Currently, more than 60 countries around the world have begun digital currency experiments. Since the establishment of the Digital Currency Research Group of the People's Bank of China in 2014, the development and application of digital renminbi has also been put on the agenda. With the continuous improvement and establishment of laws and systems related to digital currency, digital renminbi pilot projects are also blooming across the country. Shenzhen, Suzhou, Chengdu and other places have issued digital RMB red envelopes worth tens of millions of yuan to citizens. Xiongan and Beijing Winter Olympic venues will also accelerate their application, and the pace of digital RMB is approaching.
The digitization of RMB is an important step in my country's financial reform and an inevitable result of future financial development. As the leader of global digital currency, our country has huge advantages in technical means, laws and regulations, and basic conditions. As a new product of old wine in new bottles, digital RMB has a profound impact on my country’s economic development. So, why develop digital renminbi?
(1) Good basic conditions
Public information shows that as of the end of 2020, the number of Internet users in my country is close to 1 billion, of which the number of online shopping users has reached 780 million, ranking first for 7 consecutive years. No. 1 in the world. As China's Internet infrastructure continues to be optimized and upgraded, the number of users will continue to increase in the future. In the field of mobile payment, my country's penetration rate is as high as 86%, which is about three times the global average, ranking first in the world. In 2020, there were 123.2 billion mobile payment transactions nationwide, a year-on-year increase of 21.5%; the payment amount was 43.2 billion yuan, a year-on-year increase of 24.5%. my country's huge Internet user base and rapidly developing mobile payments have established a solid foundation for the further promotion and application of digital renminbi.
(2) Impact on the macro-economy
Traditional monetary policy requires the collection of a large amount of information. During the collection process, some data will inevitably have errors and cannot be well " Prescribe the right medicine to the problem." After the policy is promulgated, it still needs to go through several capital flow links to achieve the policy goals. There is a certain lag, which seriously affects the implementation effect of monetary policy. The digital renminbi issued by the central bank uses big data and blockchain technology, which can record and store a large amount of transaction information and currency whereabouts, monitor currency operations in real time, and quickly collect currency creation, accounting, flow and other data to provide monetary authorities with The injection of currency and the formulation and implementation of monetary policies provide a huge and reliable data base, which is conducive to the stability and development of the macro economy and provides useful means for economic regulation.
(3) It is conducive to strengthening financial supervision
Due to the anonymity of physical currency, the state cannot monitor the flow of every fund, so some criminals’ corruption and money laundering , tax evasion and other behaviors cannot be controlled, which has seriously affected the social atmosphere. The central bank can obtain data on the flow, amount, and transaction parties of each digital renminbi fund in the background. If tax evasion or large-scale abnormal consumption occurs, the central bank's large database will issue an early warning, quickly locking its identity, and monitoring the government. It provides powerful help in combating a series of illegal and criminal activities, and at the same time can also create a group of honest and upright cadres. On the other hand, in the current situation where fiscal funds have been repeatedly misappropriated, digital renminbi can be accurately distributed to every poor family and micro and small enterprises, ensuring the efficiency of the use of fiscal funds and truly implementing earmarked funds.
(4) Conducive to the internationalization of the RMB
As the second largest economy in the world, China’s GDP in 2020 reached US$14.725 trillion, compared with US$21 trillion in the United States. The difference is less than 50%, and Japan, which ranks third, has a total GDP of 4.9 trillion US dollars, only 1/3 of our country. As the world's largest trading country, my country's total import and export volume in 2020 reached 32.16 trillion yuan, and in the first quarter of 2021 it was 8.47 trillion yuan, a year-on-year increase of 29%. However, the share of RMB in global payments is very low. Compared with the 80% share of the US dollar, Japanese yen, and euro, the RMB only accounts for less than 2.5%. In order to further expand and develop China's economy, it is necessary to promote the internationalization of RMB. The process of transformation is imminent.
If the digital RMB can bring convenience to international traders in holding and using currency, as well as provide convenience in cross-border trade, cross-border settlement and cross-border investment and financing, it will be conducive to the internationalization of the RMB to a certain extent. advancement. Therefore, we should seize this window of opportunity to promote the RMB to go global through the “Belt and Road” initiative, promote cross-border trade settlement of digital RMB with neighboring countries and the “Belt and Road” initiative countries, improve payment and settlement efficiency, and use the first-mover advantage to create A new global trade settlement system to achieve overtaking of the financial system.
(5) Becoming the leader of the global digital economy
Under the circumstances of the global blockade brought about by the new coronavirus epidemic and the overall economic decline of European and American economies, the exploration of the global digital economy It's in full swing. Currently, more than 60 countries around the world have begun experiments with national digital currencies.
The Bank of Japan announced that it will conduct a one-year central bank digital currency experiment starting in April 2021; the timetable announced by the Central Bank of Thailand shows that it will conduct retail digital currency testing in 2021-2022; the United States will also conduct a trial in 2020. A framework for creating a U.S. central bank digital currency was proposed in May. In this stage of digital economic exploration, China’s digital renminbi is temporarily in a leading position.
In March 2021, the People's Bank of China announced that the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and the General Clearing Center of the People's Bank of China, the Cross-Border Interbank Payment Clearing Co., Ltd., the Central Bank Digital Currency Research Institute and China Pay Four Chinese-funded institutions of the Clearing Association jointly established Financial Gateway Information Services Co., Ltd. in Beijing, focusing on information system integration, data processing and technical consulting. The strengthening of cooperation between the People's Bank of China and SWIFT on digital renminbi will help both parties expand the global development of the digital currency field. It can help SWIFT establish a multilateral regulatory system for digital currencies and related regulations and technical frameworks, and drive the development of digital currencies around the world. If all goes well, China's digital renminbi will be firmly in the leading position in the world, a major driving force for the internationalization of the renminbi, and another major historical process in the history of China's currency development.
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