Mu Changchun: Digital RMB helps financial inclusion

On the 24th, at the 10th China Payment and Settlement Forum, Mu Changchun, director of the Digital Currency Research Institute of the People’s Bank of China, shared the issue of digital renminbi’s contribution to financial inclusion.

Mu Changchun: Digital RMB helps financial inclusion

He said that there is still a “digital divide” in the field of payment inclusiveness, and as a public product provided by the People’s Bank of China for the domestic retail payment market, the original intention of digital renminbi is to promote the development of financial inclusiveness.

Nowadays, financial inclusion is regarded as a comprehensive policy goal that covers a wide range of policies. It refers to the requirements of equal opportunities and the principle of business sustainability, and at an affordable cost to provide appropriate and effective services to all classes and groups of society in need of financial services. Financial Services.

Mu Changchun believes that its connotation mainly has four aspects: First, the availability of services. That is, consumers can access various service facilities and obtain service products in an equal opportunity manner, so that people can easily select and obtain a series of financial products and services. The second is the affordable cost. Financial institutions must provide inclusive financial services and make them affordable. At the same time, the various operational management and risk costs of financial institutions should also be affordable to ensure that they can sustainably provide inclusive financial services. The third is usability and high efficiency. Provide usable and high-efficiency product lines for people with disabilities, the elderly, non-residents and other key service groups of inclusive finance, so that they can feel that these products are not only usable, but also easy to use and love to use. Fourth, the competitive environment is fair. Digital technology of “keeping integrity and innovation” should create a level playing field for the market, and ensure that financial products are legally compliant, safe and effective, and should not be used for regulatory arbitrage in the name of “digital” and “inclusive”.

At present, the “digital divide” in the field of payment inclusiveness is mainly manifested in some remote mountainous areas and places with weak broadband network infrastructure. Some people cannot enjoy the benefits of digital financial technology. In addition, about 1.5 billion people worldwide are marginalized in economic activities due to their inability to authenticate their identities.

He said that in the pilot process of digital renminbi, he has been working hard to implement the concept of financial inclusion.

One is to enhance the availability of payment services in the design of digital renminbi.

The loosely coupled design of digital renminbi accounts makes it convenient for people in remote areas to open digital renminbi wallets without holding traditional bank accounts, which is conducive to improving the coverage of financial services; we cooperate with operating agencies to carry out barrier-free design and optimization The digital renminbi APP screen reader, voice assistant, contrast enhancement and content magnification functions are added to improve accessibility, provide a friendly front-end interactive experience, and meet the needs of people with disabilities. In order to alleviate the dilemma faced by the elderly in the digital age that they can’t use or dare not use electronic products, we have also launched a digital RMB visual card hardware product. Non-residents who come to China for a short time are not accustomed to using mobile APP soft wallets. Use a visual card. In addition, for scenarios with poor communication network coverage, the public can rely on the dual offline function to realize convenient payment anytime, anywhere. In the future, we will further improve the availability of digital renminbi, build a distributed digital identity authentication system, and provide digital financial identity recognition and authentication services for a wider group of people.

The second is to reduce payment costs and increase affordability in the design of digital renminbi.

The People’s Bank of China does not charge fees to the issuance level, and commercial banks do not charge individual customers for digital RMB exchange service fees, which will help reduce the burden on the real economy and optimize the business environment. In terms of reducing the cost of payment information protection, in response to the problem of excessive privacy costs paid by the public using mobile payments, the digital renminbi follows the controllable anonymity principle of “small anonymity, large amounts can be traced according to law”, and attaches great importance to the protection of personal information and privacy , To meet the public’s demand for small anonymous payment services, better protect personal information, and ease the “privacy paradox” and social anxiety.

The third is to improve the efficiency of payment products in the design of digital renminbi.

Combining the loose coupling and value characteristics of the bank account of the digital renminbi, it realizes “payment as settlement”, improves the operation efficiency of the payment system, and improves the efficiency of merchants’ capital turnover; the digital renminbi has programmable properties and can be loaded with smart contracts for conditional payments, guaranteed payments, etc. More complex payment functions empower inclusive finance and green finance innovations such as “agriculture, rural areas, rural areas” and “supporting small branches”. For example, the digital renminbi load single-purpose prepaid card management smart contract will help card issuers improve efficiency and better serve customers, and also help solve industry problems such as embezzlement of funds in the field of prepaid cards and infringement of consumer rights. In the future, the digital renminbi will actively empower external parties, give full play to the enthusiasm and creativity of participants from all walks of life, explore a sustainable development model in which social entities participate together and compete for the best selection, and meet the needs of financial service products with the widest user groups and richest scenarios .

The fourth is to maintain fair competition in the payment market in the digital RMB pilot program.

On the one hand, digital renminbi will provide fair access opportunities and unify infrastructure for the innovative development of different payment service institutions, and promote market competition to select the best; on the other hand, use the legal position of digital renminbi to break institutional barriers and tools in the payment market Barriers and platform barriers to realize full-scene payment in digital RMB and improve the accessibility of retail payment services and the level of total social welfare. At the same time, according to different dimensions, there are various types of digital renminbi wallets, such as different levels of wallets with tiered limits, individual and public wallets opened by different entities, software and hardware wallets with different carriers, and subordinates with different ownership divisions. Mother wallet and so on. Through these wallet combinations, a digital renminbi wallet matrix system is formed, which brings greater innovation space for various market institutions to design diversified and personalized payment products, and meets the needs of market entities for multi-scenario, differentiated, and characteristic financial innovation. .


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