Digital RMB is a new technology that is beginning to be available in China. Is it the same as Alipay or WeChat?

While they do both perform the same function, they are different.

In reality, it is not the same.

Digital RMB is a new and exciting form of legal tender. It's a digital version of the traditional paper money. It has the same properties and functions as RMB, so it should be considered as a digital form of paper money. The topics that have been revealed so far in this project mainly focus on retail payment scenarios, covering many different fields, such as life payments, food service, transportation, shopping and consumption, government services and more. Multiple methods will co-exist and can meet the current consumer demand for convenient and efficient payment.

Digital RMB has four important features: Sweep Code Payment, Remittance, Payment Collection And Touch. Sweep payment is similar to the common payment platforms we're all used to like WeChat Pay and Alipay. In addition, digital RMB also supports "touch and go" payments which let people use digital RMB without network or bank account as long as both parties have DC/EP digital wallets on their phone. This feature is called "dual offline payment" because the transaction process is conducted between two phones with NFC (Near Field Communication) modules and UnionPay's touch-to-pay tags. For this reason, there are some obvious differences between mobile payments and digital RMB - mobile payments require a network connection while digital RMB does not. Also, recipients can't refuse to accept the money from an online transaction in the same way they can from other options.

You may have heard about digital RMB. It is very similar to WeChat Pay and Alipay, but in fact, it's not a monetary thing. WeChat and Alipay are financial infrastructures in a way that functions as wallets or bank cards. Digital RMB is a payment tool, it's money in your wallet. In the age of electronic payments, you can use WeChat and Alipay to make payments, except now there is the option of using digital RMB instead of bank deposit currency exclusively.

The digital RMB simply virtualizes our physical cash,payment gateway system architecture turning money from a real sense of holding it in our hands to a virtual currency that exists in the internet. In other words, the digital RMB gives Alipay or WeChat wallets a "look". It no longer has numbers and is instead seen as a "face" or "skin."

What's the reason you want to make a transition to digital?

As countries strive to complete the digital transformation, it is important that they consider establishing a legal digital currency. Legal digital currencies can improve transaction efficiency and safety, which would be beneficial for emerging countries. Furthermore, this will stimulate innovation in the financial sector by invigorating competition and heightening financial inclusion.

Following the issuance of a centralized bank's virtual currency

Is cash making a comeback?

A new report by the Bank for International Settlements states that central banks in various countries are considering issuing their own digital currencies, rather than attempting to replace cash with digital currency. Mu Changchun, a Director of the People’s Bank of China’s Institute of Digital Currency, said the central bank digital currency is for replacing banknotes and coins first and then replacing commercial bank balances by providing a central bank balance to each commercial paper account through (RMB) electronic payments from an account at the People’s Bank of China. It is universally agreed that even if a central bank digital currency is launched, it will take a long period to replace cash completely.


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