Shulou(Shulou.com)11/24 Report--

At the beginning of 2022, digital RMB App was officially launched in Huawei App Store, Apple App Store and other channels. Although it is in a "pilot" state, it can be seen that the country is vigorously promoting legal digital currency.

More than a year has passed since it was put on the shelves, and there are still many people around me who have not used digital RMB, and some people know nothing about it. Some media even said some time ago that digital RMB has been defeated by third-party payment App.

Indeed, when the digital RMB was first launched, many media said that the digital RMB would replace Wechat and Alipay. In their view, digital RMB is more or less the same as other electronic banking payment methods, and the difference between the two is just the difference between who gives the money to.

But when we get rid of the general environmental perspective, such as SWIFT capital clearing and CIPS cross-border payments, and look back at the logic of digital RMB, is it really arm wrestling with third-party payments?

In fact, the digital RMB is fundamentally different from other payment App at the beginning of its design. The design logic of digital RMB is more close to physical wallets and ordinary consumers.

What exactly is the digital RMB solving the needs of consumers? Before using the digital RMB, we need to clarify two concepts:

First, the digital RMB is not equivalent to cryptocurrencies such as BTC and ETH. There are many speculators in these encrypted currency markets, the currency value fluctuates greatly, and some of them are even used for illegal purposes, which directly leads to the instability of the encrypted currency market. On the other hand, the digital RMB is a digital legal tender issued by the people's Bank of China, which is endorsed by the state and has valuable characteristics and legal compensation.

The second is to regard the digital RMB as the "digital wallet" of consumers. The "digital wallet" we are talking about here is not the balance of the so-called currency such as Wechat wallets and Alipay balances, but the digital currency that is really given the right of "legal tender".

When we try to look at the digital RMB from the perspective of physical wallets, many questions get different answers.

What are the conditions for the use of a physical wallet? First, it should be convenient to withdraw and put RMB.

Second, the use of this wallet should not be restricted by any environment or region.

Third, there is RMB with legal effect.

Under this logic, when we experience the digital RMB again, many seemingly complex functions become much simpler.

1. Digital RMB should be achieved: infinitely lower the threshold for use.

When we open the digital RMB App for the first time, we only need to log in with our mobile phone number to enter the digital RMB user interface. In the "my" menu on the far right, click Open / add Wallet to add a wallet account.

Image source: ByArsT this wallet account can be customized, such as "pocket money", "private money", "vegetable money", can be better distinguished.

Picture source: it is worth mentioning that the wallet account opened here is a real non-real-name four-category account. The permissions of the account are described in more detail in the digital RMB App.

The four types of wallet accounts only need a mobile phone number to open without real name verification. The upper limit of the balance is 10,000 yuan, and the upper limit of a single payment is 2000 yuan, which can already meet the most basic wallet needs of users.

But if you have a large demand for savings, you need a real-name system to open a third-or second-class wallet to meet the risk control needs of large transactions.

Image source: digital RMB App at first glance is a bit complicated, but if we regard the whole digital RMB App as a "big wallet", it will be much easier, each wallet account we can regard it as the "compartment" of the wallet, the money inside the App can flow in each "compartment" to meet the needs of distribution according to function, if the phone is lost, you can also log in to the account to report the loss of the wallet.

2. Digital RMB should be done: more convenient "saving and withdrawing"

If we decide to use this wallet, how should we put the money in it?

In the digital RMB App, there are two ways to save money in the wallet. The first is to bind a certain "compartment" to a bank card of your own to recharge. This "compartment" will be automatically upgraded (binding a bank card means a real-name system) to a second-class wallet.

Figure source: ByArsT and the other way is a little simpler, the digital RMB App will automatically transfer the bank App that has been installed in the mobile phone, such as Pudong Development Bank App and Construction Bank App, and transfer money to the "compartment" according to the operation in App. This operation will not upgrade the "diaphragm" to a second-class wallet.

Picture source: ByArsT as for "withdrawal", it is necessary to bind a bank card, upgrade the "interlayer" to a second-class wallet, after this operation, the future "withdrawal" is much more convenient.

(Ps. The "compartment" of different banks can also be bound to the bank cards of other banks)

Image source: ByArsT in addition, the "four types of wallets" in digital RMB can also transfer money more succinctly through mobile phone number / wallet number (payee's wallet ID, similar to bank card number).

3. Digital RMB should be achieved: faster "spending and collecting"

Since the essence of digital RMB is digital RMB, it must meet the convenient "collecting and spending", that is, many people confuse it with third-party payment at this point.

We are still analogous to the entity RMB, from barter in primitive society to general equivalents such as shells, gold and silver in ancient times, and then to value symbols represented by paper money, part of the function of currency is to indicate the value of goods and provide means of transaction.

The biggest feature of third-party payment is that it acts as a middleman, commonly known as "inverted master" or intermediary, by the middleman to pull strings and guide the buyer and seller to trade.

Photo Source: it's okay to be a "boss" from 9to5Google, but this "boss" still charges, which makes both buyers and sellers complain.

The transaction logic of the digital RMB is the transaction logic of the physical RMB, the buyer and the seller trade directly, and the currency circulates only between the two people.

It is worth mentioning that the collection and payment operation of digital RMB is also very interesting.

Picture source: ByArsT payment means to hand the money to the seller, and collection means to take the money over. This logic is incorporated into the digital RMB: when we swipe outward (up), the payment code appears, and when we collect the money, the inward (downward) swiping will show the collection code.

I like this operation.

4. Digital RMB needs to be paid under all kinds of environmental conditions.

For traditional third-party payments, due to the existence of middlemen, all payments need to be connected to the Internet, so that the "loser" can track every order account.

However, most of the time, the network environment of merchants is complex, especially in the crowded environment such as the vegetable market, the absence of the network frequently leads to a very poor payment experience.

Because of entity and government endorsement, traditional currency can ignore any environmental factors, as long as both parties agree on the value of the currency. Digital RMB continues this feature, providing the function of no grid and no electricity payment.

Want to achieve no network, no electricity payment function, at this time it is necessary to mention a concept, that is, "hard wallet". If there is no network and electricity, it means that this implementation path is completely out of the scope of App. At present, there are three solutions given by Digital RMB:

1) NFC

NFC refers to the near-field communication technology, which can exchange data close to each other without relying on the Internet. This is how the NFC bus card, which is used by many people, works. In addition, most of the mobile phones released now support ultra-low power NFC, and when the power is exhausted, they can also use the NFC function for a period of time to meet the needs of "no power" payment.

Image source: unsplash2) SIM card

Here we need to go to the business hall supporting the mobile phone card to replace the traditional SIM card with the new SIM card that supports NFC function. This kind of SIM card which supports NFC function can replace the bus card or bank card to make "no network, no electricity" payment.

Image source: from the network 3) hard wallet card

We can go to the bank counter to apply for a card dedicated to the digital RMB hard wallet and "transfer" the balance to the card through the mobile phone, then the card becomes the main body of some "compartment" of the wallet. you only need to swipe the card in the process of transaction (the experience is very similar to the traditional physical bus card or Hong Kong Octopus). There are a variety of card styles, and some even come with an ink screen that displays information such as balance and unscrubbed times (but how the card will be recharged is unknown).

Map source Pexels5, digital RMB can be done: to meet both the present and the future

With the continuous development of the Internet, online services have become a major trend. Previously, these platforms rely on third-party payment platforms to collect and pay through third-party payment platforms. So, what should we do in the digital RMB era when the online trading cannot be carried out in the traditional physical RMB?

The digital RMB supports the launch of the "wallet express payment" function, which means that digital RMB wallets can be pushed to various trading platforms, such as JD.com, iqiyi, DiDi, etc., to directly use legal tender for transactions, rather than through traditional third-party payment, eliminating the step of converting currency into numbers and then into RMB.

Figure Source: at present, ByArsT has more than 100 platforms connected to the digital RMB payment system, but it can only be used in specific consumption channels (for example, JD.com can only buy proprietary goods). In the future, more platforms will be connected to them and fully support digital RMB payment.

The general public is the end user of the digital RMB. Frankly speaking, at the beginning of the public test of the digital RMB, a large number of media were popularizing all kinds of so-called "big country strategies". For example, the use of digital RMB can better carry out unified management, maintain the stability of the financial system, and promote the international settlement of RMB. Whether the content of hundreds of media is poor or not.

Picture source: from the Internet, but in the final analysis, the general public is the end user of digital RMB, saying to ordinary people every day that the use of digital RMB can help the country but can not improve the utilization rate of digital RMB. The general public prefer "one thing is better than one thing". It is better to let everyone understand the usefulness and usage of digital RMB, and why it is in the interests of ordinary consumers.

From the experience of a period of time, the progress of digital RMB is relatively slow, in addition to the lack of publicity, it is also related to the popularity of digital RMB. For example: so far, there are still many middle-aged and elderly consumers because of conceptual problems, it is still difficult to accept digital transactions, and this is also the difficulty of the popularization of digital RMB. Under the premise that merchants have not fully popularized digital RMB collection, it is difficult to make a big change in a short period of time.

But the good news is that at present, more and more platforms are actively accessing the digital RMB settlement system, and the highway in Shandong Province joined the digital RMB payment not long ago.

In the long run, the advantage of digital RMB is more obvious than third-party payment, which can effectively prevent fraud, money laundering, high security, no transaction fee and other advantages, and even have certain convenience for overseas transactions in the future. In the foreseeable future, digital RMB will certainly become the mainstream mode of payment.

This article is from the official account of Wechat: non-objective Laboratory (ID:zhinan617), author: ByArsT

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