We are saying DCEP, digital currency the central bank actually have anything to do with you?
Huang Qifan pointed out, DCEP making the trading process on the account greatly reduced dependence conducive to the circulation and internationalization of the RMB.
Wen | Wang also operates | cover remote editor | Lu Xiaoming
Produced | Odaily Daily Planet (ID: o-daily)
October 28, Huang Qifan declared: People's Bank of China is likely to launch the world's first digital currency of the central bank.
Chinese financial forty Forum (CF40) Academic Consultant, China International Economic Exchange Center vice president Huang Qifan in the "collision and fusion - the digital wave reshaping the global financial ecology" First Bund Financial Summit plenary speech on digital currency to the central bank DCEP been interpreted, explained the views on the block chain, digital currency, cross-border payments and other issues.
Today we'll talk with DCEP have anything to do with you, how you can use it.
Finally, Odaily Daily Planet also counted, with the exception of China, as well as the central bank attempts or which countries issued CBDC (Bank of digital currency).
DCEP and we have to do?
How do ordinary people get DCEP?
1. What DCEP that?
On DCEP is essentially a digital payment tool. DCEP stands for Digital Currency Electronic Payment, DC refers to the digital currency, EP refers to electronic payment, namely digital currency and electronic payment instruments. Its functional properties and bill exactly the same, just a digital form.
DCEP positioning of the central bank issued a substitute bill, which is the digital version of the bill. Since the bill is DCEP alternatives, then the scene bill payment involved, DCEP principle can be achieved. For example DCEP can complete the transaction in the absence of network status.
2, DCEP what's the benefit?
Traditional paper money, coins issued, printing, return, storage part of the cost is very high, but also input costs do anti-counterfeiting technology, and circulation levels are more convenient to carry, will evolve towards a virtual currency, digital, so on the one hand and environmental protection also play a role. On the other hand is the traditional paper money, coins in circulation levels are more difficult to carry, digital currency and vice versa.
Huang Qifan pointed out, DCEP making the trading process on the account greatly reduced dependence conducive to the circulation and internationalization of the RMB. DCEP can be achieved while money creation, billing, real-time acquisition of data flow, etc., provide a useful reference for the launch, development and implementation of monetary monetary policy.
3, ordinary people how to get DCEP it?
China's central bank currency design digital double operational delivery system , rather than directly by the People's Bank of monolayer operating system to the public distribution of digital currency.
The so-called double system refers to the system run the central bank and commercial banks of the two layers, the top layer is the People's Bank of commercial banks, commercial banks or the floor below commercial organizations to the people. The specific implementation process, namely the People's Bank first digital currency exchange to commercial banks or institutions, and then convert to the public from these institutions.
Zero One Finance pointed out that commercial banks long-term direct contact with the user, is relatively central bank has a great advantage. If the central bank and commercial banks close division of labor, not only can use existing resources to mobilize the enthusiasm of commercial banks, can successfully enhance the acceptance of digital currency.
4, ordinary people how to use DCEP?
DCEP can complete the transaction in the absence of network status. Part of the interpretation that even if the phone is not networking, nudged two mobile phones, will be able to achieve transfer, that is, support for offline payments.
As you use cash, other people can not see who the money is used out. DCEP real name is based on grade level open trade size, low level of authentication can be small transactions, the amount of high certification relax, classification management to achieve a certain degree of anonymity, can protect the privacy of ordinary users. In other words, use a small, wallet only need to bind phone number; if you want to increase the transfer limits, to conduct KYC certification. Such as the use of micro channel change, up to more than a certain amount, there is an additional requirement.
What is the difference DCEP and Alipay micro letter?
DCEP and Alipay and micro letter What difference does it make? Alipay or micro-channel digital pay bill is it?
M0, it means the same as using cash, do not need to bind bank card, you can pay directly point to point, just as easy to send a message.
You can first understand M0, M1 and M2 concept:
M0, refers to the cash in circulation, that is, the central bank issued paper currency.
M1, the narrow money refers to as M0 and non-financial corporations demand deposits.
M2, refers to broad money, M1 and to non-financial companies time deposits, savings deposits, and other deposits.
This relationship between the three briefly summarize is:
M0 = cash in circulation
Narrow money (M1) = M0 + can write a check for payment of demand deposits
Broad money (M2) = M1 + savings deposits + time deposits + units to other units of the company customer margin deposits + securities
Alipay payment and micro-channel field belonging to M1 or M2, while the central bank issued digital currency to pay attention to alternative M0 money is not a substitute for M1, M2 money.
Currently M1 and M2 money in China has basically realized the electronic and digital, all kinds of means of payment support network M1 and M2 to meet the basic needs of economic development.
Zero One Finance pointed out, but there are still three more prominent issue in the M0 monetary side: first, there is a risk of money laundering and terrorist financing is used for existing M0 anonymity it; second, based on Bank of Internet payment card accounts tightly coupled mode can not meet the public demand for anonymous payments; third, China still exist regional bank account services and network coverage is poor, the local public reliance on M0 money (cash) is still relatively high.
Therefore, the central bank issued pay attention to alternative M0 digital currency is consistent with national conditions, but also conform to the needs of high-frequency micro-payments (balances and transaction limit set limits based on different levels of the purse), but also can effectively prevent the M0 money being used for money laundering and the risk of terrorist financing.
Second, different settlement mechanism: Alipay and micro-channel payment is settled by the commercial bank deposit money, DCEP a settlement with central bank money.
This also means stability and security of both different. The central bank only one: China People's Bank (The People ". S Bank Of China, the English referred to PBOC) commercial banks are not stable enough, if commercial banking operations go bankrupt so Alipay in the" money ", has become the commercial companies' bonds "after the bankruptcy liquidation of the company's assets, counted as real money, according to" bond "in proportion to you.
Third, Alipay micro-channel Internet payment, and you can achieve double DCEP offline payment.
That is, to where there is no network, Alipay not a micro-credit, DCEP still, a lot of people think that is not important, in fact, when a lot of small local supermarket to buy things, the scan code in the underground car park fee when the signal is very tantalizingly, this little demand is very important.
Fourth, the purpose of Alipay micro-channel mobile payment, DCEP purpose is to control the legal tender status, saving distribution costs.
These are the basic introduction DCEP, as well as micro-channel DCEP and Alipay Bitcoin similarities and differences, through these comparisons, we can better understand DCEP.
DCEP with Bitcoin What is the difference?
Bitcoin is a decentralized monetary system, all of the value and prices are from consensus. DCEP is legal tender issued by central banks, the central bank are every dollar endorsement, at home, you go out and buy things, as long as the bill is intact, the other can not say no to accept RMB.
Anticipation at the First Bund financial summit in detail to illustrate the difference DCEP and to Bitcoin-led virtual currency, Huang Qifan think appear to Bitcoin, Libra, represented by digital money, making money ushered in the digital age, but "there are some companies trying through the issuance of Bitcoin, Libra challenge the sovereignty of money, based on this chain of blocks to the center of the money out of the sovereign credit, can not guarantee issue basis, the currency can not be stabilized, it is difficult to truly create social wealth. I do not believe that Libra will be successful. " .
Difference DCEP with Bitcoin and other digital currencies is that the former sovereign credit endorsement, while the latter do not have the credit endorsement, in essence, is legal tender Bank of digital currency in legal tender environment, the central bank is not only the currency of policy makers, but also the monetary system the strong endorsement.
According to Huang Qifan speech, DCEP it was concluded that the following four characteristics: 1, the value of DCEP only linked with the RMB. 2, DCEP having infinite resistance compensation method. The so-called unlimited legal tender, regardless of size refers to the amount paid, the recipient can not be rejected. 3, DCEP do not need an account will be able to realize the value of the transfer. DCEP without networking, as long as the digital wallet containing DCEP on the phone, nudged each other, will be able to realize the value of the transfer. 4, high security assets. DCEP directly issued by the central bank, commercial banks and business failures problem does not exist.
In addition to the sources of value, DCEP and Bitcoin underlying architecture is likely to be different.
DCEP China's central bank issued what exactly is the underlying architecture, there is currently not yet public information. Central Bank Monetary Institute, director of digital Mu Changchun said in his speech, China People's Bank of digital currency research team began to study the best digital currency when the central bank, made a prototype completely block chain architecture, but based on the prior art, can not be achieved retail level high concurrency requirements. So, eventually the central bank to maintain the level of technology neutral, technology is not the default route nor on a certain kind of technology.
In addition to China, as well as which countries
The central bank to issue digital money?
World Bank Group and International Monetary Fund (IMF) has issued a report in early July this year, the report noted: To date, nearly 70 percent of the central bank are working on digital currency the central bank (Central Bank Digital Currencies), referred to as the CBDC.
According to incomplete statistics Axonomy, Ecuador, Uruguay CBDC has failed; in addition, there are four countries Tunisia, Senegal, Marshall Islands, Venezuela, issued CBDC; there are seven countries, including China's central bank is promoting the development of digital currency ; there are three countries under study; but there are also including the United States, Russia, Germany, Japan, the European Union, including several developed countries being indifferent to launch digital currency the central bank attitude.
According to public information to incomplete statistics, the development of digital currency status of central banks as follows:
It has failed
Ecuador: in February 2015, Ecuador Ecuador launched currency, subject to the direct supervision of the central bank, and to maintain exchange rate stability. But a year after the operation, Ecuador currency in circulation accounts for only 0.3 births less than the amount of money the economy as a whole, can not get people to use the currency of Ecuador declared stopped in April 2018.
Uruguay: in December 2017, Uruguay's central bank piloted the world's first legal digital currency project e-Peso (electronic pesos). Uruguay's central bank after the pilot peso digitization six months, decided not to continue the use of electronic pesos, and canceled all of the outstanding figures pesos.
Issued
Tunisia: in October 2015, Tunisia launched a tile-based chain technology of digital currency and central government endorsement.
Senegal: in December 2016, Senegal launched the Bank of digital currency eCFA, based on the same block chain technology, the official currency of Senegal enjoy the same legal status CFA francs (CFAFranc).
Marshall Islands: February 2018, the Marshall Islands, the Marshall Islands parliament to pass legislation formally announced by ICO way of issuing new national digital currency SOV. To avoid inflation, the initial total issue of 2400 million units, part of the funds raised will be used for its ICO medical care costs about 53,000 citizens.
Venezuela: February 2018 Venezuela announced the sale of "oil money", the value of oil money and oil prices linked to the issue reference price of $ 60, with a circulation of 100 million. The Venezuelan government hopes the Venezuelan oil money to help complete the economic transformation, ease inflation, the Venezuelan government declared by oil money raised $ 6 billion, but public information on oil money, but very few, have not traded on the open market.
Push forward
Sweden: In early 2017, Sveriges Riksbank, Sweden's central bank began the "e-Krona (electronic krone)" project on digital currency the central bank, plans to supplement cash. Sweden's central bank plans to e-Krona for small transactions between consumers, companies and government agencies.
Ukraine: in February 2019, the central bank announced that it has completed the Ukrainian national currency digital "e-hryvnia" pilot program.
Lithuania: in February 2019, according to Cryptovibes news, the Bank of Lithuania's central bank will issue digital currency "LBCoin" This year, the aim is to test the encryption currency and block chain technology. According to members of the Bank Board Marius Jurgilas, this is a commemorative coin, a limited number of issue.
Bahamas: May 30, 2019, the Central Bank of the Bahamas (CBOB) and transaction provider NZIA.io signed a legal digital currency system development agreement to establish and implement Project Sand Dollar.
Eastern Caribbean: March 2019 message, the Eastern Caribbean Central Bank (ECCB) of the central bank is about to digital currency (CBDC) tile-based chain pilot, and plans to fully launch of the currency in 2020.
Uruguay: Uruguay Central Bank in April last year completed a retail CBDC pilot program, as part of broader government financial inclusion plan. Bank for International Settlements (BIS) said the pilot began in November 2017 issue, test electronic peso transfers, point to point and transfer money instantly via SMS or e-peso mobile phone applications. However, this technique does not use block chain. 2 issued ten million pesos electronic test, after the end of the test destroyed. The program is currently in the evaluation stage, and then to make a decision and determine the potential for further distribution.
Thailand: Bank of Thailand (BOT) has completed its CBDC second test phase, known as Inthanon project. From August last year, the focus of the first phase is to develop a proof of concept of distributed real-time Gross Settlement system (RTGS), the system uses the CBDC on distributed ledger. The second phase began in February, has now been completed, to further explore how to use the DLT in two specific areas. The first area is "BOT debt instruments issued on a distributed books in labeled, in order to achieve their life cycle activities and delivery and payment settlement" and the second area is "the regulatory compliance and data verification features into the payment process and credited on the ledger distributed to improve process efficiency and reduce operational and compliance risks. " The bank will soon enter the third phase, aims to try a "prototype based on RTGS DLT" and expand the system with other systems to support cross-border transfer of funds transaction, the scope will also cover regulatory compliance.
researching
Norway: Norway's central bank Norges studying if the issue whether the CBDC benefits for customers, Norges research has focused on the issue of CBDC, customers want to use this as a supplement to cash.
In February this year, Norges Bank Governor Oeystein Olsen said Norway's central bank may eventually release a digital currency.
Pakistan: State Bank of Pakistan (SBP) is considering the introduction of 2025 CBDC, SBP Deputy Governor Jameel Ahmad said the central bank is currently studying the concept of digital currency in order to promote financial inclusion, improve efficiency and reduce corruption.
Canada: Bank of Canada work report pointed out that the introduction of digital currency the central bank can bring economic benefits, in many countries the central bank to consider a key issue CBDC issue is whether cash and digital form of legal tender can co-exist, and if so, how to keep most optimal monetary policy.
Singapore: Monetary Authority of Singapore (MAS) and the Bank of Canada jointly launched a trial of the use of CBDC cross-border cross-currency payments. MAS May this year, said the two countries central banks to their respective domestic payment network experimental, Jasper Ubin projects and projects together, these two projects were established in two different books distributed technology platform on. The trial is in collaboration with Accenture and JP Morgan performed. The former Canadian Corda support network, which supports Singapore Quorum network.
Sweden: Sweden's central bank in the spring of 2017 began working e-krona projects to deal with over the years to reduce the use of cash. According to the central bank website description, electronic kroner as public access to digital form of cash, making the country to ensure the value of money. Although "not decided whether to issue electronic Krone", the Swedish central bank confirmed that it "is continuing to investigate the possibility of issuing electronic kroner in order to increase competitiveness and in this way to better prepare for the new digital payment market."
The attitude of other countries
United States: in December 2018, the Federal Reserve said in a report that while they welcomed the encryption money, but they do not think the central bank should establish a national currency encryption.
EU: in March 2019, when the European Central Bank board member Yves Mersch and Warsaw, Poland, attended the meeting said that the Eurosystem is currently no compelling incentive to central bank issued digital currency.
Germany: Bundesbank President Jens Weidmann said the central bank at the time of the introduction of digital currency must be careful, because it could destabilize the financial system in times of crisis.
Japan: Bank of Japan Deputy Governor Amemiya Grandview has said that the Bank of Japan has no plans to issue digital currency in the short term.
Russia: Russia's central bank responsible for Elvira Nabiulina in Skolkovo students meeting said the central bank issued digital currency belonging to the project can not start immediately, but the central bank is considering the issue.
India: The Indian government is currently considering a draft bill encryption currency "monetary and norms prohibit encryption 2019 official digital currency bill" entitled. The bill proposes to allow the government to create a digital rupee as legal tender, and digital rupees defined as "money by the Reserve Bank of digitally issued by the central government approved as legal tender."
References:
《Central Banks Worldwide Testing Their Own Digital Currencie》
"The central bank issued digital currency DCEP"
"A paper read digital currency the central bank"
"Anticipation: China's central bank is likely to launch digital currency (video + text) in the world's first"
"Article for digital currency status of central banks"
"The central bank digital currency DCEP have anything to do with us ordinary people are here."