Experienced the digital RMB and said some ideas

This article is just some experience, it can be said that the content is still some things, but not much.

my country launched a digital renminbi pilot a few years ago, and also launched a digital renminbi wallet app, which was launched on the mobile app store in January this year. Out of natural curiosity about new things, I downloaded one and used it for a while.

On the Huawei mobile phone I used, I searched for “digital RMB” in the app store and found the wallet app. The download volume is not large, more than 20 million times.

Experienced the digital RMB and said some ideas

First of all, this wallet APP still needs to enter the mobile phone number to register. I thought it was anonymous before, because the news said that the digital RMB is actually equal to the cash in circulation, that is, M0. I thought it was an anonymous APP.

However, the registration of the mobile phone number is still required. Isn’t this mobile phone number still able to track personal information?

Therefore, digital RMB is still different from cash banknotes, and banknotes are truly anonymous.

After registering an account, enter the APP, and you will be asked to “open or add a digital wallet” in the picture below. After clicking on it, you can choose different service operators, all of which are banks.

There are banks to choose from, from the four major banks to Alipay’s online merchant bank and WeChat’s WeBank. I just randomly chose Wechat’s WeBank, and then I can open a wallet.

Under one account, several wallets can be created, and each wallet corresponds to a service operator.

The APP says “Open an anonymous wallet”, because there is no need to enter additional ID information or bind a bank card, just verify the mobile phone number and you can choose a bank as a service institution, so the operating banking institutions It’s anonymous.

However, for banks, you can actually check your identity information with a mobile phone number, but it is not actually anonymous.

Experienced the digital RMB and said some ideas

At first I didn’t understand why wallets should be bound to various bank operating agencies. Could it be that the server of the APP developer can’t manage these virtual wallets? In fact, digital RMB wallets also need professional financial institutions to serve users. This professional financial An institution is of course a bank, and it can also utilize a large number of physical institutions of the bank to provide offline services.

The digital renminbi adopts a two-tier operation system, that is, the People’s Bank of China does not directly issue and exchange the central bank’s digital currency to the public, but first converts the digital renminbi to the designated operating institutions, that is, the above commercial banks, and then by these Bank exchange to the public. Operating institutions need to pay 100% reserves to the People’s Bank of China, which is a 1:1 exchange process. This two-tier operation system is basically the same as the issuance of banknotes, so it will not have a big impact on the existing financial system, nor will it have a big impact on the real economy or financial stability.

In other words, the money you put into the wallet app will not be loaned out by the bank.

What services can these banks provide?

The wallets opened after registering with a mobile phone number are only four types of wallets.

There is a limit of 10,000 yuan in it, which means that if I want to hide my private house money behind my wife, I can only put 10,000 yuan in it. The maximum single payment is 2,000 yuan, and the maximum payment is 5,000 yuan per day for a year. Cumulative payment of up to 50,000 yuan.

From the user’s point of view, this restriction is obviously not as convenient as Alipay and WeChat, and it is not as convenient as the APPs of major banks.

If you want to increase this upper limit, you need to enter the ID card account number, bank account number, etc. to upgrade the wallet level to the third or second type of wallet. If you want to upgrade to the highest level of the first-class wallet, you have to go to a financial institution for an interview. This interview agency There are also restrictions that are in some major cities in the country.

Entity institutions are required to provide services such as face-to-face signing. This is obviously the reason why the APP developers want our users to choose the service operator of the wallet. After upgrading to a type of wallet, the amount that can be deposited and the amount that can be transferred out There are no restrictions.

In addition, it will be mentioned later in this article that if you need a digital RMB hardware wallet like a bank card (there are pictures at the back of this article), you also need to go to the bank to handle it. In other words, digital RMB also needs professional entity services.

Experienced the digital RMB and said some ideas

The picture below is the homepage of the digital RMB APP. You can pay money by using the NFC function of Touch Touch and scanning the QR code of the merchant, which is no different from WeChat Alipay. The cashier shows her QR code to let her scanner scan you to pay.

Experienced the digital RMB and said some ideas

To transfer money to others, click “transfer money” in the picture above, and then the interface shown below will appear. You can transfer money to others by entering your mobile phone number or wallet number. Of course, after binding the bank card, it can also be transferred to the bank card.

Experienced the digital RMB and said some ideas

It is also very simple to recharge the wallet. It will let you choose a bank, and then directly jump to the interface of the bank APP to operate.

But the most interesting thing is the service, that is, what you can do with this digital RMB wallet, as shown in the figure below.

Experienced the digital RMB and said some ideas

There is a “sub-wallet” function in it. After you click it, you can choose a series of merchants. Selecting this merchant creates a sub-wallet corresponding to this merchant, that is, pushes the digital RMB payment service to the APP of each merchant.

For example, if you choose Meituan here, when you open the Meituan APP to order takeout, the payment method will display the option of digital RMB. I checked it today, Didi Chuxing, Ele.me, Meituan, Merchants such as Hema Fresh, SF Express, and Suning Tesco have already supported digital RMB payments.

All you need to do is to create sub-wallets of these merchants under the operation on the digital RMB APP.

The following picture shows the two interfaces of the sub-wallet. I only chose to create four sub-wallets of Meituan, Tmall, Ele.me, and Hema. When I use these four APPs to consume, the payment options will be displayed. There is an option for digital renminbi payment, and the payment is the same as WeChat and Alipay, just enter the payment password.

Experienced the digital RMB and said some ideas

But what is more interesting is the “red envelope function” and “post a post” function of the service interface.

This red envelope is not sent to each other between users, but to send money to each other.

This red envelope is sent by the government, as well as various companies and institutions to the user’s digital RMB wallet. For example, there are activities on the APP of major banks. If you choose me as the wallet service agency, I will send you a red envelope to your wallet APP. superior,

For example, the government sends consumption red envelopes to ordinary people, such as the Meituan food delivery APP, which sends red envelopes to digital RMB wallets for activities.

Note that this red envelope cannot be transferred to a bank card at present, just to let you use it, and you can also specify the validity period and usage scenarios. This is also very understandable. The government gives you red envelopes for consumption, not for investment and wealth management. If you can transfer it to a bank card, you can invest in the stock market, housing market, and buy wealth management products. .

In addition, “posting a sticker” is to transfer money between mobile phones and other forms of hardware wallets, such as bank card-type RMB wallets, or bracelets, etc. The picture below shows two card-type digital RMB issued by different banks. The wallet, with a small window on it that can directly display the amount, should use electronic ink screen technology.

In fact, the hardware is not only a mobile phone, but also various forms such as bracelets and cards, and everything can be used for payment.

Experienced the digital RMB and said some ideas

Well, just a few thoughts,

Of course, first of all, digital renminbi is a currency, while digital renminbi wallet APP, bank APP, WeChat and Alipay are just payment channels and means, but from the perspective of our users, there are the following differences:

1: For users, there is an additional form of payment between anonymous and real-name

There is no need to open a bank account or enter an ID number to register. You only need to register with your mobile phone number, and you can use the digital RMB wallet APP to receive and pay money. This is also different from bank cards, WeChat payment and Alipay. These All of them require personal identification information to open, so the digital RMB wallet can be considered anonymous, although in fact, it is still possible to track who you are through the registered mobile phone number.

In addition, this anonymity is only for four types of wallets, and there are restrictions on various amounts. For example, you can only put a maximum of 10,000 yuan, a single payment of up to 2,000 yuan, and a single-day payment of up to 5,000 yuan. This is obviously not enough. I will go back to my hometown. The person’s round-trip air ticket exceeds the upper limit of 5,000.

If you want to transfer a large amount of money in and out, you have to upgrade the four types of wallets to the third type, the second type or even the first type, and this upgrade still requires entering personal information and bank card information.

However, it makes sense that small-value payments do not require bank accounts. For example, some Chinese people do not have bank accounts, and foreigners who come to China for tourism and business trips can use digital RMB wallets to pay.

Therefore, banknotes, digital RMB wallets, as well as bank APPs, WeChat payment, and Alipay are different payment forms.

Banknotes have the best anonymity, digital RMB wallets can be considered semi-anonymous in the middle, and WeChat Pay + Alipay + Bank APP are real names. Paper money is offline, while the latter two are online.

The public can choose according to their needs.

2: Because digital renminbi is cash, there is no handling fee for transferring in and out between wallet APP and bank card . This is like going to the bank to deposit cash into the bank card, and there is no handling fee.

This is also different from WeChat and Alipay. WeChat change and the money in Alipay are transferred to bank cards. Tencent and Ali will charge a handling fee.

3: There is no interest in the digital RMB wallet

This is very important. The reason why there is interest on depositing money in the bank is because the bank loaned the money you deposited and got the loan income, so it will give you interest on the deposit.

In the same WeChat and Pay, the purchase of wealth management is also because the money is invested, so it will give you interest income.

The digital renminbi is full of cash, and each operating bank pays 100% of the reserves to the People’s Bank of China, that is, the cash you transfer to the digital renminbi APP, and the bank serving you will not lend it to the market. So there is no interest for you.

: It enriches the channels for the government to distribute cash, enriches the channels for the government to accurately distribute money, and enhances the ability of the government to accurately stimulate the economy.

Now cash banknotes are used less and less in daily life. Through the digital RMB wallet, the government actually has another means of issuing cash. For example, the kindergarten where my child is located distributes government subsidies, and the teacher asks our parents to report the bank card number, account opening bank and other information, and now the government can directly send money to the digital RMB wallet.

Note that there is still a difference between the two. The bank card issued to me is a current deposit, which has current interest, and the digital RMB wallet is cash, which has no interest.

This difference is very important. For example, if the government wants to send money to the people to stimulate consumption, if it is issued to a bank card, it will become a demand deposit. The people may not use it for consumption, but may use it to buy wealth management and other things and continue to save it for interest. The purpose of consumption is not achieved.

However, it is sent to a personal digital RMB wallet in the form of a red envelope. The money in the red envelope has no interest, and it cannot be transferred to a bank card, nor can it be withdrawn. Precise stimulation.

In addition, the red envelopes issued by the government can also specify scenarios and limit the validity period, just like the red envelopes we receive on Didi APP , Meituan APP, etc., so that precise control of industries, regions and time that need to stimulate consumption can be realized. .

5: At present, the digital RMB wallet is mainly used in domestic retail scenarios, but in the future, it can also be linked with the RMB cross-border payment system CIPS to realize overseas retail payment, which can enrich the payment methods of Chinese people abroad.

This can be considered as a type of payment infrastructure construction, and the completion of the infrastructure is conducive to the internationalization of the RMB.

This is easy to understand. Today, the US dollar and the euro are international currencies. When you go to a bank branch in China, you can easily apply for a credit card with an account in US dollars and euros, and you can also handle international remittances in euros and US dollars. The reason is that they are all processed through various It is connected to the cross-border payment system of USD and EUR.

The cross-border payment system like the U.S. dollar is called CHIPS, and our corresponding CIPS is connected to far fewer banks.

Finally, let’s talk about the problem. From the user’s point of view,

First of all, the consumption scenarios of digital RMB are still too few, unlike WeChat and Alipay, especially WeChat has opened up almost all consumption scenarios. And from the current situation, even Alipay is far behind in the competition with WeChat. In daily restaurants and roadside stalls such as micro-payment scenarios, the proportion of WeChat payment is almost 70% to 80%. Even higher, the rest is Alipay and other payment methods, so even if the new APP opens up all the scenarios like Alipay, it is difficult to compete with WeChat, because the habit has been formed.

Secondly, whether it is WeChat or Alipay, money will have interest in it, and WeChat balance and Yu’ebao can also be used for payment while enjoying interest, which is very attractive, and digital RMB wallets are cash, yes no interest.

Then in terms of user experience, there are some gaps between the digital RMB wallet and WeChat Alipay, such as transferring money to someone else’s wallet. If someone else’s wallet is an anonymous four-type wallet, you can transfer money directly through the mobile phone number or wallet number.

And if the other party is a real-name third-class, second-class, and first-class wallet, even if you transfer a few yuan, you have to enter the other party’s name, which is not as convenient as WeChat.

For users, the biggest value seen at present is the red envelope function, which is the red envelopes promoted by the government and various commercial organizations, such as some banks, takeaway apps, as long as you choose this bank as the wallet operator, or in this takeaway When the APP opens digital RMB payment, some red envelopes will be sent to your digital RMB wallet APP.

In addition, if the government engages in consumption red envelopes, it will also be sent to your digital RMB wallet. Shenzhen has held a wave of activities before and issued a lot of red envelopes.

On March 25, the Shenzhen Municipal Government announced that it would issue 500 million yuan of consumer coupons in the form of digital RMB red envelopes. It is mentioned that “the “Shenzhen Special Zone” will be set up on the large-scale e-commerce platform, and key enterprises in the fields of consumer electronics, clothing and apparel, gold and jewelry, glasses and watches, home decoration, food and beverages, etc. will be organized to settle in the city, and 500 million yuan of funds will be arranged to issue consumer coupons to promote It will be distributed in the form of digital RMB red envelopes to drive the formation of consumption hotspots.”

Experienced the digital RMB and said some ideas

And other user experience is not as good as WeChat and Alipay, or worse, this is the current problem.

In short, the digital renminbi is not so mysterious. In fact, it is an online version of cash. There is no interest. There is no handling fee for transferring in and out to bank cards. Governments and commercial institutions can accurately issue red envelopes for consumption or ordinary red envelopes.

Of course, in general, the emergence of digital renminbi is beneficial for the government to manage economic activities more effectively. Of course, the digital renminbi wallet app must be used more by the general public to play a greater role.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/experienced-the-digital-rmb-and-said-some-ideas/
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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