Suzhou Civil Servants Paid in Digital Currency, McDonald's in Xiongan Accepts It

iFeng: 苏州已有人领取到数字货币形式的工资

Various tests and preparations for the central bank's digital currency are proceeding in an orderly manner. In Shenzhen, the internal testing of digital currency is being carried out in an orderly manner; in Suzhou, some civil servants have received part of their salaries in the form of digital currency; in Xiongan New District, 19 companies including McDonald's have begun to pilot digital currency. It can be expected that although it is not the same thing as Alipay and WeChat Pay, in the future digital currencies will be as ubiquitous as Alipay and WeChat Pay.

At present, the global central bank digital currency field is surging and competition is intensifying. According to data released by the Bank for International Settlements in January this year, 80% of central banks in the world are studying digital currencies, and 10% of central banks are about to issue their own central bank digital currencies. France, Sweden, and Thailand have begun to test digital currencies. Nearly 15% of gas stations in Venezuela have used petrocoins. The United States' attitude towards digital currencies has also changed from negative to positive.

As the world's second largest economy, every move in China's financial sector will affect global nerves, and digital currency is no exception. Yi Gang, governor of the People’s Bank of China, once stated that the development and application of legal digital currency is conducive to efficiently satisfying the public’s demand for legal currency under the digital economy, improving the convenience, security and anti-counterfeiting level of retail payments, and boost China's digital economy has accelerated development.

From the public's perception, digital renminbi can be "dual offline payment", as long as the mobile phone has electricity, even if the entire network is disconnected, payment can be realized. In addition, the current mobile payment must be bound to a bank card, and the central bank's digital currency does not need to be bound to any bank card, which can not only maintain the properties and main value characteristics of cash, but also meet the requirements of portability and anonymity. In terms of financial policy formulation and wealth management, the application of digital currency will enable the financial sector to have a stronger grasp of currency flows, the central bank's monetary policy will be more accurate, and the wealth management plans of financial institutions will be more targeted.

The construction of software and hardware for digital currency applications is speeding up, but there is no timetable for the official issuance of digital RMB. For the financial system, preventing and controlling risks is always the top priority. The first internal closed pilot tests in Shenzhen, Suzhou, Xiongan, Chengdu and future Winter Olympic scenarios are to test theoretical reliability, system stability, functional availability, process convenience, scenario applicability and risk controllability.

Even if there is no timetable, it is an indisputable fact that China's central bank digital currency is currently at the forefront of the world. People have reason to believe that China will accelerate on the "new track" of digital currency, which will bring us a higher-quality consumer experience, and will also more effectively promote the development of China's digital economy and reduce economic operations. Increased efficiency provides one more possibility.

China, along with other governments, will soon have real-time control over every economic transaction. Increased central planning occurs at the same time as information technology because planners see the illusion of complete knowledge. No doubt some governments will try again, with MMT madness a threat in the United States. Tyrants love it too. It will be easy for governments and corporations to shut off the accounts of regime dissidents, or any group of people they wish to injure, harass or destroy, such as business competitors.