Digital currency, director of the institute MuChangChun defines digital currency as digital currency is issued by the people’s bank of the legal tender of the digital form, by the specified operating institutions participation and operation and to the public, on the basis of generalized account system, support functions of bank accounts of loose coupling, and the equivalent notes and COINS, has the value characteristic and law countervail sex, pay controllable anonymous.
Digital RMB is a new encryption launched by the People’s Bank of China, which is mainly used in high-frequency business scenarios of small retail businesses. It adopts a two-tier operation system, in which the central bank first gives numbers to banks or other operating institutions, and then these institutions exchange them to consumers.
It is understood that the digital renminbi is not a virtual currency, nor is it an online payment or an electronic wallet, but a legal digital currency issued by the central bank based on national credit.
Simply put, the People’s Bank of China digital currency can be regarded as a digital renminbi cash.
On August 14, 2020, the Ministry of Commerce issued the “Notice on Printing and Distributing the Overall Plan for the Pilot Program of Comprehensively Deepening the Innovative Development of Trade in Services”, which announced the pilot areas of the digital RMB.
At present, the digital RMB pilot is still “4+1”, that is, the first closed internal pilot test in Shenzhen, Suzhou, Xiongan New Area, Chengdu and future Winter Olympics scenarios, and there is no change.
Relevant people pointed out that the 28 pilot projects in Beijing, Tianjin, Shanghai and other cities reported on the Internet are actually pilot projects to comprehensively deepen innovative development of service trade.
DCEP will adopt a two-tier operation system, that is, RMB banks will first convert DCEP to banks or other financial institutions, and then these institutions will convert DCEP to the public.
The significance of DCEP is that it is not a digitization of existing money, but a replacement of M0.
It greatly reduces the dependence of the transaction link on the account, which is conducive to the circulation and internationalization of RMB.
The outlook for the U.S. economy was downgraded, U.S. stocks suffered their worst disaster in nearly two years and oil prices plunged nearly 4 percent to a peak.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.