What is Digital RMB?

The core of the digital yuan is that it’s a currency operated by central banks. It has existed since 1987, and China began to exchange the digital yuan with amounts similar to bank notes and coins in 2001. The essence of this topic was discussed at the summit by Mu Changchun's Digital Currency Research Office at the previous 2nd Shanghai Bund Financial Industry Summit.

Why would you launch your own digital currency?

Physical cash is expensive to produce and distribute, and it's riddled with the hassles of paper collection, counting, and processing. Taking a step into the digital age with RMB gives you safer transactions with fewer costs for printing, manufacturing, and circulation. Plus, there are no worries about data being forged; every transaction is just and fair because every word is locked into the blockchain with encryption.

With the popularity of online payment options like Alipay and WePay, young people in most second-tier cities no longer have access to cash. The replacement of traditional currencies with virtual currencies is becoming a reality.

According to "China's release of the digital RMBpayment gateway system architecture recited by government departments has become a vigorous exploration to follow development trends and maintain China's territory," an investment analyst for Broadcom Financial Industry Analysis, Dynasty Qi, says, "The brand-new Zhiyuan is a strong competitor in the long term."

3, pay digital yuan and alipay

What is the difference between WeChat Pay, Alipay and digital RMB? The three payments systems are all responsible for digital payments, but there's a big difference between them. Digital RMB provides China with a replacement for the physical M0 currency. Furthermore, no person or organization can refuse it when standards exist to govern payment.

The past few years have seen a rapid growth in the number of online payment methods, such as Alipay Wallet and WeChat Pay, but these methods are bundled with bank cards. For each individual transaction, you must use the BankDong accounting system for the highest settlement. However, digital RMB does not necessarily go this far because it is among the most fundamental forms of money in China. It exists immediately in its financial system instead.

In addition, the digital RMB is also non-profit, and there are no service fees deducted for using it. Of course, the use of digital RMB does not replace Alipay Wallet or WeChat Pay. The issuance of monetary policies may be based on long-term considerations.