Mu Changchun: Three major challenges facing the official launch of the digital RMB

Mobile Payment Network News: On November 3, at Hong Kong Fintech Week 2021, Mu Changchun, director of the Digital Currency Research Institute of the People’s Bank of China, shared issues related to digital renminbi.

Regarding the challenges faced by the official launch of the digital renminbi, Mu Changchun said:

First, accept the construction of the terminal. Although the current pilot project has been running quite smoothly, the construction of the acceptance environment is still in progress. On the one hand, it is necessary to seek to improve the user experience through a variety of smart and customized wallet options, as well as a wide range of use cases. On the other hand, it is necessary to reform and upgrade the acceptance system for all merchants.

Second, a sound security and risk management mechanism. Central bank digital currency is easy to become a target of hackers, so security is the primary task of system development. At present, the People’s Bank of China will continue to improve the security management of its operating system during the entire life cycle of the digital renminbi, including encryption algorithms, financial information security, data security, and business continuity to ensure system security and stability.

Finally, a clear regulatory framework. The latest “Law of the People’s Republic of China on the People’s Bank of China (Revised Draft for Solicitation of Comments)” has added the content of digital renminbi, “Renminbi includes physical and digital forms.” On the basis of updating the original laws and regulations, the digital renminbi also needs to set up separate regulatory measures and management methods to improve and supplement.

Mu Changchun also revealed that as of October 22, 2021, 140 million digital renminbi personal wallets and 10 million corporate wallets have been opened. The cumulative number of transactions reached 150 million, and the transaction volume was close to 62 billion yuan. Currently, 1.55 million merchants support digital renminbi wallets, covering public utilities, catering services, transportation, shopping, and government affairs.

Mu Changchun said that since 2014, the People’s Bank of China has established a special working group to study the central bank’s digital currency. In 2016, it established the Digital Currency Research Institute. In the same year, it was decided to adopt a two-tier operation model for the central bank’s digital currency, which was recognized by central banks. . Starting from the end of 2019, the People’s Bank of China has launched digital RMB pilot projects in Shenzhen, Suzhou, Xiong’an, Chengdu and the 2022 Beijing Winter Olympics. In November 2020, Shanghai, Hainan, Changsha, Xi’an, Qingdao and Dalian will join the pilot cities. middle.
According to mobile payment network, in July this year, the People’s Bank of China released the “White Paper on China’s Digital Renminbi Research and Development Progress” . Transportation, shopping and consumption, government services and other fields. More than 20.87 million personal wallets and 3.51 million public wallets were opened, and the total number of transactions was 70.75 million with an amount of approximately 34.5 billion yuan.

In contrast, since the second half of this year, the number of wallet openings, the number of transactions, and the transaction value of the digital renminbi have all achieved substantial growth.

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