Central Bank Launches “Digital RMB” Will Paper Money Disappear?

With the spread of digitalization, the central bank has introduced a new version of the “digital yuan”, but it seems that not everyone likes the digital yuan. So why are there so many people resisting? Will paper money disappear?

Since the 21st century, the development of Internet information technology has been very fast. And with the emergence of mobile payment apps like WeChat and Alipay, people don’t often use cash for spending in their daily lives anymore. But RMB is still the legal tender of China, and its own status cannot be replaced.

With the spread of digitalization, the central bank has introduced a new version of the “digital yuan”, but not everyone seems to like it. So why are there so many people resisting? Will paper money disappear?

Central Bank Launches "Digital RMB" Will Paper Money Disappear?

 The launch of the digital yuan has generated a wide range of public opinion

According to the news released so far, the digital RMB will not be rolled out to the whole of China in the first place. Although the digital yuan is a legal tender issued by the central bank, it is currently only operating in a few pilot cities.

However, some netizens have taken to social media and other forums to say that the digital yuan itself is unnecessary and could even be dangerous to the current monetary system. And there is a widespread perception that this digital currency is not guaranteed in terms of security.

Central Bank Launches "Digital RMB" Will Paper Money Disappear?

Based on what is already known, many netizens are questioning the digital RMB because they believe it is wrong to digitize it. A number of people are worried that as the digital RMB is rolled out across China, there is a possibility that the original banknotes will be cancelled outright.

And influenced by some traditional thinking, they believe that digitizing the coins is a dangerous act. For most Chinese people, although everyone uses WeChat and Alipay for mobile payments in their daily lives, the vast majority of Chinese people still have an affinity for cash.

Many people believe that Alipay and WeChat are widely welcomed and used in China, and that there is not much point in launching a digital RMB now. Even if the digital yuan is introduced, it will be difficult to change people’s habits in their daily lives. After all, people have been using Alipay and WeChat mobile payments for six or seven years, and it’s unlikely that people will change their habits now.

Central Bank Launches "Digital RMB" Will Paper Money Disappear?

And the digital RMB payment method is no longer by scanning the code and binding the bank card, your money is stored directly in the digital account, and this money can be transferred directly as long as it is touched by your cell phone and someone else’s cell phone. So many people think that such a payment method is not very safe, and if there is a case of lost phone or account, the perpetrator can transfer all their money without knowing it.

Within the present society, network information security is really a social problem that needs to be solved urgently. So from several perspectives above, the fears of the majority of internet users do exist, but this fear is actually a bit much to worry about. After all, the central bank will introduce digital currency, itself is well-prepared. So we’ll answer the questions one by one below.

  Whether the digital yuan can be extended to the whole country is still an unknown

The first point is that the digital currency is still being implemented temporarily in a few key cities, and it is still unknown when it will be rolled out to the whole country or if it will be rolled out to the whole country. The current version is more of an experimental version, which is implemented in a small area to test the public’s reaction, and we need to see the results to decide the subsequent development. People are now worried that the promotion of digital currency nationwide will bring a crisis to the existing mobile payment system, which is in fact completely unnecessary.

Moreover, it is important to know that the RMB itself is a legal tender prescribed by the government, and it is impossible to have private companies controlling the mobile payment field all the time. From the perspective of overall national security and financial security, it is most appropriate for the state and the central bank to control the financial system and the payment system. So in the future, it is a trend that the mobile payment sector is gradually becoming more official. In addition to this, the digital version of the RMB launched by the central bank has sufficient considerations in terms of security and other aspects.

  The emergence of digital RMB does not mean the disappearance of paper money

The emergence of digital RMB does not mean the disappearance of paper money, as many people think. The digital version of the RMB is obviously an inevitable trend in the future, because with the development of the country’s economy and technology, the future is through the mobile payment method, because it is more convenient and more efficient, and also more in line with the future society, which is an inevitable trend in the future development of information technology.

In the future, people cannot go out to spend with tens of thousands of banknotes on them. In fact, it is the way of holding a large amount of banknotes that is more insecure, because you may not meet any accident when you go out with so much money. But digital currency only requires a cell phone to do all the spending.

But the complete disappearance of paper money is also not possible for the time being. After all, the current mobile payment can only be implemented on a large scale within China for the time being, while from an international trade perspective, cash payments or direct bank transfers are more common. The existence of paper money is inevitable, and it is not yet time for it to disappear completely. The digital version of the RMB is an inevitable trend for the future, but even if the paper money will disappear, it will be a very long process. So you don’t have to worry that the digital version of the RMB will completely replace the paper money in a short period of time.

In addition to this, many people worry about the so-called digital currency, but also the future of information technology is a development trend. It is important to know that the society is already digitally monetized now. Isn’t the money on Alipay and WeChat just a string of numbers? And storing money in a bank is actually turning it into a string of numbers. So digital monetization is irreversible and has become a reality within the Chinese society now.

It is important to understand that money is used to circulate, and simply having it constantly in the bank without spending it will have a negative impact on the overall market as well as economic development in China. Currently, the Chinese people are worried about digital monetization because we are influenced by the traditional thought and culture that the Chinese are very good at, and like to store money.

This is a glorious tradition left to us by our ancestors, and it can certainly be effective at certain critical times, and storing a portion of money can significantly increase the overall resistance to risk in our daily lives.

  The security of digital currencies is actually guaranteed

The concern that the security of digital currency is not guaranteed is actually wrong. You should know that the digital currency launched by the central bank itself is obviously more secure from the point of view of security.

The first point is that the WeChat and Alipay that we are using now are businesses run by private capital, and there is a risk that these businesses will fail. If these companies fail, then the money we store in WeChat and Alipay will be lost overnight. Of course, like Tencent and Alibaba company collapse is not very likely, but private enterprises are bound to have a corporate life, even Ma Yun himself said that the life of high-tech companies is very short, so this is naturally also risk.

But the central bank is different, the central bank is the country’s bank, belongs to the people’s bank, as long as the country still exists one day, the central bank is impossible to collapse. So the money you exist in the central bank’s digital currency vault is absolutely safe, not stored in private enterprises or private banks fail, then the assets will be followed by a watered down situation, the security of the currency storage guaranteed by the state is absolutely the highest, which is the same reason as the national debt.

And in fact, if it is possible to make monetary payments by touching your cell phone, the security is not lower than the current WeChat and Alipay sweep payments. In the current network fraud is a real social problem, with the development of technology, even fraudulent groups have advanced with the times. A lot of internet fraudsters are using WeChat and Alipay to carry out some operations, such as transferring assets and so on.

But the digital currency implemented by the central bank is different. In the event of a similar online fraud, both parties’ information is fully real-name and are transferred from their digital accounts to another digital account.

And now most of the accounts belong to the central bank’s account, after all, the current digital currency is only the central bank in a few cities pilot run, so once a similar fraudulent activity, want to trace the flow of funds is obviously more convenient, after all, the financial system internal investigation is simpler, without WeChat and Alipay as a transit point, in the investigation of the case instead of the digital version of the currency is faster and more convenient.

In addition to this, many people worry about situations like lost cell phones, which do exist. But the central bank is also doing enough insurance for this situation. The first thing is that you have to unlock it by fingerprint or face if you want to pay via digital currency. After all, such similar information security system has now been built relatively completely, as long as you are not actively transferring money to fraudsters, generally speaking there is no cell phone lost money is gone.

After all, the only person who knows your digital account password is generally yourself, so worrying about the safety of digital currency is actually a bit of a worry. The central bank is promoting a national project, which is far more secure than other private mobile payment systems.

And as mentioned above, this kind of digital mobile payment, in the future by the state gradually control is a necessity. Before, because the private enterprise first promoted in the scope of China’s mobile payment universal operation, but regardless of Alipay and WeChat, must also maintain cooperation with the domestic financial enterprises, that is, the major banks, in order to complete their own mobile payment system construction. And like such a system, which is after all the lifeline of the country’s economy, it is more in the interest of the people to be controlled directly by the central bank or the state.

 Conclusion

Everyone should be sensible about the new version of digital currency and consider whether they use it. After all, the state only launched the digital currency and did not ban people from using Alipay and WeChat. Government policies generally consider public opinion extensively, as well as current social realities, and rarely do they appear to be sweeping or mandatory. After all, the social impact of similar policies is not good, and can backfire.

The future of the central bank’s digital currency is not clear to us at this point. Exactly when it will be implemented nationwide, or whether it can be successfully implemented nationwide, depends most of all on the applicability of several pilot cities and whether it can meet the central bank’s expectations.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/central-bank-launches-digital-rmb-will-paper-money-disappear/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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