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Russian newspaper thinks digital RMB will go international

Pubdate:2021-04-06 14:35 Source: News Agency Click:
Now, in some Chinese cities, you can get a digital RMB wallet by applying to a state-owned bank, the independent of Russia reported. Restaurants, shops and transport companies are ready to accept the currency. The Chinese government announced a significant expansion of the digital RMB pilot in 2021.
According to the report, China has gone further than other countries in the application of national digital currency. Russia's concept of digital ruble is still in the stage of coordinating the interests of individuals, groups and departments.
Experts pointed out that digital RMB can go international in the future and compete with bitcoin and non digital dollar.
According to the report, customers of six Chinese state-owned banks in Beijing and Shanghai can apply to activate e-wallets that can handle digital RMB business. This has significantly expanded the scale of the pilot project to be launched in April 2020. Every citizen can apply to the bank and participate in the central bank's digital RMB mobile app by setting up a sub wallet.
According to the report, in the new test phase, the owner of digital RMB can pay up to 1000 yuan per day.
Previously, the Chinese authorities selected citizens who had the opportunity to try the financial instrument by wagging their horns. The winner received digital RMB ranging from 30 to 200 yuan, which could be spent in the participating stores. For example, the Suzhou municipal government distributed a total of 20 million yuan of digital RMB to the public in December last year.
In October last year and January this year, 50000 and 100000 citizens respectively participated in the digital RMB pilot activities in Shenzhen.
An international survey of central banks shows that about 80% of them are developing their own digital currency projects. At the same time, national digital currency is expected to be used to serve international e-commerce. According to the data of the U.S. e-commerce market research company, the scale of world e-commerce has risen from US $2.4 trillion (US $1 is about 6.5 yuan) in 2017 to US $4.2 trillion in 2020, and is expected to rise to US $6.5 trillion by 2023.
The report points out that while banks in other countries are still studying various ideas of issuing digital currency, China has determined that its new currency will not be related to the current cryptocurrency and blockchain technology.
China claims it is ready to participate in the development of international rules and technical standards for digital currency security.
According to the report, China's choice is related to the technical limitations of the existing cryptocurrency: many blockchain technologies are unable to support the required simultaneous transaction scale. China's approach means full state control of the new currency.
Vitaly mankovich, chairman of Russia Asian industrialists and entrepreneurs alliance, said: "many countries have proposed plans to implement digital currency, but today, China is undoubtedly a recognized leader in promoting digital currency."
"For the time being, China has not been able to achieve significant results in the internationalization of the renminbi: the renminbi's settlement ratio in the swift system is between 2% and 3%, he said. The digital RMB is a breakthrough initiative in technology, and its goal is to internationalize the local currency. "
The report points out that China will not solve its own financial problems in the way of the United States, which can use the property of the US dollar as an international reserve currency to issue US dollars almost indefinitely. China has actually shrunk its financial stimulus.
"China's one belt, one road", is likely to be converted to the national digital currency and then used in the settlement of the EU partnership, Mahnke Vecchi said. This will change the world's power structure and make the payment system in the US dollar a new direction for the renminbi. ”
(original title: Russian newspaper thinks digital RMB will go international)
Editor: Zhang Guanglin