploring a feasible path for the central bank’s digital currency to improve the cross-border payment system.

Recently, the Digital Currency Research Institute of the People’s Bank of China, the Hong Kong Monetary Authority, the Central Bank of Thailand, and the Central Bank of the United Arab Emirates jointly launched a multilateral central bank digital currency bridge research project to explore the application of central bank digital currency in cross-border payments.

Li Bo said that the current development focus of the digital renminbi is to promote domestic use. The internationalization of the renminbi is a natural process, and it is necessary to work with international partners to find cross-border payment solutions.

According to Xinhua News Agency

●The current focus of the development of digital renminbi is to promote domestic use. The internationalization of the renminbi is a natural process, and it is necessary to work with international partners to find cross-border payment solutions.

●Digital RMB does not rely on bank accounts for fund transfers. For operating institutions, the reconciliation process is greatly simplified; for merchants, payment is settlement, which greatly improves the efficiency of fund settlement.

●At the beginning of the pilot, there was a view that digital renminbi wallets will replace e-wallets such as Alipay and WeChat Pay. In fact, electronic wallets such as Alipay and WeChat Pay will continue to play their original role as wallet carriers.