At the “Innovation Summit 2021” held by the Bank for International Settlements (BIS), Mu Changchun, Director of the Digital Currency Research Institute of the People’s Bank of China, appeared to establish international rules for the digital currency (CBDC) issued by the central bank. suggestion. It also explained the structure of the digital renminbi. Coinpost reported this on the 5th.
Maintaining the monetary sovereignty and financial stability of the jurisdiction is one reason for the issuance of the CBDC, said Chang Chun, and said that a CBDC issued by one country should not interfere with the CBDC of another country. In the context of financial stability, it is also mentioned in the CBDC as a means of protecting a country’s monetary sovereignty from dependence on cryptocurrencies such as Bitcoin (BTC) or the US dollar.
Next, it is said that it is necessary to operate in accordance with international rules in related systems such as capital management and currency exchange systems. It also mentions international use cases, supervisory systems, and rules for information sharing.
Furthermore, it mentions the importance of interoperability among CBDCs in each country. In establishing an international payment system by CBDC, it is said that it is necessary to consider compatibility between digital wallets of various currencies.
They also pointed out that the flow of financial data and digital currency needs to be synchronized so that regulators can monitor whether transactions are legally compliant. He added that it is possible to build a foreign currency exchange platform that can be monitored through distributed blacksmithing (DLT).
The task ahead is to find a reasonable way to supply digital currency and operate it in a sustainable and stable manner as part of the international monetary system.
[Reasons for the development of digital renminbi]
He mentioned several reasons for the development of the digital renminbi.
First of all, while the popularity of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) is increasing, one of the reasons for the development is that concerns about national currency sovereignty have arisen.
Furthermore, the mobile payment market such as Alipay has grown into an important financial infrastructure. Financial stability may be adversely affected if financial or technical trouble occurs in such payment infrastructure. For this reason, the director explained that there was a demand for a system to back up the retail (individual/retail) payment system.
In addition, the objectives of the development of digital renminbi were to improve the efficiency of payment systems, enhance the capabilities of users, and provide basic financial services to the poor with many non-bank account holders.
[What is the digital renminbi system design?]
The system design states that in order for all retailers to accept digital renminbi payments, they must cross the barriers between the various payment platforms.
In addition, it is said that existing private payment platforms such as Alipay and digital yuan will coexist and cooperate.
It also predicted that it would be desirable to have functions that can be conveniently used by the elderly and the hybridized distribution in two forms: tokens and bank accounts.
According to Changchun, under this system design, various sectors (banks, AI companies, mobile terminal companies, IC chip companies, algorithm makers, etc.) are involved in the development of digital renminbi.
In China, demonstration experiments of digital renminbi are also actively conducted, and campaigns have been conducted in cities such as Shanghai and Beijing where citizens distribute digital renminbi and conduct shopping at stores.
(BIS) is a general study of “Innovation Summit 2021” and the number of people in the country in China.を提案. Digital human beings don’t know what to do.)
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