Fan Yifei Of The Central Bank Explains In Detail That Special Regulatory Requirements Should Be Formulated For Digital RMB

The digital RMB (DC / EP) is being closed for testing, causing high public concern. How does digital RMB reflect M0 (cash) substitution? How to adhere to centralized management in the process of issuing digital RMB? What role do commercial banks and other institutions play in the process of issuing digital RMB? On September 14, fan Yifei, vice president of the people's Bank of China, wrote an article on many hot issues: from the perspective of M0's fee system, digital RMB is a public product provided by the central bank to the public, and no interest is charged by the central bank for services such as exchange and circulation. From the issuing mode of M0, commercial banks should be responsible for the exchange of digital RMB to the public. In order to ensure the security and stability of the digital RMB system, it is necessary to carefully select commercial banks with strong capital and technology strength as the designated operating agencies to take the lead in providing digital RMB exchange services. Under the premise of centralized management of the central bank, taking into account the stability and innovation, we should explore the cooperation mode between the designated operating agencies and other commercial banks and institutions, and jointly provide digital RMB circulation services.

How to adhere to centralized management in the process of issuing digital RMB? Fan Yifei pointed out that in order to maintain the central management position of the central bank in the issuance of digital RMB, we must do the following: first, we should manage the amount of digital RMB as a whole, and formulate unified business standards, technical specifications, safety standards and application standards. Second, the overall management of digital RMB information, through the grasp of full trading information, the exchange and circulation of digital RMB are recorded, monitored and analyzed, so as to improve the issuance system of the central bank in the digital era. The third is to manage the digital RMB wallet as a whole. On the premise of adhering to the unified recognition system and anti-counterfeiting function of digital RMB, the central bank and the designated operating agencies will jointly develop the wallet ecological platform in the way of co construction and sharing, and realize their respective visual identification and characteristic functions. The fourth is to plan the construction of digital RMB issuing infrastructure, realize the interconnection of cross operating institutions, and ensure the stable and orderly circulation of digital RMB.

Fan Yifei also pointed out that the development and issuance of digital RMB basically conforms to China's legal framework. At the same time, digital RMB has digital characteristics, which is not fully applicable to the supervision rules of physical cash flow. Therefore, it is necessary to formulate regulatory requirements for digital RMB and do a good job in the construction of digital RMB circulation environment. Meanwhile, with the gradual maturity of digital RMB issuance and circulation system, relevant laws and regulations should be improved in time.

What role do commercial banks and other institutions play in the process of issuing digital RMB? Fan Yifei pointed out that under the quota management of the people's Bank of China, commercial banks, as the designated operation institutions, are responsible for opening different types of digital RMB wallets for them according to the recognition strength of customer information, so as to provide digital RMB withdrawal and redemption services. At the same time, as the designated operating agency, the commercial bank, together with other commercial banks and relevant institutions, undertakes the circulation service of digital RMB under the supervision of the people's Bank of China, and is responsible for the retail link management, so as to realize the safe and efficient operation of digital RMB, including payment product design innovation, scene development, market promotion, system development, business processing and operation and maintenance services. In this process, we should maintain a fair competitive environment and ensure that the market plays a decisive role in the allocation of resources, so as to fully mobilize the enthusiasm and creativity of all parties in the market and maintain the stability of the financial system.