With the emergence of digital RMB, will paper money be slowly eliminated in the future?

Recently, the emergence and progress of China's legal digital RMB has attracted widespread attention from the community. The People's Bank of China Digital Currency Research Institute said recently that the current digital RMB research and development work is advancing steadily, first in Shenzhen, Suzhou, Xiong'an New Area, Chengdu and the future of the Winter Olympics scene of the internal closed pilot test, the central bank of the digital RMB, will soon land.

What is the digital RMB? Simply put, the People's Bank digital currency is the electronic version of the yuan. When issued, it will be an equivalent replacement for the currency in circulation, which will not make the money go to waste and will not lead to inflation. From the consumer's intuition and experience, the use of the central bank digital currency payment, and the use of Alipay, WeChat payment, may not be much difference, is not the same, the use of the central bank digital currency payment, spend out of the digitization of the yuan, with the same as spending cash; and Alipay, WeChat payment is just a payment tool.

So far, the benefits of digital RMB seem obvious.

First, the process of payment and transaction of cash will have many problems, and it is increasingly difficult and costly to manage, and digital currency can easily skip these problems.

Secondly, digital RMB does not need to be tied to any bank account, getting rid of the control of traditional bank accounts.

Third, in the case of poor network signal, the currently used Internet banking payment function will fail, while the digital RMB, with the support of related technology, will not appear such a situation.

In addition, from a broader perspective, the issuance of digital RMB is also a shortcut to the internationalization of RMB.

In the pilot region of Suzhou, a portion of some people's wages will be paid out in digital currency. Within this month, staff at district-level organizations and enterprises in Suzhou's Xiangcheng District, whose salaries are paid through the four major state-owned banks, will complete the installation of the central bank's digital currency (DC/EP) digital wallet.

This is just the beginning, according to the plan, the next two to three years, the country will have 30% to 50% of the M0 by the central bank digital currency replacement, the basic realization of the central bank's digital currency nationwide promotion, the ordinary use of cash most of them will be replaced.

The current closed test of the digital RMB will not affect the commercial operation of the listed organizations, nor will it have an impact on the RMB issuance and circulation system, financial market and socio-economy outside the test environment.

These are my views, thanks for reading!

According to news reports, from April 2020, Shenzhen, Xiongan, Chengdu, Suzhou, part of the government and institutions of the wage subsidies will be issued in the form of digital currency, this shows that China's official digital currency, has been from the past sandbox rehearsal and technical research and development, and is now evolved to the stage of practical promotion, the electronic currency of the yuan, is already officially into the life of all Chinese people, digital currency, is officially into the All Chinese people's lives, digital currency, has been very concerned, the reason is also very simple, we have to deal with money every day, to transfer payment repayment and so on are used in the digital currency, but now the launch of the central bank-led digitization of the yuan, the digital currency of this thing in fact does not work fresh, many financial institutions around the world, the business community have engaged in their own digital currencies, such as bitcoin, and Facebook's Libra. There are also Facebook Libra coins, but these electronic currencies, most of them are not sovereign currencies, is decentralized currency, China is now put into use is the country's central bank issued by the national credit as a guarantee of the electronic sovereign currency, that this kind of legal electronic currency issued by the state is widely put into use, in the history of the first time, the digitization of the RMB is specifically used for what? According to the central bank's public information, the digital RMB is actually used to replace the M0 currency, M0 in the currency issuance of the significance of the circulating banknotes, simply put RMB digitization, is to realize the digitization of banknotes banknotes, the central bank no longer issue banknotes as the base currency, but directly issue virtual e-money, which is at the level of payment, the commercial banks and then exchange these currencies to the public. What about ordinary people, they use this electronic currency to make daily payments, in other words, this set of digital currency system, is a thorough penetration of China's existing monetary system, from the base currency to the people's daily payments, the full range of penetration, but there are several advantages of doing so, such as electronic currency is more environmentally friendly, to save the cost of currency issuance, such as low use of more convenient and efficient, etc., at the same time, it is convenient to The problem is that it is not easy to get to the bottom of the problem.

I think that this issue should be changed to "electronic money, paper money will gradually die out" may be more reliable.

First of all, it is important to note that the e-money we are talking about here is not a digital currency like BTC or ETH, but an e-money like DCEP, which is a governmental haircut, and secondly, although e-money has a variety of benefits, it is undeniable that there are still a lot of people who don't have the conditions to use e-money (e.g., they don't have a smartphone, or they have some special industries).

For example, if you're in a special industry, do you think he'd prefer paper money or e-currency?

In addition, the long-established habit of using paper money, the sense of solidity that people have when they own it, as well as certain security, anonymity, and other indescribable reasons, are destined to go hand in hand with e-money for a long time. Of course, if we take a long-term view, we still think that the electronic currency is inevitable.

In fact, this is a problem in the field of economics, paper money is an equivalent exchange into the product, with the human scientific and technological progress, the number of people using the increase in the number of lines of currency, the use of the number of daily huge, carrying paper money transactions is extremely inconvenient and unhygienic, but also to increase the considerable link with the amount of human labor, but also lead to people's work efficiency is low ... ...

I think with the emergence of digital RMB, the scope of the future use of paper money will be greatly reduced, but may not be completely extinct.

Look at the scope of use of WeChat and Alipay now, and the scope of use of digital RMB in the future will be roughly the same as the scope of use of WeChat and Alipay.

Let's look at the people who can't use WeChat and Alipay right now. The following people can't use WeChat and Alipay to collect and pay for RMB right now:

1. Older people who can't use smartphones. This group of people did not learn about the internet and computers when they were young and have difficulty using smartphones, so they will not use WeChat and Alipay to pay.

2. Children who can't use smartphones. Children who have not learned computers and the Internet, such as without paper money, can not buy things.

3. Foreigners come to China, there may be some of them can not use the Chinese smartphone and Chinese language, they also need to use paper money.

4. Illiteracy. Without paper money, this part of the population can't move an inch.

5. Disabled people who cannot use smartphones.

People who can't use WeChat and Alipay now won't be able to use digital RMB in the future.

The number of elderly people now will slowly decrease, but there will always be small children, foreigners, illiterates, and disabled people who cannot use Chinese smartphones. So the use of paper money will be greatly reduced in the future, but it may never be completely extinct.

I am a watery year

The digital RMB is not a virtual currency, nor is it an online payment or an e-wallet, but is a legal digital currency issued by the central bank based on national credit.

This speaks up some official, but the final interpretation of the right more inseparable from the official, that is, the digital yuan appeared, the existence of that is reasonable, people will gradually indifferent to the paper money, paper money is sure to disappear, this day will not be too far away. From the printing cost and public **** health considerations, will be a major progress of monetary civilization.

With the progress of science and technology, the new civilization to replace the old civilization, the disappearance of all will be placed in the museum archives, when the banknotes and paper disappeared in the human race, the descendants of how to archaeological civilization before the twenty-first century, think of these I do not know when the joy or sadness.

With the continuous development of society, technology also continues to progress, now go out shopping, there is no need to carry a wallet or a bank card, only need to bring a cell phone on the line. The emergence of mobile payment methods has brought a lot of convenience to everyone's life. We live in an era of progress all the time, the first out of the shopping is to use paper money cash, and now out of the shopping is to use QR code. In the future, Alipay as well as WeChat these mobile payments will not be eliminated again? The central mom shouted Ma Yun and others, the digital yuan era is coming!

Technology is constantly improving, and so are our lifestyles and consumption habits. Now everywhere you can see the two-dimensional code, the major banks in order to improve their own efficiency, in the third-party payment inside the third-party payment also launched the UnionPay third-party payment method. But the development of the times is too fast, now the third-party payment also suffered a shock.

It is reported that the people's daily overseas version of a report, the report is: the People's Bank of China has said in public that China is developing a digital currency system, so the future "digital yuan" may meet with everyone. In addition, the report also said that in fact, since 2018, the central bank has begun to study the digital currency.

First of all, what is the difference between digital currency and Alipay and WeChat?

In fact, Alipay as well as WeChat is just an electronic payment method, and the money that people pay does not come from Alipay as well as WeChat accounts, but generally comes through bank accounts. To put it simply, the money in Alipay as well as WeChat corresponds to a banknote, while the digital currency itself corresponds to a banknote. Although the use of digital currency, as well as WeChat and Alipay payment methods feel almost the same, but the essence of the above there is still a big difference exists.

In addition, we have to understand that digital currency and virtual currency are not the same concept. The most familiar virtual currencies are the currencies that are recharged in various games, and these virtual currencies have no way of being converted into real money, and you need to use real money to buy virtual currencies in order to get them.

Many of the digital currencies in the world don't have a specific issuer, so they can be manufactured by anyone, and circulated around the world. But the digital currency issued by the central bank has only one issuer, the Central Bank of China, and this digital currency is backed by the national credit.

Secondly, will digital currency impact Alipay and WeChat Pay? Will the banknotes in our hands be devalued?

Once the central bank issued a digital currency, for Alipay and WeChat payment will certainly have a certain impact, after all, Alipay and WeChat payment function and third-party payment is actually similar. But it will not have a particularly big impact, because the central bank issued a digital currency of the commercial value of the relatively small, since the commercial scene application is very small, then the Alipay and WeChat and other third-party payment is not going to have too much impact.

As for the question of whether the banknotes in our hands will be devalued, we don't need to worry too much. Because the digital currency is only a form of currency, and will not cause the devaluation of paper money. And the size of the issue of digital currency is also controlled by the central bank, just a currency value symbol of the innovative mechanism.

April 16th. Already in Suzhou's Xiangcheng District districts organs and enterprises and institutions wages through the four major state-owned banks on behalf of the staff will complete the installation of the central bank's digital coin (DC/EP) wallet.

It is expected that in May, 50% of the transportation subsidies in their salaries will be issued in the form of digital coins.

And electronic money with a certain amount of cash or deposits from the issuer to exchange and get the same amount of electronic money so as to carry out transactions, electronic money can not rely on the network "double offline payment" that is, the two sides even if they are offline without the network can also carry out transactions

The central bank digital currency is bearer. The central bank digital currency is anonymous, but the flow of user funds can be traced, the record is transparent, which is not the characteristics of cash payments.

In contrast, Alipay WeChat's wallet inside the currency is not settled with the central bank currency, but with the commercial bank deposits currency for settlement, both in the legal status, security, did not reach the same level as paper money. They are digitized at the m1 and m2 levels and do not have the legal effect of the m0 level.

There is no concept of digital currency, and it always feels like there is no difference between digital currency and mobile payment now. Both are paid by means of the Internet of Things.

Money is a special commodity that acts as a general equivalent. From the exchange of goods to the earliest money appeared, and then to the emergence of paper money, money is also constantly replaced. History has appeared: shells, bronze knife coins, gold and silver, five baht, cross, silver tickets ...... modern paper money is also just one of the forms of money. It should be replaced by other forms of money as society develops.

It is only at this stage that the historical task of paper money has not been completed, and it should not be eliminated quickly. The shortcomings or loopholes of digital currencies or mobile payments have not been completely blocked, and the corresponding point of paper money is still very obvious. With the development of society and technology, paper money will be eliminated one day, but this time will not come soon.

Recently, the People's Bank of China's Digital Currency Research Institute said that the digital RMB will be tested in Shenzhen, Suzhou, Xiongan, Chengdu and the future Winter Olympics scenarios for internal closed pilot tests. In other words, the countdown to the issuance of digital RMB has already begun.

In the test areas, some of the institutional staff will complete the installation of the central bank's digital currency digital wallet in April, and in May, some of these people's salaries will be issued in the form of digital RMB, and these people will also become the first 'players' of digital RMB. Although it is said that the closed pilot test does not mean the official issuance, but through the closed test, the official issuance of digital RMB is also close at hand.

At present, there have been some pictures of digital RMB circulating online, from the pictures on the open, the function of digital RMB and the existing electronic payment is similar.

The issuance of digital currency means the emergence of a new generation of RMB, and the elimination of the old currency by the new currency is an inevitable law of social development, if there is no new issue of banknotes, it means that the banknotes will be the end of the digital RMB.

I don't know how the use of digital RMB is different from the current electronic transactions in terms of experience, and I look forward to the issuance of digital RMB.

In the near future, we will be able to use the legal tender issued by the central bank. Paper money will also be out of the history stage. So, we can speculate, from the sixth set of RMB, will it appear in front of the public as a digital currency? Will the existing fifth set of RMB be the last set of banknotes? If the digital currency is really rushed to issue out, then the market speculation, 500 yuan large amount of RMB may not have the opportunity to appear, right? Of course, these speculations, the specific issue time, but also need to wait patiently together.