Explaining the digital renminbi: starting with alternative cash, it can still be used without the Internet

　　Recently, Fan Yifei, deputy governor of the People's Bank of China, published an article "Analysis on the Policy Implications of the Positioning of Digital RMB M0", explaining the digital RMB in detail.
　　The article pointed out that the digital renminbi is a digital form of legal tender issued by the People's Bank of China. It is operated by designated operating agencies and exchanged with the public. It is equivalent to banknotes and coins.
　　M0 refers to the cash in circulation. Simply put, the digital renminbi will start from replacing cash in the hands of ordinary people. As for others, the money in bank accounts, such as resident deposits and corporate deposits, originally exists in digital form, so there is no need for repeated construction.
　　"From the perspective of M0's fee system, the digital renminbi is a public product provided by the central bank to the public . No interest is calculated and the central bank does not charge for services such as exchange and circulation." Fan Yifei pointed out that the central bank has established a free digital renminbi value transfer system and financial infrastructure . No exchange and circulation service fees are charged to the issuing layer, and commercial banks do not charge individual customers for redemption and redemption service fees of digital RMB.
　　In this regard, chief researcher with the financial Dong Ximiao move to Economic Daily News reporter Biao Shi , digital renminbi is an alternative to cash, and cash is no interest, so there is no digital RMB interest.
　　From the perspective of user experience, the experience of mobile payment and digital RMB payment may be similar . But there is one obvious difference-mobile payment must be connected to the network, and digital renminbi can still be used without the network.
　　When using digital renminbi to pay, digital renminbi is directly spent, just like cash. Moreover, the recipient cannot refuse to accept the digital RMB. Dong Ximiao stated that in accordance with the provisions of the renminbi law, all public and private debts within the territory of our country shall be paid in digital renminbi , and any unit or individual shall not refuse to accept it if the conditions are met.
　　Digital renminbi can also effectively prevent criminal activities such as money laundering. Fan Yifei pointed out that the digital renminbi adopts a controllable anonymity mechanism. The People’s Bank of China has full information and can use big data, artificial intelligence and other technologies to analyze transaction data and capital flow , prevent and combat money laundering, terrorist financing and tax evasion and other illegal and criminal activities, and effectively maintain financial stability. .
　　At the same time, the use of digital renminbi must comply with laws and regulations such as large cash management, anti-money laundering, and anti-terrorist financing. For example, in accordance with the People’s Bank of China’s “Notice on the Implementation of Large-Value Cash Management Pilots”, in order to cooperate with anti-money laundering related work , large-value deposits and withdrawals should also be registered for digital RMB in pilot areas, and relevant institutions should deal with large-value and suspicious transactions in digital RMB. Report to the central bank.
　　Up to now , the central bank is steadily advancing the digital renminbi research and development pilot work, and there is no timetable for its launch. On August 25, Sun Guofeng, Director of the Monetary Policy Department of the People’s Bank of China, stated at the State Council’s regular policy briefing that the current digital RMB research and development work is following the principles of “steady , safe, controllable, innovative and practical”. Xiongan, Chengdu, and future Winter Olympics scenes conduct internal closed pilot tests to test theoretical reliability, system stability, function availability, process convenience, scene applicability and risk controllability. Sun Guofeng said that the digital renminbi is still in the internal closed pilot test stage , and there is no timetable for its official launch.