The first application scenario of the central bank's digital currency is implemented, and the "digital wallet" will be used as a payment channel

Source: Finance Association

"Technology Board Daily" (Shanghai, reporter Zhou Yuan) reported that the central bank's digital currency (DC / EP) has been implemented to a small extent. This is the first practical application of the central bank's digital currency since the news of R & D.

According to the reporter of Science and Technology Board Daily, Alipay participated in the DC / EP technology and hardware research and development, issuance and payment channel technical work. DC / EP has the characteristics of traceability, encryption and penetrable supervision, and digital currency wallets have the characteristics of opening digital wallets with different logos according to different application types. These two will greatly improve the efficiency of financial risk supervision and eliminate financial Fraud and other acts.

Suzhou Xiangcheng District Landing DC / EP

According to the exclusive report of the Science and Technology Board Daily, the district-level agencies and enterprises in Xiangcheng District of Suzhou, the salaries of workers through the four state-owned banks of the Workers, Peasants and China Construction will complete the central bank digital currency (DC / EP) in April. Installation of digital wallet. In May, 50% of the transportation subsidy of his salary will be obtained in the form of digital currency.

According to the official letter obtained by the reporter of Science and Technology Board Daily, Suzhou Xiangcheng District is an important pilot area for the central bank's digital currency (DC / EP) and is cooperating with the central bank and the four state-owned banks of China Construction Industry and Agriculture to promote the pilot work of digital currency.

The official letter requires that the enterprises and institutions and various management committees in each district of Xiangcheng District should sign a digital currency distribution agreement with the wage distribution bank, install a digital wallet for all staff (except retirees), and include transportation subsidies in the monthly salary. 50% will be issued through digital currency.

The official letter states, "(Salary) signing agreement and digital wallet installation work must be completed before the end of April, and digital currency issuance work should be completed in May. If the salary issuance is outside the four state-owned banks of China Construction Workers and Peasants, you must choose One of the four state-owned banks of the workers, peasants and farmers, and China Construction Bank, as a cooperative bank for the payment of transportation fees, completed the opening of bank cards, the signing of the issuance agreement, and the installation of digital wallets at the end of May.

Alipay: the operating agency of DC / EP

In what scenarios is digital currency used? By what technical means? What form of payment?

At present, the central bank has not released relevant information on such issues, but a reporter from the Science and Technology Board Daily noted that on February 21 this year, Alipay applied for a patent-digital currency transaction execution method and device and electronic equipment.

From that day to March 17, Alipay has disclosed five patents related to the central bank's digital currency.

On April 15, a reporter from the Science and Technology Board Daily learned from Alipay that Alipay participated in the technology development, issuance, payment methods, payment channels and equipment research and development of the central bank's digital currency (DC / EP).

The central bank's digital currency DC / EP adopts a two-layer architecture, which requires operating agencies to participate in the secondary issuance of digital currency.

Alipay mentioned in the background introduction of the patent application on February 21 that "Alipay is likely to participate in the secondary issuance of central bank digital currency", which is equivalent to Alipay having the same status as commercial banks.

Alipay ’s patent on “Execution Methods and Apparatus for Digital Currency Transactions and Electronic Equipment” stated in its application that “based on the existing issuance system of digital currencies, it usually follows a two-tier delivery system from the central bank to the operating agency. Refers to institutions licensed by the Central Bank such as commercial banks, third-party payment institutions (such as Alipay) that have the right to issue digital currency. "

Alipay is the English name of Alipay.

Alipay's patent application description on February 21 also mentioned the method for third-party operating agencies to obtain digital currency:

"The DC / EP issuance quota obtained by an operating agency usually depends on the amount of reserves that the operating agency pays to the central bank. For example, an operating agency that adopts a two-tier delivery system and obtains a DC / EP issuance permit can The bank opens a reserve account and can pay the reserve to the central bank at 100% of the issuance quota. "

A tool for financial regulation

The biggest difference between digital currency and current electronic currency lies in its traceability, encryption and penetrable supervision.

These characteristics can improve the legality identification and risk control efficiency of commercial banks' financial behaviors for institutions or individuals. Under the support of penetrating, encryption and traceability features, financial fraud, embezzlement of funds, embezzlement of funds, etc. will be difficult to avoid Regulatory tracking.

Some people in the industry told the reporter of "Technology Board Daily" that

"The actual application scenario of the central bank's digital currency (DC / EP) is not much different from Alipay and WeChat. The difference that C-end users can clearly feel is that there are differences in payment channels."

For example, the current payment method is through Alipay, WeChat or NFC (near-field payment). After the central bank digital currency arrives, it will use a "digital wallet" as a payment channel.

According to a reporter from the Science and Technology Board Daily, Alipay's patent on February 28, "Method and Apparatus for Opening Digital Currency Wallet and Electronic Equipment", shows that Alipay provides digital wallet technology and hardware development.

According to the patent document, there are many types of digital currency wallets. Different types of digital currency wallets provide different services, and the opening request carries the user identification.

Therefore, the digital currency issued by Xiangcheng District of Suzhou is a transportation subsidy, so its high probability can only be used for transportation. This must be confirmed by the staff of the enterprises and institutions in the districts of Xiangcheng District in Suzhou who have received the digital currency.