Digital RMB： a brand-new payment method
In recent years, digital RMB has begun to enter the public’s field of vision. Let’s take a look at the new payment method of digital RMB with quick questions and answers.
What is digital RMB?
Digital RMB is legal tender in digital form issued by the People’s Bank of China. It is operated by designated operating institutions and exchanged with the public. Based on the generalized account system, it is exchanged with physical RMB 1:1 to form a legal tender system.
What’s the difference between digital RMB and paper money?
Although both digital RMB and paper money are RMB, they are essentially two different payment methods. There are the following differences:
Usage scenario: Paper money is mainly used for offline transactions, while digital currency can be used online and offline.
Holding method: Paper money needs to hold physical items, while digital currency holds and manages it through digital wallet.
Transaction efficiency: digital currency transactions are more efficient, especially cross-border payments. Because the traditional bank transfer needs to go through many intermediate links, which takes a long time, while digital currency can realize real-time transactions.
Anti-counterfeiting ability: digital currency has adopted advanced cryptography technology, which has higher anti-counterfeiting ability.
What’s the difference between digital RMB and WeChat and Alipay?
Although digital RMB, WeChat and Alipay are both payment tools, they are quite different in essence.
The issuers are different: WeChat and Alipay are electronic payment tools issued by third-party payment institutions, while digital RMB is issued by the People’s Bank of China in digital currency.
Different monetary attributes: WeChat and Alipay are payment tools, which have no monetary attributes and do not yet have the function of saving or investing. Digital RMB is a digital legal tender, which has many monetary attributes such as savings and investment.
Different security: The security of WeChat and Alipay depends on the technology and management level of third-party payment platforms, and there are certain risks. The digital RMB is more secure and reliable by adopting multiple protection measures such as modern cryptography and distributed ledger technology.
Different usage scenarios: WeChat and Alipay are mainly used for online and offline shopping, transfer and other payment scenarios, while digital RMB can also be used online and offline.
Different regulatory standards: WeChat and Alipay are non-bank payment institutions and are regulated by the Regulations on Payment and Clearing. Digital RMB is issued and managed by the People’s Bank of China, which is subject to stricter financial supervision.
Under what circumstances can digital RMB be used?
It can be used in many scenarios such as retail consumption, transportation, cultural tourism, government affairs, campus, medical care, business circle, finance, etc., and even some administrative organs and units implement full payment of wages in digital RMB. In the future, the application scenarios of digital RMB will be further expanded, such as electronic bills and cross-border payment.
Is digital RMB safe?
Digital RMB adopts a variety of security technologies, including encryption algorithm, distributed account book technology, smart contract, etc., to ensure the security and privacy of transactions. Nevertheless, any new technology has certain risks, and digital currency is no exception. Our government has strictly supervised and managed the design and operation of digital RMB to ensure the security and stability of digital currency. Therefore, digital RMB is a relatively safe payment method, and users can use it with confidence.
Can the payee reject digital RMB?
Digital RMB is the legal base currency, and the payee may not refuse to accept it, just as it may not refuse to accept paper RMB.
In the future, digital RMB will have more uses and scenarios. It is believed that with the rapid development of digital economy, digital RMB will also become an important force to promote China’s economic innovation and upgrading and build a new financial system. (xinye technology)