The digital renminbi is only one step away from popularizing applications

At the China International Trade in Services Fair held in Beijing Shougang Park, more than a dozen institutions ranked second on both sides of the “Digital RMB Avenue” exhibition area. A yellow shared bicycle was parked by the Bank of China platform, surrounded by crowds. Unlike shared bicycles on the street, this car does not have a QR code on the handlebars and locks. Instead, words such as “digital RMB” and “e-CNY” are used. A staff member took out a card and lightly “touched” the lock of the car. With a click, the car lock bounced off; the staff locked the car and touched the car lock with a mobile phone. Unlock immediately.

There is no need to connect to the Internet, open a mobile app, or bind a bank card. You can unlock the shared bicycle with a “touch” of the card or mobile phone. Both the card and the mobile phone have a digital RMB security chip. The appearance of this card is similar to that of a normal bank card. , But added a small one-inch electronic ink screen, which can display transaction amount and balance information. Visitors can exchange cash for digital RMB visual chip wallet on the foreign currency exchange machine in the Shougang exhibition area for relevant experience.

This is the new digital RMB application that Meituan has developed in cooperation with China Unicom and Bank of China in the Shougang exhibition area of ​​the Service and Trade Fair: The NFC payment function based on the smart SIM card digital RMB hard wallet can be used to “touch” with a card or mobile phone. Switch on and off Meituan bicycles and complete the payment simultaneously.

The staff of the Meituan financial service platform said that this innovative application will greatly simplify the payment process for shared bicycles, improve the user experience, and also effectively solve the inconvenience of the elderly and other special groups in operating smart phones. “Using digital renminbi The technological advancement and inclusiveness of the application enable more special groups to cross the digital divide and enjoy the dividends brought by digital development.”

At this service trade fair, driverless digital renminbi payment experience vehicles, unmanned supermarkets, foreign currency exchange machines, digital renminbi payment terminals, visual chip wallets, smart watch wallets, and even paper chip wallets, glove wallets, and paper Watches, smart crutches for the elderly, etc., all show that the digital renminbi’s products for interacting with C-end users have gradually become more complete and diversified.

Close at hand

After 7 years of exploration, the popularization and application of digital renminbi has yet to come.

In 2014, the People’s Bank of China established a legal digital currency research group and began to conduct special research on the issuance framework, key technologies, issuance and circulation environment, and related international experience. In 2016, the Digital Currency Research Institute was established to complete the construction of the first-generation prototype system of legal digital currency.

In April 2020, the first application scenario of the digital renminbi will be implemented in Suzhou, and will be distributed to the employees of district-level agencies, institutions and directly affiliated enterprises in Xiangcheng District, Suzhou in the form of transportation subsidies. Since the first digital RMB red envelope pilot in Luohu, Shenzhen in October 2020, the central bank has distributed a total of 150 million yuan in red envelopes in Suzhou, the Beijing Winter Olympics venue, Chengdu, and Shenzhen’s Futian and Longhua districts. In November 2020, the digital RMB once again added six pilot projects in Shanghai, Changsha, Hainan, Qingdao, Dalian, and Xi’an, accelerating the increase in the geographical breadth and depth of the trials. The current pilot provinces and cities basically cover different regions such as the Yangtze River Delta, the Pearl River Delta, the Beijing-Tianjin-Hebei region, the central region, the western region, the northeast and the northwest.

On the evening of April 18 this year, Li Bo, then Deputy Governor of the People’s Bank of China, stated at the “Digital Payment and Digital Currency” sub-forum of the Boao Forum for Asia 2021 Annual Conference that there is no specific timetable for the launch of the digital renminbi, and emphasized that The development focus of the digital renminbi is currently mainly to promote domestic use.

At the press conference of the State Council Information Office on July 13 this year , Ruan Jianhong, Director of the Survey and Statistics Department of the People’s Bank of China, said that from the results of the preliminary pilots, the scope of digital RMB pilot testing in China has been expanded in an orderly manner, the application model has continued to innovate, and the overall system operation has been stable. .

At present, the digital renminbi has gradually moved from a purely offline scenario to the integration of “online + offline”. As an innovative technology that digitizes paper currency and surpasses electronic money, digital renminbi has the legal compensation of sovereign credit and dual offline payment. Convenience and traceability of directional circulation. Dual offline payment is a prominent feature of digital renminbi, and it is also an important difference between digital renminbi and other mobile payment methods. It can satisfy consumers in remote areas with weak network environments, as well as airplanes, underground parking lots and other non-network or weak network situations. Payment needs.

At this service trade conference, the new pilot application scenarios exhibited by ICBC are all related to green travel: Beijing subway that supports digital RMB QR code and NFC payment, Xiong’an bus that supports dual offline payment with hard wallet, and the country’s first A dual-carbon platform “Qing Carbon Bank” with digital RMB settlement. As of August 29, ICBC has opened nearly 15 million digital renminbi personal wallets and more than 1.9 million public wallets, achieving market leadership; piloting more than 360,000 digital renminbi application scenarios; establishing digital renminbi wallets with nearly 60 interbank banks RMB strategic cooperation.

“ As of June 30, 2021, there have been over 1.32 million pilot scenarios for digital RMB, covering life payment, catering services, transportation, shopping and consumption, government services and other fields. More than 20.87 million personal wallets and 351 corporate wallets have been opened. More than 10,000, with a total of 70.75 million transactions and an amount of approximately 34.5 billion. “In July 2021, the “China Digital RMB R&D Progress White Paper” released by the People’s Bank of China’s Digital The top-level design, function research and development, system debugging, etc. have basically been completed. Following the principles of stability, safety and control, innovation and practicality, some representative regions are selected to carry out pilot tests.

Security chip

On the platform of the Ant Group, the staff exhibited a smart badge called “Payment Terminal with Security Chip”. When the smart badge is used for payment for the first time, press the side button of the badge, and it will A QR code pops up. After scanning the code using the Alipay App, the user opens the digital RMB smart device applet to bind and transfer digital RMB in and out. Tap the side button again, the payment code will pop up, and the merchant will use the collection device to scan the code to complete the payment. The logic behind it is that the role of the digital renminbi “dual offline payment” is to not only successfully realize the payment, but also to ensure that the transaction between the two parties is safe through technical means when neither the receiving party nor the paying party has a network. Dual offline is an important direction of the digital renminbi innovation scenario, which completely breaks away from the network’s constraints on mobile payment behavior.

“Digital wallets are the carrier of digital renminbi and the medium for reaching users.” According to the “White Paper on China’s Digital Renminbi Research and Development Progress”. At the booth of Bank of China, digital renminbi has visual chip wallets, smart e-certificate wallets, bracelet wallets, smart watch wallets, and even glove wallets, fingerprint chip wallets, paper chip wallets, etc. for payment; ICBC demonstrated a large screen voice Broadcast wallets, paper watches, access control card pendants, blind watches, liquid silicone mobile phone cases, elderly smart crutches, even IC card holders, Bluetooth headset cases and other wallets; Postal Savings Bank displayed visual card hard wallets, wearable hard Wallets, special-shaped wallets, full-featured hard wallets, etc.

“The core difference between digital renminbi and WeChat and Alipay is that digital renminbi also has a set of hard wallets that can directly support offline transactions.” On September 3, Ziguang Tongxin Marketing Vice President Zou Zhongren explained at the Service Trade Fair that offline transactions should be supported. , There must be a security chip to ensure secure transactions and communications. Tsinghua’s security chips are more to solve security and communication issues in offline transaction scenarios. Tsinghua Unigroup is also developing security chip solutions for soft wallets, such as mobile phones. If the wallet is at risk of attack or cracking, it can be protected by a hardware security chip.

Therefore, among the hard wallets displayed by many banks, the core lies in the IC card security chip based on the function of superimposing digital renminbi.

“From our point of view, the essence is the same, but each bank has its own application scenarios, and each bank has a model that is easier to promote. According to different application scenarios, there are different forms of expression, and the core is a security chip. Protect it inside.” Zou Zhongren said that Ziguang Tongxin showed four types of hard wallets on the spot: card type. The security chip is placed in the card, some have a display screen, and some have biometrics. Related to mobile phones, the security chip is placed directly in the mobile phone. Nowadays, it is common to cooperate with telecom operators on SIM cards. Wearables, some are gloves, some are wristbands. Receiving terminals also have a security chip inside, and a storage wallet is required to collect money.

The dual offline payment transaction of digital renminbi relies on hardware wallets, and the payment device must have a built-in SE security chip that reaches a certain level of security encryption. At present, Tsinghua Unicore Digital RMB solution, in terms of transaction speed, deeply optimizes the algorithm, which speeds up offline transaction performance by 30%, and can complete the flash payment with one touch. In terms of security protection, it has passed the international CC EAL6+ security certification, which is safe The level of protection is world-class, which can guarantee the security of the entire process of sensitive information transmission and transactions; in terms of reliability, the user space is large, the number of erasing and writing is up to 500,000 times, and the data retention time is up to 25 years, which can provide maximum long-term Effective and long-lasting products and services. At the same time, the program supports international and national secret double algorithms, adopts memory encryption storage, bus encryption storage, electrical environment monitoring, counter-power analysis and anti-fault injection technologies, and can establish a set of comprehensive guarantees for safe storage, safe operation, The trusted security mechanism of secure connection meets the high standards and strict requirements of digital renminbi hardware wallets for transaction, security, and reliability.

It can be seen at this service trade conference that the digital renminbi is gradually improving both in technology and application scenarios. On September 7, the 2021 Service Trade Fair has come to an end. The time for the official landing of the digital renminbi may be close at hand, and its exploration journey has just begun.

Regarding the next step of the digital renminbi, the “White Paper on China’s Digital Renminbi Research and Development Progress” shows that “according to the preliminary pilot test work, combined with the development plan and local characteristics of the pilot test area, the coverage of the pilot test application scenarios will be further expanded, and the specific pilot area will be realized. Full coverage of the application scenarios within, build a digital renminbi ecosystem, continue to explore new models of digital renminbi applications that are compatible with the economy and society, and promote the deepening of the pilot work. At the same time, the test plan is dynamically improved based on practice, and the All sectors of society work together to give full play to the advantages of all parties and continuously optimize the design of the digital renminbi system.”


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