Mu Changchun: We need to achieve the use of digital renminbi as a payment tool in all retail scenarios

2023-09-04 13:01:13

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ChainCatcher news, according to a report by The Paper, Mu Changchun, director of the Digital Currency Research Institute of the People's Bank of China, stated at the main forum of the "2023 China International Financial Annual Forum" during the 2023 China International Service Trade Fair on financial services that after completing the upgrade of currency, the payment tools for the entire society will also need to be upgraded to the new currency accordingly.

The first to achieve the upgrade will be the payment tools used in retail scenarios, specifically using digital RMB as the payment tool in all retail scenarios. Wallet providers such as WeChat, Alipay, the commercial bank's mobile banking app, and other third-party payment institution apps, as well as digital RMB operating institutions, must have compliance awareness, obtain the corresponding financial licenses, and comply with regulations. In the short term, we can first unify the QR code standards from a technical perspective to achieve mutual recognition of barcodes; in the long term, we will steadily realize the upgrade of payment tools.

The payment tools used in wholesale payment scenarios also need to be upgraded. Currently, the interbank payment clearing system and the internal systems of commercial banks that support wholesale payments are operating normally and can meet the needs of China's economic development. To avoid wasting existing systems and resources, there is no need to replace them with a central bank digital currency system, but we can achieve seamless connectivity by ensuring that digital RMB is fully interoperable with existing electronic payment tools and commercial bank deposits.

Additionally, for financial market infrastructures that were previously uncovered, digital RMB can be used for settlement, and smart contracts can be utilized to achieve delivery versus payment (DVP) and payment versus payment (PVP), thereby improving the efficiency of wholesale payments.

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