Fan Yifei, the central bank, explained in detail that the digital renminbi needs to formulate special regulatory requirements

The digital renminbi (DC/EP) is being tested internally, which has aroused great public concern. How does the digital renminbi embody M0 (cash) substitution? How does the digital renminbi adhere to centralized management during the issuance process? What role do commercial banks and other institutions play in the digital renminbi issuance process? On September 14, Fan Yifei, deputy governor of the People's Bank of China, wrote an article to explain many hot issues: From the perspective of the M0 fee system, the digital renminbi is a public product provided by the central bank to the public, and no interest is paid, and the central bank does not charge for services such as exchange and circulation . From the perspective of the M0 issuance model, commercial banks should undertake the function of exchanging digital renminbi to the public. In order to ensure the security and stability of the digital renminbi system, it is necessary to carefully select a commercial bank with relatively strong capital and technology as the designated operating institution to take the lead in providing digital renminbi exchange services. Under the premise of the central bank's centralized management, taking into account stability and innovation, explore the cooperation model between designated operating institutions and other commercial banks and institutions, and jointly provide digital RMB circulation services.

Bank Indonesia Governor: G20 meeting will discuss cross-border payment and central bank digital currency: According to news on February 17, the governor of Bank Indonesia said that the G20 meeting will discuss cross-border payment and central bank digital currency. (Golden Ten) [2022/2/17 9:57:13]

How does the digital renminbi adhere to centralized management during the issuance process? Fan Yifei pointed out that in order to maintain the centralized management position of the central bank in the issuance of digital renminbi, the following must be done: First, coordinate the management of digital renminbi quotas and formulate unified business standards, technical specifications, security standards and application standards. The second is to coordinate the management of digital renminbi information. By mastering the full amount of transaction information, record, monitor and analyze the exchange and circulation of digital renminbi, and improve the central bank issuance system in the digital age. The third is to coordinate the management of the digital renminbi wallet. On the premise of adhering to the unified cognitive system and anti-counterfeiting function of the digital renminbi, and in line with the principle of two-tier operation, the central bank and designated operating agencies jointly develop the wallet ecological platform in a co-construction and sharing manner. At the same time realize their own visual identity and characteristic functions. The fourth is to coordinate the construction of digital renminbi issuance infrastructure, realize cross-operating agency interconnection, and ensure the stable and orderly circulation of digital renminbi.

German authorities develop technology to allow investors to buy and sell securities on the blockchain in exchange for central bank money: German authorities have developed technology that allows investors to buy and sell securities on the blockchain in exchange for central bank money. The project is carried out by the Bundesbank in cooperation with Deutsche Börse and the German government debt agency. Commonwealth Bank said on Wednesday its solution was the first to allow those selling securities on the blockchain to receive their proceeds in an account at the central bank. Furthermore, the technology may soon be rolled out across the Eurozone, well before the ECB’s digital euro is launched. (Reuters) [2021/4/4 19:44:53]

Fan Yifei also pointed out that the development and issuance of digital renminbi is basically in line with my country's legal framework. At the same time, the digital renminbi has digital characteristics and does not fully apply the regulatory rules for physical cash circulation. It is necessary to formulate regulatory requirements specifically for digital renminbi and do a good job in the construction of a digital renminbi circulation environment. laws and regulations.

The central bank of Singapore hopes to place the Singapore dollar on the blockchain: The central bank of Singapore has begun to experiment with blockchain technology and announced the Ubin project, hoping to apply the blockchain to payment and securities settlement, with the ultimate goal of placing the Singapore dollar on the regional blockchain. On the blockchain, such a move will help strengthen Singapore's image as a financial center. [2017/11/24]

What role do commercial banks and other institutions play in the digital renminbi issuance process? Fan Yifei pointed out that commercial banks, as designated operating institutions, are responsible for opening different types of digital renminbi wallets for them according to the strength of customer information identification under the quota management of the People's Bank of China, and performing digital renminbi redemption and redemption services. At the same time, the commercial bank as the designated operating institution, together with other commercial banks and related institutions, undertakes the circulation service of digital renminbi and is responsible for the management of the retail link under the supervision of the People's Bank of China, so as to realize the safe and efficient operation of digital renminbi, including payment product design innovation and scene expansion. , marketing, system development, business processing and operation and maintenance services. In this process, it is necessary to maintain a fair competition environment and ensure that the market plays a decisive role in resource allocation, so as to fully mobilize the enthusiasm and creativity of all parties in the market and maintain the stability of the financial system.

(Editors in charge: Shan Zixuan (intern), Wang Zhen)

Tags：

SAND