Digital RMB mainly for individuals:
The digital renminbi is the digitization of the legal tender issued by the central bank. It is supported by national credit, and the right to issue it belongs to the state. Digital RMB, or Digital Currency Electronic Payment (DC/EP), is a legal digital currency developed and issued by the People's Bank of China (PBOC).
The digital yuan is different from traditional electronic payment methods, such as bank cards or mobile payment apps. The digital renminbi completely simulates the transaction method of cash, and its value is stable. Each unit of digital renminbi is equal to one unit of cash renminbi, and digital renminbi is equivalent to a cash-based payment voucher. Cash has the characteristics of no interest, no handling fee, and controllable anonymity; the design of digital renminbi also takes these characteristics into consideration. Users can set up wallets of different levels according to their identification, so as to control the transaction restrictions of wallets.
In real life, cash is mostly used by individual users or small and micro businesses, and the scenarios designed for digital renminbi are more for individuals.
The digital yuan marks a shift from traditional physical currency to an all-digital currency. The digital renminbi is a new form of currency that does not depend on physical currency. In the process of digitizing money, the role of the central bank becomes even more important. The People's Bank of China is not only responsible for issuing digital renminbi, but also supervising its circulation and use. The digital renminbi can conduct peer-to-peer transactions without going through an intermediary agency, which can reduce transaction time and costs; the digital renminbi has the potential to improve financial inclusion and allow people who cannot be covered by the traditional banking system to access financial services. Mobile phones or other Internet-connected devices allow people who would otherwise not be able to open bank accounts in the traditional system to conduct financial transactions.
The digital renminbi is not only a digital currency, but also an exploration of currency digitization, which centrally records the main information of transactions, such as transaction parties, dates, amounts, etc. In order to satisfy the anonymity feature, only the transaction party and the central bank know the transaction information of digital currency, but this information does not necessarily include the detailed content of each transaction, such as the details of purchased goods and other background information of the transaction.
The launch of the digital renminbi will likely have a profound impact on the global payment system, monetary policy and financial system. Of course, there are many challenges and problems in the global sovereign digital currency in the future, including technical issues, privacy protection issues, cross-border payment issues, etc., all of which need to be resolved in further research and practice.
Students who are interested in digital renminbi can refer to the following article:
Digital Economy Map (5): Digital RMB
Digital Credentials for Business:
Traditional corporate payment methods include: cash payments, bank transfers, check payments, acceptances and credit and debit card payments. However, these payment methods can only meet part of the requirements in terms of payment flexibility, efficiency, liquidity, security, cost and real-time tracking of transaction status. Although bank transfers can achieve high timeliness, they cannot feed back the dynamic changes in the payment certainty of enterprises in different links of the transaction process; for example, in the process from contract, order, delivery, acceptance, settlement to payment, the certainty is gradually improved.
Electronic bond certificates, usually created and issued on a multi-party trusted system, represent some kind of debt or future income. These bond certificates can be designed to represent various types of debt or assets, such as corporate accounts receivable, invoices, warehouse receipts, etc. During the generation and transaction of electronic bond certificates, it is often necessary to digitize a large number of transaction-related materials, such as contract agreements, ERP orders, invoices, transportation documents, acceptance documents, logistics information, etc.; these information serve as a digital description of the transaction.
The process of companies using electronic bond certificates to circulate upstream and downstream in the supply chain is essentially a process of deep digitization of trade finance.
1. Representation and transfer of value: Just as money represents a certain value in the economy and can be used to purchase goods and services, electronic bond certificates represent a specific value in supply chain finance, which may be goods, services or future income . Businesses can transfer value from one party to another by trading these electronic bond certificates. This liquidity allows businesses to transfer these credentials from one party to another according to their needs and expectations. Changes in the value of electronic bonds can also feed back the differences in the cognition of information by different stakeholders, and finally reach a consensus to price "uncertainty" reasonably.
2. Promote the efficiency and transparency of transactions: the digital nature of electronic bond certificates allows these transactions to be carried out in real time, and all transaction records and transaction backgrounds can be tracked and verified. This increases the efficiency and transparency of transactions, thereby reducing transaction costs and risks.
In this process, electronic bond certificates and accompanying information play a role similar to currency digitization, promoting the efficiency and transparency of transactions by transmitting the credit of enterprises.
Web3.0 and currency digitization
The credit of enterprises and individuals is essentially a digital description of historical transactions and behaviors. A person who is used to paying his debts on time may continue to do so in the future. An enterprise that treats people with integrity may still follow this principle in the future. In the past, various financial institutions gave credit ratings based on their own models, but such a digital portrait of credit is more like a highly abstract panorama, lacking details of history and process.
In addition to character and credit, whether individuals and companies will be able to repay debts in the future requires more information, such as age and family structure, mortgage and guaranteed assets, industry attributes, etc. More important information also comes from the insights and execution capabilities of each transaction, thus ensuring long-term positive cash flow for individuals and businesses.
Transaction digitization and currency digitization are more like a vivid documentary, which vividly presents the past behavior of a person or a company, reflecting whether the loan is repaid on time, whether the contract is abided by, whether it has excellent business ethics, and the real operation of the company , as well as the background, motivation, decision-making and execution process of each transaction. Sufficient records are left for each transaction, and this historical record is the cornerstone of credit construction. Financial institutions can make more accurate decisions about future investment behaviors based on these data.
If you want to outline a clearer definition for Web3.0, it is to generate a part of the digital historical chronicle without omission through the deep digitization of transactions and currencies; this chronicle is like a beacon, illuminating the future of transactions. , leading us to a new era of smarter and more efficient economic transactions.
