Zhou Xiaochuan also introduced the current technical solutions for digital currency electronic payment. In his opinion, there are mainly the following:
One is an account-based electronic wallet.
Two is a QR code used by merchants. Two-dimensional codes are constantly being upgraded. For example, standardized and dynamic two-dimensional codes have appeared. The technical content of the QR code itself is not too high, so some people say that the QR code may be out of the stage soon, but it is still a technology that can be widely used.
The third is NFC near-field contact transactions, such as ApplePay and Huawei Pay. These are all tools with great potential in the near future.
The fourth is bank cards in mobile phones, including credit cards and UnionPay QuickPass that are paid via POS machines, QR codes or NFC. They can be used for NFC payments such as Cloud QuickPass, ApplePay, and Huawei Pay, as well as other forms of payment. .
Five is a prepaid card, which is still considered by many institutions. One of the sources is Hong Kong’s Octopus electronic toll collection system, which is a very good product based on IC cards and has been successfully promoted and applied in Hong Kong. Carrying a card is lighter than carrying a mobile phone. Therefore, even if mobile terminals become the mainstream configuration of travel in the future, there may be payment tools such as prepaid cards. At the same time, the prepaid card can also be used in mobile phones
The above-mentioned DC/EP technology development ideas are not exactly the same as the current CBDC (Central Bank Digital Currencies) issued by the United States, the United Kingdom, France, Germany, Japan, Italy, and Canada, and it is not a CBDC system. An idea inside. The difference between the two is:
First, the second-tier organization of DC/EP actually owns the ownership of e-CNY, guarantees that it can pay, and also owns the corresponding systems, technology and equipment. Before formulating the ideas, the central bank had studied the situation of three note-issuing banks in Hong Kong. The Hong Kong Monetary Authority commissioned three note-issuing banks to print banknotes. In the mid-1990s, before BOCHK joined in, there were mainly two note-issuing banks, HSBC and Standard Chartered. For every 7 yuan of 8 Hong Kong dollars issued by the issuing banks, they had to be handed over to the gold tube. The bureau will pay $1, and the HKMA will issue a 100% payment certificate. From the perspective of the balance sheet, each debt is to issue banknotes, assets are reserves, and the central bank issues certificates of liabilities as liabilities. This is different from the central bank’s assumption of currency ownership and liability for liabilities.
Second, in order to support the stability of the currency, the People’s Bank of China does not engage in products such as Bitcoin. Instead, it adopts different methods, such as requiring 100% cash reserves, or issuing certificates like the Hong Kong Monetary Authority. In addition, it is not impossible for the central bank to issue a comfort letter, but the degree of support is different. The common people are willing to make 100% preparations for the institution and believe that the funds are safer. In the actual system, it is not that simple, because the 100% reserve is only for cash, which is M0 in China. Other quasi-cash types are not included, let alone M1 and M2. Therefore, the reserve certificate can only deal with cash, which is different from the system where banknotes are owned by the central bank.
Third, China’s central bank and second-tier institutions are not simply a wholesale and retail relationship. The responsibilities of the second-tier institutions include understanding customers, anti-money laundering, and protection of user privacy data. These compliance responsibilities are all in the second-tier institutions. If you simply compare the CBDC, everyone feels that the responsibility lies with the central bank, but this is not the case. In order to better maintain the stability of the system, and also for anti-money laundering, the central bank should have all transaction data, but it is only a backup and has no direct commercial interests.
article links：The main technical differences between DC/EP and CBDC
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