Is there a competitive relationship between digital RMB and WeChat Alipay?

At the second Bund Financial Summit this year, Mu Changchun, director of the Digital Currency Research Institute of the Central Bank, gave the latest authoritative definition of digital renminbi: digital renminbi is a digital legal tender issued by the People’s Bank of China. The designated operating agency participates in the operation and exchanges with the public. Based on the broad account system, it supports the loose coupling function of bank accounts, which is equivalent to banknotes and coins, has value characteristics and legal compensation, and supports controllable anonymity.

Mu Changchun said that the issuance of digital renminbi is not achieved by administrative enforcement, but should be done in a market-oriented way. Mu Changchun believes that digital RMB does not have a competitive relationship with WeChat Pay and Alipay.

Why is there no competition? The following analysis:

WeChat and Alipay can replace cash and banknotes. There are several advantages:

1. Easy to use. You don’t need a wallet, you can pay via mobile phone or swipe your face.

2. It can automatically keep accounts and record transaction background.

3. Credit consumption is possible. WeChat Alipay backend docks with credit cards, and Alipay can also dock with Huabei.

Digital RMB does not seem to have the second and third advantages of WeChat Alipay. Especially point 3. Credit consumption has become common for people born in the 60s, let alone those born in the 90s, credit consumption plus installments are commonplace. We know that funds have a time cost. In addition to deferring payment of funds to obtain time benefits, credit consumption can also be exchanged for gifts, and personal credit data can be accumulated. Various benefits.

Obviously, digital renminbi does not have the function of credit consumption, or it is not suitable for credit consumption scenarios, and cannot automatically record the transaction background. Therefore, digital renminbi can hardly replace the usage scenarios of WeChat and Alipay, and there is no competitive relationship between them!

Moreover, The purpose of the launch of the digital renminbi was not originally to compete with WeChat and Alipay. Its launch was a strategic move.

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Since its birth, the digital renminbi has the genes of an international currency:

1. The anti-counterfeiting technology of the digital renminbi is advanced. False identification.

2. It is convenient for cross-border payments, without the need to go through the US-controlled SWIFT system, as long as there is a mobile phone, or even a data network.

3. Do not rely on bank accounts. Since it is more troublesome for foreigners to open a bank account in China, the use of digital RMB does not rely on bank accounts and is easy to promote.

4. It is convenient to carry large funds in and out of China. Compared with renminbi cash, digital renminbi does not take up space and is convenient to carry.

A derivative question: What if criminals abscond overseas with a large amount of digital renminbi, or use digital renminbi to transfer illegal income?

According to Mu Changchun: Digital RMB supports controllable anonymity!

For bribery and acceptance, if digital renminbi is used, it can be traced back. Therefore, most people dare not use digital renminbi to commit crimes. To take a step back, if you really use digital renminbi to transfer illegal income, you can set up a digital renminbi freeze under someone’s name in the central database. Although micropayments don’t need the Internet, large amounts of income and expenditure should require online verification, which is not difficult to do To. This is also the reason why the digital RMB does not adopt the blockchain architecture.

To sum up, the introduction of the digital renminbi is actually the next big game, and there is no WeChat and Alipay on this board.

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So, there is no competition between them.

Tags: Mobile payment digital currency Alipay