Digital RMB has been promoted for four years, why are there few people using it?

Tech 2023-09-17 21:53:58 Source: Network

The digital RMB has been promoted for four years, and many people have received digital RMB wages, using digital RMB to pay water and electricity bills, parking fees, and even taxes. According to the "Implementation Plan for Digital Human Resources and Social Security Construction Action" released by the Ministry of Human Resources and Social Security, in the future, social security cards may also be equipped with digital RMB payment functions

The digital RMB has been promoted for four years, and many people have received digital RMB wages, using digital RMB to pay water and electricity bills, parking fees, and even taxes. According to the "Implementation Plan for Digital Human Resources and Social Security Construction Action" released by the Ministry of Human Resources and Social Security, in the future, social security cards may also be equipped with digital RMB payment functions.

Despite the increasingly diverse usage scenarios of digital renminbi, many people still have doubts: what exactly is digital renminbi? What's the difference with WeChat payment and Alipay? What impact will the popularization of digital RMB have on people's lives and economic development? Let's invite Qin Xuan, a PhD in Accounting from Fudan University, to talk about the digital renminbi and the digital economy together.

Click on the image to ask a question

What is digital RMB

@Mobo:What is the relationship between digital RMB and RMB? Will excessive issuance of digital renminbi cause inflation?

Qin Xuan:Firstly, the digital RMB is the legal digital currency in China, which is the digital form of the legal currency (RMB). In terms of form, the RMB can be divided into digital RMB and physical RMB, which have equal legal status and economic value and are both issued and mainly managed by the People's Bank of China, thus coexisting for a long time. Secondly, digital RMB is mainly positioned as cash payment vouchers (M0), which meet the public's demand for digital cash and can reduce currency issuance costs, improve the efficiency and security of currency and payment system operations.

Since December 2022, the digital renminbi has been included in the current currency (M0) statistics, and its excessive quantity can indeed lead to inflation issues. Therefore, the People's Bank of China has taken a series of measures to avoid the oversupply of digital renminbi. For example, digital RMB does not bear interest and is mainly used for retail payments to reduce competition with bank deposits; Set transaction amounts and wallet balance limits for digital RMB wallets to prevent run on risks; Through big data analysis and risk monitoring and warning framework, to improve the foresight, accuracy, and effectiveness of digital RMB management (refer to the "White Paper on the Development Progress of China's Digital RMB" released by the People's Bank of China's Digital RMB R&D Working Group).

@Geju:The digital RMB is centralized and bookkeeping oriented. But now almost all RMB transactions are paperless, and bank transfers are also recorded. What is the difference between this and digital RMB?

Qin Xuan:As a legal digital currency, the digital RMB is a debt owed by the central bank to the public, without interest or service fees charged to individual customers, and has legal compensation; The object of bank transfers is our bank deposits, which are affected by the operation of the banking system in terms of interest rates, transfer fees, and payment time. It is worth noting that digital RMB, like paper currency and coins in circulation, can transfer value without relying on bank accounts and supports dual offline payments, with the characteristic of "payment as settlement", which makes digital RMB more closely related to cash in technology. Bank transfers do not support dual offline payments and require clear settlement through UnionPay/Online, and both parties must open real name accounts. The digital RMB also supports controllable anonymity of "small amount anonymity and large amount legally traceable", which is conducive to protecting personal privacy and user information security.

@Niudou Village:The promotion of digital RMB is accelerating. What are the advantages of using digital RMB compared to traditional settlement methods?

Qin Xuan:

@Pengpai Netizen JJzuI3:Why is the current speed of digital currency construction not very fast?

Qin Xuan:After all, digital renminbi is a new thing. The People's Bank of China is following the principles of stability, safety, controllability, innovation, and practicality, and selecting some representative regions to conduct pilot tests on digital renminbi to evaluate its comprehensive impact on the economy and finance. In fact, from a worldwide perspective, China is the first country to launch sovereign digital currency. However, in order to achieve large-scale popularization of digital RMB, a series of problems need to be solved, such as the stability and reliability of digital RMB, the continuous use of users, incentives for commercial banks and other institutions, and how to balance the relationship with WeChat, Alipay and other third-party payments.

About Data Assets and the Digital Economy

@Lin Zihan:How is data capitalization defined? What are the impacts of data assets on the economic development of the market and the general public? Can my personal data be used as my asset?

Qin Xuan:What is data assetization? According to a serious definition, data assetization is the process of organizing data resources and supporting services into identifiable forms that can bring measurable value in both internal and external markets. This may be a bit awkward, but in layman terms, data assetization is turning data into one of our assets, just like our cars, houses, and other assets. Nowadays, data has become a production factor for market development, and our country is also building a data factor market, which is beneficial for the country, enterprises, and even individuals as a whole. For the government, when land finance tends to be weak, the development of data assets can promote the implementation of data finance, bringing more taxes and fiscal revenue. For enterprises, once data is treated as an asset, it will bring more room for appreciation in future investment and financing.

For individuals, data capitalization is conducive to the formation of new personal assets. Personal data can bring benefits to the public and form new personal assets through institutional arrangements such as authorization, circulation and trading, income distribution, and security governance. The premise of data capitalization is to do a good job in data ownership, operation management, value measurement, and other issues. Therefore, if we can solve these problems effectively for personal data, it can become our personal assets. However, data capitalization is still at the beginning stage. Because data is different from houses and cars, data can be copied indefinitely. Once it is not handled well, it is easy to cause foam. Therefore, data capitalization brings social welfare, but also has certain risks. It needs to continue to explore and develop, so as to enter the next stage of data capitalization - data capitalization.

@FREA:Is it possible for personal data left on the internet, including WeChat chat records, to become a priced asset in the future?

Qin Xuan:The confirmation of personal data rights is now a major challenge, especially whether individuals can claim their data property rights from platform enterprises, which is currently difficult to solve. Why? In the era of big data, enterprises generally use massive amounts of data for data fusion applications, which is so large that it is difficult to determine the role and role of specific personal data in it. This also makes it difficult for individuals to directly claim economic benefits from platform enterprises. Now the country is also slowly exploring and adjusting, through the design of data element income distribution system, to achieve the development of platform enterprises while driving the improvement of personal income.

@Lin Zihan:How much does the digital economy contribute to a country's GDP? How will China plan for the development of the digital economy in the future?

Qin Xuan:In order to reasonably measure the contribution of the digital economy to GDP, we need to clarify the scope and relevant accounting methods of the digital economy. In this regard, reference can be made to the "Statistical Classification of Digital Economy and Its Core Industries (2021)" released by the National Bureau of Statistics. Based on the above classification framework, the "Research Report on the Development of China's Digital Economy (2023)" released by the China Institute of Information and Communications shows that the proportion of China's digital economy to GDP reached 41.5% in 2022, and the scale and proportion of China's digital economy to GDP showed a steady growth trend from 2017 to 2022. This shows the importance of the digital economy in promoting high-quality development of China's economy. At the end of 2021, the State Council issued the "14th Five Year Plan for the Development of the Digital Economy", which clarified several guiding principles and development goals for the future development of the digital economy. Firstly, the digital economy relies on data resources as a key element, so the establishment of a data element market system is a key and currently challenging challenge for the development of the digital economy. Secondly, to fully leverage China's advantages in massive data and rich application scenarios, we cannot do without the deep integration of digital technology and the real economy. This integration is also reflected in the two core industries of the digital economy - digital industrialization and industrial digitization. Therefore, innovation investment and support service systems for these two will continue to be strengthened. Finally, the development of the digital economy and the construction of the digital society and digital government will permeate each other, promoting the unity of fairness and efficiency. Therefore, in the development plan of the digital economy, China also emphasizes aspects such as digital public services and digital economic governance system.

Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])

Mobile advertising space rental

Tag: Digital RMB has been promoted for four years why