All entered the cashless society, and the RMB 5 yuan also used blockchain to increase the anti-counterfeiting?

How to trace the source scene to 5 yuan.

On April 30th, an interesting anecdote appeared in the currency circle – the new 5-yuan notes will be tracked using blockchains. This idea is quite surprising, because the blockchain is a technology based on the digital world, more digital than the Internet, and the combination of blockchain and sheet-fed prints is unimaginable.

So how is this going to happen? How likely is this idea to become a reality?

The source of the news is several analysts. On the 29th, the official website of the central bank announced that it will issue the fifth set of RMB 50, RMB 20, RMB 10 and RMB 1 bills in the 2019 edition starting from August 30 this year. Both the size and the denomination are available, and the 5 yuan banknote is missing.

In response to this, the Central Bank's Monetary and Financial Bureau said that the central bank has continued to develop new technologies for currency printing in recent years. In order to improve the anti-counterfeiting capability and circulation life of the renminbi, the five-yuan banknotes with lower denominations and smaller circulation are selected for the application research of related new technologies, and the issuance work is arranged separately.

In response, Wang Hongying, Dean of the China (Hong Kong) Financial Derivatives Investment Research Institute, said in an interview with Beijing Commercial Daily:

“The central bank may apply blockchain technology for information identification and coding, use it as anti-counterfeiting and tracking of banknotes, and promote the development of national anti-money laundering work.”

Financial analyst Xiao Lei also believes that the anti-counterfeiting technology of 5-yuan banknotes may be related to tracking and positioning. This is likely to achieve offline and online linkage recognition, similar to an attempt of digital currency. The basis for the judgment is that “in the relevant papers of the central bank, it has been clearly stated that the future digital currency is mainly to replace M0, which is cash in circulation.”

But will the digital currency technology that replaces M0 be used on the 5 yuan banknote being tested? Or will it be combined with paper money? This is another unknown.

Therefore, it can be said that whether the 5-yuan banknotes use the blockchain technology still has great variables.

Currency anti-counterfeiting, this is a necessary measure to safeguard the country's coinage. One of the main reasons for the fifth set of legal currency renewal is also to enhance the overall anti-counterfeiting ability of the renminbi. In the past 20 years, the counterfeit currency counterfeiting method has become more and more mature, which puts higher demands on anti-counterfeiting technology.

If the central bank's final blockchain technology is used to verify and trace the RMB 5 yuan, this new technology can control the cost while improving efficiency. This is a concern of the industry. “After all, the previous anti-counterfeiting methods are realized by physical technologies such as watermarks, patterns and crown numbers. The anti-counterfeiting tracking of blockchain technology is first of all networking, and more than one centralized node is needed, but multiple nodes are needed. In addition to ensuring safety, it will also increase costs." A banking analyst told Odaily Planet Daily.

A practitioner of cryptocurrency is wondering:

"Now even the 18-line small county town has entered a cashless society. Is it necessary to spend a lot of effort to improve the anti-counterfeiting of banknotes? And whether the digital currency can be used to replace the legal currency. After all, the circulation path of digital currency is traceable. Do not rely on the counterfeit counterfeit."

Original article, author: Huang Xue Jiao

Source: Planet Daily

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