Recently, the central bank's upcoming digital currency, both in the financial sector or in the capital markets, the central bank monetary figures this topic are fired very hot. The central bank research and development of digital currency called the DCEP (DC, DigitalCurrency, is a digital currency; EP, ElectronicPayment, electronic payment), both monetary digital content, but also has the connotation of payment instruments.
For the world's first national official on behalf of the central bank issued digital currency, we should look at how, after the introduction of the future and what possible risks, challenges and opportunities which have the potential of existing payment and settlement as well as the financial sector, these issues are it is worth thinking and research, we talk about some of my personal thoughts and questions.
From some official statements and speeches of view, there are these information:
First of all, the future is digital currency using double (two-tier) is operated by the operating agencies such as commercial banks to the central bank by 100% full payment of reserves, commercial banks will exchange the digital currency with the public's cash. Bank of digital currency held by the public is still central bank liabilities, credit guarantee by the central bank, with unlimited method of compensation.
Secondly, without changing the existing two yuan account system, to maintain the existing monetary policy transmission mode.
Third, China's central bank at this stage should focus on the design of digital currency M0 alternative, instead of M1, M2 instead.
Fourth, the central bank kept monetary figures and main features of the property cash to meet the demand for portability and anonymity would be the best tool for the cash alternative.
Fifth, in order to maintain the legal status of unlimited compensation law, the central bank should not assume digital currency other social and administrative functions in addition to the four functions of money due (measure of value, medium of circulation, means of payment and store of value), and such as smart contract applications.
Sixth, the central bank may be through full market competition among commercial banks, not the default route technology, system optimization and development.
These external information from the above, we can see a few key words: double operations, liquidating unlimited Act, the existing system and the policy remains unchanged, loosely coupled account, pay attention to alternative M0, anonymity, monetary functions, without prejudging set up technical route.
From a normal user point of view, the central bank should be more similar to digital currency cash. Then such a product which may have an impact on the existing people's lives, what opportunities it will bring?
As the central bank of digital currency has unlimited compensation law, then as an ordinary business, you can not refuse to accept DCEP, just can not refuse to accept the yuan as cash. From this we can see now, like micro-channel Alipay their main push brush face payment, if the micro-letters, can not be used to pay treasure, but for the central bank to digital currency, as long as you can use the local e-payments, they must accept the central bank digital currency. From this point it means that the line on the cash register business have to have the relevant equipment to accept the digital currency the central bank acquirers, and merchants associated with this will inevitably bring about the end of the cashier a reshuffle.
From the perspective of anonymity, the daily life of the people there are still many anonymous payment needs. Existing payment instruments, such as bank cards, micro-channel, Alipay, cloud lightning pay, are traditional bank account system firmly bound, are mandatory for real-name authentication. The use of digital currency or cash bills, to meet the needs of anonymity. Itself as money is concerned, is anonymous, so the final decision is actually their anonymity anonymity wallet to store digital currency. Figures from the central bank monetary point of view, is bound to consider such as the use of purse grading system corresponding to the limit, both anonymous and anti-money laundering requirements, in addition, for pure anonymous purse address, the central bank needs to have anti-money laundering based on tracking transaction history and risk characteristics ability, for example, some of the money laundering network features and characteristics such as transaction BC. In addition, the central bank's cross-border transactions and foreign exchange control also made high demands, because the bill may carry restrictions, accounts in domestic commercial banks, while the digital wallet is ubiquitous across the border.
Information from public view, in fact, I was most looking forward to the store and trade considerations digital currency. First, the traditional cash stored in the bank, is to deliver cash to the bank, the bank account balance to reflect the payment of interest and form, and payment transactions are based account system. Let's look at means of payment, one is similar to the payment account system based on existing bank, but such experiences are not new, the other is similar to the existing banknotes mode, taking into account the cash notes actually have double offline features, and digital currency to have this feature, then, need to consider many issues. Since the digital wallet is actually a bunch of money and data, if not validated and recorded by the online way, it would be difficult to solve the classic "double" problem, double flowers problems if the block-chain solutions, waiting for the whole repeatedly confirmed chains, would affect actual trading convenience, parties to the transaction can not wait for a lengthy transaction confirmation process, and then delivered it. From the point of view of savings banks may follow the original monetary management, turned into savings deposits are managed, now take digital currency cash withdrawal through ATM or mobile phone APP similar way.
The final step is the central bank of digital currency wallet if using block chain management technology and achieve interoperability each row, then, means that all transactions are in the chain, will inevitably lead to a revolution in the entire financial system, a lot of intermediate financial institutions such as commercial banks and so on, it will become more tasteless, but the central bank can directly participate in the business as the main business activities, while commercial banks may degenerate to recommend financial institutions and commercial lending services, future competition will be more commercial banks to develop differentiated direction .
As the central bank of DCEP no technical route, so eventually see which agency programs are able to stand out in the market competition, which will be the financial sector and the payments industry a comprehensive reshuffle, disruptive change will bring some industry . Compared to the use of so-called basket of currencies storage, digital version of the actual dollar currency LIBRA, how renminbi DCEP final results for the internationalization of the RMB is also very critical impact.
In any case, I believe that the central bank DCEP digital currency is a major current market opportunities point, as the industry parties involved, and the need to follow up on the layout, the future certainly worth the wait.