Loan currency is almost a representative of territorial sovereignty. How should the virtual currency (DC/EP) replacing M0 be “forged”?
In mid-April, the Virtual Currency Research Office of the Central Bank responded to the progress of the Internet explosion detection, saying that at this stage, the data China’s RMB product research and development work has been properly promoted, and the data China’s RMB management system is persistent in two-tier operation, M0 replacement, and controllability.
Under the prerequisite of secret name, the basic work of overall planning, specification formulation, product research and development, joint debugging and testing, etc. is carried out.
In the current session, the central bank virtual currency (DC/EP) will give priority to conducting internal closed demonstration site testing in Shenzhen, Suzhou, Hebei Xiong’an, Chengdu and future Winter Olympics scenarios.
(DC/EP) was led by the central bank
In mid-April, the 21st Century Economic Development Report reported that virtual currency (DC/EP) was led by the central bank. Every financial institution has already carried out tests on landing scenarios, and some have already been used by internal employees.
For payment scenarios such as the payment of party dues, Suzhou City and other places will also test transportation expenses to be distributed in the form of virtual currency.
The latest news about China’s digital currency at this stage, the organization of virtual currency (DC/EP) demonstration sites includes the four major state-owned commercial banks of industry, agriculture, China, and the construction of the country, and the three major operators as well as Internet companies such as Alibaba and Tencent.
But this kind of information content cannot analyze the “look” of virtual currency in the future. The Central Bank Virtual Currency Research Office, Alipay Wallet and other organizations participating in the development and testing of central bank virtual currency products applied for patent instructions. The latest news of China’s digital currency showed a dialog box for viewing virtual currency.
Central banks in many countries have just started testing Virtual Currency
Central banks in many countries around the world have launched virtual currencies for the first time.
On February 13, the German Central Bank announced that its central bank’s virtual currency electronic device Krona (e-krona) test was the first in the world. The bank previously stated that the central bank’s daily task is to promote a safe and reasonable payment platform. If in the future most homes and businesses no longer use cash as a payment method, this daily task is likely to be even more difficult, so we must consider which roles should be played in an eternal world of data.
On April 3, the Bank of Korea announced that it will carry out advance preparations for the central bank’s virtual currency CBDC design plan, technical verification, workflow analysis, and information consultation at the end of December this year. If the technical planning is sufficient, it will be completed in January 2020. In December, a small-scale demonstration site test was carried out.
The Central Bank of the Netherlands also announced a solicitation order for the CBDC pilot application plan. The latest news of China’s digital currency will be announced before July 10 this year. A maximum of 10 plans will be selected to carry out the next step of the experiment.
According to the summary of CICC Securities, at this stage, several my country, including the Netherlands and Japan, have released their central bank virtual currency test report templates or plans.
Earlier in January, the IMF also established that virtual currencies are one of the top priorities of this year.
The Bank for International Settlements and the Central Bank of Australia, the Bank of England, the Bank of Japan, the European Central Bank, the German Central Bank and the Swiss National Bank mutually established central bank work. Group to conduct product development of CBDC application examples.
In February 2020, the Federal Reserve announced that it has conducted scientific research on the central bank’s virtual currency, but has not decided whether to release data in US dollars.
However, the understanding, application purpose, and key technologies of virtual currencies in central banks around the world are not the same.
For example, unlike my country’s central bank virtual currency (DC/EP) and the Bank of England virtual currency (CBDC), the German central bank virtual currency (e-krona) is built on the basis of blockchain technology, and its application purpose is to do It is not compatible with “dual offline” to fill cash.
However, the two-tier structure is used as in my country’s virtual currency, while the Bank of England uses a single-sided structure. The goal of domestic virtual currency is to complete a competitive payment platform.
Virtual currency in patent rights
Regardless of what the “look” of the virtual currency will be in the future, for customers, the “change wallet” of mobile payment such as Alipay wallet and WeChat payment is likely to be the same as the application experience of “virtual currency”, but The idea behind him is completely different.
“The mobile payment method is essentially only a means of payment. It is a whole process of informatization management of the current legal currency.
It cannot be called a virtual currency in a strict practical sense.” April 22, 2020 In a patent issued, if Alipay wallet is stated.
In addition to the four major banks, Alibaba.com and Tencent also participated in the product development and testing of virtual currency. According to the database of the State Patent Office, journalists of the 21st Century Economic Development Report found that there are currently 694 patents related to virtual currencies. Among them, the “Central Banking Department” organization has the largest number of applications, with a total of 84 applications, and Alipay has applied for 5 applications.
Before the announcement of virtual currency, the patents applied by the central banking organizations, the four major banks, Alibaba.com and Tencent who participated in the research and development and testing of virtual currency products are the most “truthful” methods for understanding virtual currency.
Regarding what virtual currency is, the Central Bank’s Virtual Currency Research Office emphasized in a patent that the virtual currency wallet is a new and upgraded design, which is different from the wallet based on the account and the similar BTC.
The total wallet of tokens that has no use value support point and sales organization management method is only a real substitute for traditional commodity loans, payment and support points for other financial industry and business service requirements, and an intelligent entity toward the use of virtual currency Wire money clip.
Can the current payment solutions, BTC, etc. be regarded as virtual currency?
The current payment solutions, BTC, etc. cannot be regarded as “virtual currency”.
The Virtual Currency Research Office of the Central Bank stated in the patent statement that the current virtual currency technical specifications have some difficulties, such as the inability to apply the real virtual currency issued by the data currency issuing organization, and there is no system software interaction and browsing system.
BTC is used as The personal quasi-virtual currency wallet of tokens has an excessively single function, insufficient storage security, and only operates in a closed chain on the chain, and cannot be used very well in the current financial information services and trading scenarios.
Alipay Wallet expresses the virtual currency distribution system in the patent right. Alipay Wallet stated that virtual currencies are generally sold or authorized to be sold by the central bank, with the technicality of information theory as the technical support point, and the legal currency expressed in the form of data encryption digital string which means the actual amount.
Compared with traditional mobile payment, virtual currency itself is legal currency, and it does not have to be associated with an electronic account. Therefore, virtual currency is not only a means of payment.
Alipay Wallet stated that according to the current rules and regulations for the sale of virtual currencies, it generally follows a two-tier promotion management system from the central bank to the operating organization; among them, the operating organization is generally the banking industry, third-party payment organizations, and other organizations that have the power to sell virtual currencies.
The operating organization can apply to the central bank for a credit line of virtual currency, and according to the credit line obtained by the application, the virtual currency can be “sold” based on the external encryption machine deployed by the central bank in the operating organization, and then presented to the user with the data information loan.
For currency-related exchange service projects, the credit line for sale generally lies in the reserve credit line paid by the operating organization at the central bank.
The medium of Chinese virtual currency (DC/EP) is a virtual currency wallet
Advantages of the Central Bank’s Virtual Currency Research Office Mu Changchun previously stated in an online public course that virtual currency is replaced by banknotes, and its function and characteristics are exactly the same as banknotes, except that the shape is intelligent. “If you and my mobile phone both have DC/EP digital wallets, you don’t even use the Internet.
If the mobile phones have electricity, you can transfer the virtual currency in one person’s digital wallet to another person by touching the two phones. ”
He said that DC/EP will not harm the influence of Alipay wallet and mobile WeChat. At this stage, Alipay wallets and mobile WeChat are also using Chinese renminbi for payment, that is, payments are made in banking deposits and loans.
After the central bank’s virtual currency was released, it was only exchanged for the data of the Chinese renminbi, that is, the central bank’s savings and loans were used.
Although the payment methods have changed and the role has been improved, the methods and scenarios have not changed.
As a customer, a certain operating organization must be selected to activate a virtual currency account, so that the wallet server of the operating organization will supervise and control the customer’s account.
Also, the virtual currency wallet account is likely to be “classified”, and the “credit limit” of different levels is different.
Alipay Wallet stated in the patent specification that the virtual currency wallet that customers apply for activation is generally the virtual currency wallet with the least service item level.
Also, if the customer must enable a virtual currency wallet with a high service level, he must upgrade the wallet from the virtual currency wallet with the least service level.
After the advent of virtual currency (DC/EP), how to control it?
The Virtual Currency Research Office of the Central Bank stated in its patent statement that because the nature of data currency is a piece of dematerialized electronic information, virtual currency must have the ability to prevent counterfeiting, anti-counterfeiting, and copying to ensure complete commodity circulation. The safety factor in the process.
Therefore, according to a virtual currency authentication method and system software, it can prevent the virtual currency from being deliberately forged in the whole process of conversion and commodity circulation, and improve the safety factor in the whole process of virtual currency conversion and commodity circulation.
After the Chinese virtual currency is released by the central bank, under the two-tier promotion management system, how to prevent the sales organization from over-promotion and other problems?
The Virtual Currency Research Office of the Central Bank emphasized in its patent rights, so the virtual currency promotion system software was designed.
For example, before the promotion of virtual currency, it is necessary to push loan currency conversion requirements to the management center’s intelligent management system (such as the central bank), and only push the corresponding credit limit credentials when the loan currency conversion requirements meet the school inspection standards.
If virtual currency is “lost”, how to retrieve it?
The Central Bank’s Virtual Currency Research Office emphasized in its patent statement that the current virtual currencies, such as BTC and Ether, will not have loan currency migration during the whole process of commodity circulation.
They are just a set of continuous transaction details, that is, In other words, the current data currency circulation is basically buying and selling rather than loaning the currency itself, so it cannot meet the specific currency circulation regulations.
In addition, because the existing digital currency circulation method is anonymous, once it is lost, it is difficult to retrieve it, and it cannot satisfy the currency.
It is required by actual application and cannot be reasonably controlled.
To this end, technical solutions can be used to generate new digital currency, write off old digital currency, etc., to realize the circulation of digital currency between different user clients in the transaction process.
Alipay, etc. pay more attention to the supervision and safety of users. It stated in the patent description that if users violate regulations or illegal acts in economic activities, it is necessary to take certain restrictive measures on users’ accounts.
In the future, when regulators need to collect restrictions on the target account, they do not need to delay time to communicate with the operating agency, but directly send account restriction instructions to the wallet server to collect restrictions on the target account in time, and not give the target account. Leave a window period for evading punishment.
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