Central Bank Mu Changchun: The central bank's digital currency is ready to go, will adopt a two-tier operating system

Mu Changchun, deputy director of the Payment and Settlement Department of the People's Bank of China, said at the China Financial Forty Forum that the central bank's digital currency is about to be launched and will adopt a two-tier operating system, that is, the upper layer is the People's Bank of China and the second is the commercial organization. The reasons are as follows: 1. The central bank's digital currency is bound to face the retail scene and face the public, while the performance of Bitcoin and Libra cannot meet the high concurrency. After research, it decided to adopt a two-tier system;
2. The issuance of central bank digital currency by large countries is a complex system engineering;
3. The IT infrastructure application and service system of commercial banks and other institutions is relatively mature, the user base is huge, the service habits have been developed; the talent reserve is relatively full, and there are many IT experts; the system has strong processing capacity, and it is applied in financial technology. Has accumulated a certain amount of experience;
4. Avoid excessive concentration of risk on a single individual;
5. Single-tier placement will trigger “financial disintermediation”. Directly placing the digital currency directly on the public will have a crowding-out effect on commercial bank deposits, affecting the ability of commercial banks to lend; in extreme cases, it will also subvert the existing financial system, and the central bank will fight the world's "great unity" situation;
6. The double layer will not change the creditor-debtor relationship of the currency in circulation, and will not change the existing money delivery system and the dual account structure; it will not affect the existing monetary policy transmission mechanism;
7. The central bank will not presuppose the technical route. Any advanced technology may be used for central bank digital currency research and development; the electronic payment and the central bank's digital currency are blurred; it can fully mobilize market forces and achieve system optimization through competition.