In this regard, Wang Xin, director of the Research Bureau of the People's Bank of China, revealed that the State Council has formally approved the research and development of the central bank's digital currency and will speed up the issuance of the central bank's digital currency.
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Is the cashless society really coming?
South Korea is one of the countries with the least cash dependence in the world and one of the countries with the highest credit card popularity. According to the British "Financial Times" report, the Bank of Korea announced that it will speed up efforts to reduce the circulation of coins, the goal is to completely withdraw coins from circulation by 2020, which is the first step for South Korea to move toward a "cash-free society."
After the implementation of the “waste order”, the Indian government gradually introduced the national payment wallet and the national payment QR code.
Countries such as Vietnam and Malaysia have introduced policy guidelines for building a “cash-free society”…
Globally, the Nordic countries are the closest to the “cashless society”.
More than half of Sweden's 1,600 banking outlets do not hold cash or accept cash deposits. Automated teller machines are no longer reserved in rural areas, and commercial enterprises have also legalized the rejection of cash. It is said that even hawkers selling magazines on the streets carry their credit card pos readers. If you go to church, even donations can be swiped on the POS.
Norway's largest bank, DNB, called for the cessation of the use of banknotes in 2016, and several banks closed some of their branches' cash operations.
Since 2014, the Danish Central Bank has decided to stop printing banknotes and replace them with electronic payments. In 2017, it has closed all its printing and printing departments in Denmark, announcing that it will no longer print and produce Danish krone cash including banknotes and coins.
The cashless measures in the Nordic countries illustrate the advantages and future developments of building a “cash-free society”. How does China do it?
Is it necessary for China to issue RMB?
First of all, the question raised by the previous netizens: "Now everyone pays with non-cash, is it necessary to issue a new version of the renminbi?"
The central bank replied: Although the cash use in China has declined with the rapid development of non-cash payment, due to historical evolution, consumer habits, and the needs of remote areas and special populations, cash is still important in China for quite a long time. Payment instrument. In addition, warm reminder, the People's Bank of China severely cracked down on the phenomenon of rejecting cash. If you find that you refuse to accept the RMB, you are welcome to report it to the local People's Bank branch!
Mobile payments and digital currency
As the central bank said, cash is still an important payment tool in China for quite a long time. But in terms of non-cash transactions, China is actually ahead.
We can find that countries with the closest foreign countries to “cashless society” are countries with very developed credit card payments. In China, they are different on the road to a cashless society. Credit card payment is late in China and has not been fully popularized. Mobile payment has become one of the mainstream payment methods driven by Alipay and WeChat, and the payment scenario far exceeds credit card payment.
The cashless path with Chinese characteristics is gradually taking shape. The British "Financial Times" has sent an observation and analysis article for this purpose, the title is "the popularity of mobile payments, China skipped credit cards to a cashless society."
In addition to the banknotes, central banks are still developing digital currencies. In this regard, China’s central bank is also ahead of the world. As early as February 17th, the central bank-driven blockchain-based digital bill trading platform was successfully tested. The legal digital currency issued by the central bank has been commissioned on the platform, and the digital currency research institute under the central bank has been officially listed. If all goes well, the People's Bank of China is likely to be the first central bank to issue digital currency and launch real applications.
Central Bank: Accelerate the issuance of digital currency
On July 8, at the launching ceremony of the Digital Finance Open Research Program held in China and the first academic seminar, Wang Xin, director of the Research Bureau of the People's Bank of China, revealed that the State Council has officially approved the research and development of the central bank's digital currency and is organizing market institutions to conduct central bank digital currency. R&D, meanwhile, in response to Facebook Libra and cryptocurrencies, will accelerate the introduction of central bank digital currency. Moreover, the central bank's digital currency is defined as M0 in China, which is a certain degree of substitution for cash.
However, it can be expected that even if the digital currency is issued, the physical RMB will not withdraw from circulation in a short time.
As for how long it takes for China to truly move towards a cashless society, how can it take decades? Therefore, in the short term, the cashless society has little impact on the RMB collection. In the long run, the big probability of the five-page currency is the closing currency of the physical currency. Now the premium is not high, and the collection is also good. (Sina Finance)