On July 16, 2021, the People’s Bank of China will hold a media briefing to introduce the relevant content of the white paper on the development of China’s digital renminbi. Fan Yifei, member of the Party Committee and Vice President of the People’s Bank of China, attended the briefing. The following is the actual record:

Luo Yanfeng: Good afternoon, friends from the media. Welcome to the media briefing on the white paper on the development of China’s digital renminbi. At present, the People’s Bank of China is organizing commercial institutions to steadily promote the research and development of China’s digital renminbi. With the orderly expansion of the scope of pilot tests, the attention of all sectors of the society is also increasing, hoping to have a more comprehensive understanding of the research and development of China’s digital renminbi.

At 3 o’clock this afternoon, the People’s Bank of China Digital RMB Research and Development Working Group released a white paper on the development of China’s digital RMB on the official website of the People’s Bank of China, official WeChat account, and official Weibo. , Including Chinese and English versions.

In order to let everyone better understand the relevant content of the white paper on the development of digital RMB, this afternoon we are pleased to invite Mr. Fan Yifei, Vice President of the People’s Bank of China, to introduce the research and development of digital RMB Situation, and answer everyone’s concerns.

Also present at the afternoon media briefing: Mr. Luo Rui, Director of the People’s Bank of China Currency and Finance Bureau, Mr. Mu Changchun, Director of the People’s Bank of China Digital Currency Research Institute, and People’s Bank of Currency Ms. Chen Jianxin, Deputy Director of the Bureau of Finance and Banking.

First, I would like to invite Vice President Fan Yifei to introduce the development of digital RMB. Fan Yifei: Friends from the media, Hello everyone. Under the leadership of the Party Central Committee and the State Council, the People’s Bank of China has steadily promoted digital currency research and development. At the end of 2017, it began to organize commercial institutions to jointly carry out digital RMB research and development experiments, and established a research and development working group headed by me. At 3 o’clock this afternoon, the People’s Bank of China Digital RMB Research and Development Working Group released the Chinese and English version of the first edition of the digital RMB white paper “The Development of China’s Digital RMB Research and Development”. The white paper includes introduction, R&D background, definition and target vision, design framework, possible impact and response strategies,Six parts including work progress. This is the first time that we have disclosed digital RMB research and development to the domestic and global systems. The purpose is to listen to the public’s opinions and suggestions on research and development work and strengthen communication with relevant parties. This does not mean that the digital renminbi will be launched soon. We may update it based on your opinions and R&D progress in the future. Below, I will briefly introduce the research and development of digital RMB and the relevant situation of the white paper from three aspects.

The first aspect is the significance and role of research and development of digital RMB. The white paper first introduces the R&D background, definition and goal vision. The main purpose is to explain the significance and role of R&D digital RMB. General Secretary Xi Jinping pointed out at the 15th summit of the G20 leaders at the end of last year that it is necessary to use technological innovation and digital transformation to generate new development momentum, create a favorable development environment for the digital economy, strengthen data security cooperation, and strengthen digital infrastructure. Build and propose to explore and formulate legal digital currency standards and principles in an open and inclusive way to promote the healthy development of the digital economy. The spirit of General Secretary Xi Jinping’s instructions has provided us with ideological guidelines and fundamental follow-ups for the development of digital renminbi. The research and development of digital renminbi has important practical significance and rich policy connotations.

One is the need to help the development of the digital economy. At present, technological innovation represented by the digital economy has become an important driving force for the development of growth momentum. To achieve high-quality development in China’s economy and society, it is objectively necessary for a new type of retail payment infrastructure that is safer, more versatile and inclusive as a public product. To further meet the diverse payment needs of the people, and to improve the level and efficiency of basic financial services, promote the smooth flow of the domestic cycle, and provide strong support for the construction of a new development pattern.

The second is the need to support the construction of a modern central bank system. The central bank is the issuing bank, the bank’s bank, and the national bank. In the digital economy era, the central bank, as a public sector, is obliged to maintain direct access to cash for the public, and to ensure the unity of accounting units under the conditions of the digital economy through the digitization of cash. At the same time, the central bank should maintain and improve the diversity of payment tools and support the fairness, efficiency, and security of the retail payment field.

The third is the need to actively participate in international financial reform and coordination dialogue. At present, the world pays great attention to the development form, development trend and related influence of digital currency. The People’s Bank of China explored the design rules of retail central bank digital currency through digital RMB research and development pilot, laying a practical foundation for participating in the international coordination dialogue of digital currency.

The second aspect is the core content of the digital RMB-related design. The core content of the white paper is to introduce the design framework of the digital RMB system. Digital RMB adheres to the design concept of “safety and inclusiveness, innovation and ease of use, and long-term evolution”, and comprehensively considers currency functions, market demand, supply mode, technical support, and cost-benefit design principles. Preliminary design ideas have been formed in terms of regulatory responsibility, technical route selection, regulatory system and influence.

First, digital renminbi is mainly positioned as a cash payment voucher (M0), and will coexist with physical renminbi for a long time. The digital renminbi is a digital form of legal tender issued by the People’s Bank of China, which is mainly used to meet the domestic retail payment needs. Both the digital renminbi and the physical renminbi are liabilities of the central bank to the public, have the same legal status and economic value, are supported by national credit, and have legal indemnity. The management method of digital renminbi is the same as that of physical renminbi. The People’s Bank of China does not accrue interest on them, and does not charge designated operating agencies for exchange and circulation service fees, and designated operating agencies do not charge individual customers for digital renminbi redemption and redemption services. .

Second, digital RMB adopts centralized management and two-tier operation. The People’s Bank of China is in a central position in the digital renminbi operating system. Responsible for issuing digital renminbi to commercial banks as designated operating institutions and conducting full life cycle management. Designated operating institutions and related commercial institutions are responsible for providing them to the public Digital RMB exchange and circulation services. At present, the operating institutions participating in the research and development of digital RMB mainly include ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank, Mobile and ICBC, China Unicom, Telecom and Bank of China have established joint project teams to participate in research and development,< strong>Ant and Tencent’s two Internet companies’ online merchants and WeBank also participated in the research and development. China Merchants Bank has also been approved to join recently.

Third, the design of the digital renminbi fully considers features such as convenience, security, inclusiveness, privacy, and compliance. In terms of convenience, digital renminbi is compatible with accounts and value features, and has programmability. It can realize digital renminbi online and offline full-scenario applications and meet the differentiated needs of users with multiple subjects, multiple levels, multiple categories, and multiple forms. In terms of security, the digital renminbi uses a variety of technologies to achieve features such as non-repeatable spending, non-illegal copy and forgery, non-falsification of transactions, and non-repudiation. A multi-level security system has been initially established.The full protection system guarantees the safety and controllable risks of the entire life cycle of the digital renminbi. In terms of inclusiveness, digital renminbi has the characteristics of loose coupling with bank accounts, payment and settlement, and low cost, which is conducive to further lowering the threshold for the public to obtain financial services, providing a wider range of groups and richer scenarios Provide legal tender. In terms of privacy, the digital renminbi attaches great importance to the protection of personal information and privacy, and follows the principle of “small amount anonymous, large amount traceable according to law” to meet the public’s demand for small amount anonymous payment services. In terms of compliance, the digital renminbi is subject to existing international standards for anti-money laundering and anti-terrorist financing and domestic legal requirements. At the same time, special regulatory requirements will also be formulated under the existing legal framework.

Fourth, through business, technology and policy design, ensure that the impact of the digital RMB on monetary policy, financial system and financial stability is minimized. In order to guide digital renminbi to be mainly used in retail business scenarios, reduce the impact on bank deposits, and avoid arbitrage and procyclical effects in a stressful environment, digital renminbi does not count interest, and digital renminbi wallets are designed hierarchically and categorically, and the upper limit of transaction amount and wallet balance are set separately Establish a big data analysis and risk monitoring and early warning framework to improve the predictability, accuracy and effectiveness of digital RMB management.

The third aspect is the future consideration of digital RMB research and development. Currently, the digital renminbi research and development pilot has made positive progress, but also faces some pressures and challenges. In the next step, the People’s Bank of China will continue to steadily advance the digital RMB research and development pilot in accordance with the “14th Five-Year Plan” plan, and not preset a timetable for launch, and focus on the following areas:

One is to expand the scope of the pilot program in a timely manner. Further expand the coverage of pilot application scenarios, achieve full coverage of application scenarios in specific pilot areas, and create a digital RMB ecosystem. At the same time, the scope of participating institutions and pilot testing areas will be expanded in combination with the actual research and development pilot work. The second is to study and improve relevant systems. Actively promote the revision of the “People’s Bank of China Law” and other laws and regulations. Research and formulate relevant management measures for digital renminbi, strengthen the protection of personal information of digital renminbi, and establish and improve a full-process security management system for the digital renminbi operation system. The third is to strengthen research on major issues. Deepen the research and evaluation of the in-depth influence of legal digital currency on monetary policy, financial system and financial stability, actively participate in the international exchange of legal digital currency, discuss the formulation of legal digital currency standards and rules in an open and inclusive way, and jointly promote the development of legal digital currency.

Luo Yanfeng: Now, please ask questions around the topic.

China Central Radio and Television (CCTV News) reporter: May I ask President Fan, we are more concerned about the progress of the digital RMB pilot program. I would like to ask what results have been achieved during the pilot process? What are the difficulties and challenges in the pilot promotion process?


Fan Yifei: Since the launch of the digital RMB pilot test, the People’s Bank of China, with the strong support of the party committees and governments of the pilot areas, has worked with participating institutions to plan the pilot program as a whole, carefully organize application tests, iteratively develop and operate the system, and explore The innovative application model initially verified the feasibility and reliability of the digital renminbi in theory, policy, technology, and business.

One is the orderly expansion of the pilot test scale. As of June 30, 2021, the number of invited whitelisted users in the digital RMB pilot program has exceeded 10 million, opened 20.87 million personal wallets, 3.51 million public wallets, and accumulated 70.75 million transactions with an amount of 34.75 billion. Yuan. The party committees and governments of all pilot regions regard the digital RMB pilot as an important starting point for promoting digital transformation, and actively provide support and convenience. Enterprises and individuals actively participate, earnestly implement the whitelist management measures, and actively feedback user experience and improvement suggestions. Participating institutions give full play to their own advantages, promote and manage whitelist users in a stable and orderly manner, and provide services carefully.

The second is the gradual expansion of application areas. As of June 30, 2021, there are over 1.32 million digital RMB pilot scenarios, both online and offline, covering wholesale and retail, catering, cultural and tourism, education and medical care, public transportation, government payment, tax collection Payment, subsidy issuance and other fields. Participating institutions combined with the actual conditions of the pilot areas to focus on creating distinctive and bright application fields, and initially formed a batch of reproducible and extendable digital renminbi application scenarios. Judging from the feedback from whitelist users, the digital renminbi has further improved payment efficiency and reduced payment costs. The general public, small and micro merchants and enterprises have felt the tangible convenience and inclusiveness.

Three applicationsContinuous innovation of the model. All parties concerned are actively exploring new services and new applications that are closely integrated with various innovative technologies. Local governments in most pilot regions have combined smart contract functions to launch digital renminbi red envelope-type consumption stimulus measures. Cooperate with relevant mobile phone manufacturers to research and provide new mobile payment experiences including dual offline transactions. Based on the smart visual card test, the hard wallet payment model separated from the mobile phone provides the possibility to bridge the “digital divide”.

Fourth, iterative optimization of the operating system. Based on the pilot operation status and user feedback, the People’s Bank of China and participating institutions updated and improved system functions in a timely manner, optimized business processes, and continued to improve the security, stability, and ease of use of the system.

As the pilot test gradually deepens, the digital RMB pilot work is also facing pressure and challenges. The first is to further enhance the convenience and inclusiveness of the digital renminbi, fully mobilize all sectors of society, and on the basis of clarifying the division of labor and positioning of all parties, to accommodate more service providers, and to further increase the coverage of the scene. The second is to continue to strengthen the security of the digital renminbi, establish a solid and reliable multi-level network protection system, cryptographic algorithm system, secure computing and storage system and other security systems, especially to strengthen the research and innovation of cryptographic technology to cope with the application of new technologies such as quantum computing . The third is to further observe and verify the impact of the digital renminbi, fully consider the objective situation of the interaction of factors such as R&D pilots, economic digital transformation, and financial technology promotion and application, and adjust and improve relevant designs in a targeted manner. The fourth is to establish and improve the regulatory rules and standards related to digital renminbi. In the next step, the People’s Bank of China will continue to steadily promote digital currency research and development in accordance with the overall deployment of the country’s “14th Five-Year Plan”.

Reporter from China Central Radio and Television (CCTV): I want to know what is the relationship between the digital RMB and the physical RMB? Will it replace the renminbi in real life? Luo Rui: Digital RMB mainly It is located in a cash payment voucher (M0), which is a liability of the central bank to the public with the physical renminbi, and has the same legal status and economic value. The People’s Bank of China Law authorizes the People’s Bank to issue renminbi and manage the circulation of renminbi. The revised draft of the “People’s Bank of China Law” (draft for comments) has further clarified that “the renminbi includes physical and digital forms.” From the perspective of economic value, the digital renminbi is equivalent to the physical renminbi and has basic functions such as currency value scale, transaction medium, and value storage.The digital renminbi will be issued in parallel with the physical renminbi, and the People’s Bank of China will make statistics, collaborative analysis, and overall management of both.

As a country with a vast territory, a large population, multi-ethnic integration, and regional development differences, China, social environment and residents’ payment habits, age structure, security needs and other factors It is determined that the physical renminbi has the irreplaceable characteristics of other payment methods. The physical renminbi will coexist with the digital renminbi for a long time.

Financial Times reporter: Everyone is very concerned about the technical route of the digital renminbi. The main reason is that the blockchain technology is not used in the digital renminbi system? If adopted, what are the specific applications? Mu Changchun: Blockchain It has the advantages of non-tampering and traceability of data, but has shortcomings in performance and scalability. It is more suitable for scenarios such as low concurrency and low sensitivity for asset confirmation, transaction transfer, and ledger verification. According to the technical characteristics and scope of application of the blockchain, the People’s Bank of China has explored innovative applications of the blockchain in the fields of trade finance, confirmation transactions, and transaction reconciliation, such as the trade finance blockchain platform and the digital bill trading platform.

According to the top-level design requirements of digital renminbi, the technical route design needs to be based on the principles of long-term technological evolution, practicality and efficiency. The first is to meet the requirements of high retail concurrency and centralized management by the central bank, and a centralized processing method should be adopted at the transaction level; the second is to promote fair competition and improve the efficiency of supervision; the third is to improve the efficiency of clearing and reconciliation, and realize the “Settlement” and efficient error handling; the fourth is to meet the anti-money laundering requirements while protecting privacy. Therefore, at the transaction layer of the digital RMB payment system, in order to support high concurrency and low latency, and to enable the public to directly hold central bank claims, a centralized structure is adopted, and all inter-institutional transactions are transferred through the central bank; at the same time, Designed a digital renminbi expression based on encrypted strings, retaining the features of security, anti-double-spending, and unforgeability. It can also load smart contracts with currency-related functions to promote business model innovation and become a catalyst for digital economic activities.. At the issuance level of the digital renminbi payment system, a unified distributed ledger is constructed based on alliance chain technology. The central bank, as a trusted institution, uploads transaction data to the chain through application programming interfaces to ensure that the data is true and accurate, and operating institutions can conduct cross-institutional Reconciliation, collective maintenance of ledger, and multiple backups. In order to fully embody the advantages of digital renminbi “payment as settlement”, the digital renminbi system combines the blockchain consensus mechanism and programmable smart contract features to realize automatic reconciliation and automatic error handling. At the same time, Using the irreversible feature of the hash algorithm, the blockchain ledger uses hash digests to replace sensitive transaction information to achieve data isolation between different operating institutions, which not only protects the security of personal data privacy, but also avoids the triggering of distributed ledger Of financial data security risks.

Phoenix Satellite TV reporter: The international community pays great attention to the operational safety and privacy protection of digital currency. I would like to ask how the security and privacy of the digital renminbi are considered? Fan Yifei: People’s Bank of China attaches great importance The security and privacy issues of the digital renminbi system take legal compliance and safety and convenience as the two most important design principles, which run through all levels of the digital renminbi design framework.

in terms of security. The first is to standardize the entire life cycle information security management of the design, development, and operation and maintenance of digital renminbi and related systems, and realize the characteristics of non-repetitive spending, non-illegal copy and forgery, non-tamperable transactions, and non-repudiation, and initially establish multi-level security protection System to ensure that the digital RMB operating system meets the requirements of high security, high availability, high scalability, high concurrency, high ease of use and business continuity. The second is to initially complete the construction of a multi-level joint prevention and control security operation system, establish an information security management system, focus on strengthening actual combat training, provide normalized security support for the digital RMB, strengthen emergency drills and resource protection, and effectively improve the prevention of emergencies Risk response ability. The third is to study new security technologies to improve the security level of digital RMB, introduce the research and application of emerging technologies such as distributed digital identity and zero trust, strengthen technical measures for personal privacy data protection, and enhance users’ sense of trust and security.

in terms of privacy. The digital renminbi system follows the principle of “small amount anonymous, large amount traceable according to law”, and fully considers the business risk characteristics and information processing logic under the existing electronic payment system to meet the public’s demand for small amount anonymous payment services. At the same time, pay attention to preventing digital renminbi from being used in telecommunications fraud, online gambling, money laundering and other illegal and criminal activities to ensure that relevant transactions meet anti-money laundering requirements. The collection of transaction information in the digital renminbi system follows the principle of “minimality and necessity” and does not collect excessively, exceptUnless expressly provided by laws and regulations, it will not be provided to third parties or other government departments. The People’s Bank of China has set up a “firewall” for digital RMB-related information, and strictly implements information security and privacy protection management through dedicated management, business isolation, hierarchical authorization, post checks and balances, and internal auditing, and prohibits arbitrary inquiry and use.

Reporter from China Business News: How do the layers of the digital RMB two-tier operating system work together? How are non-designated operating agencies involved?


Chen Jianxin: Digital RMB adopts centralized management and two-tier operation. As the first layer, the People’s Bank of China is at the center of the digital renminbi operating system, responsible for digital renminbi quota management, issuance and cancellation, inter-institutional interconnection and wallet ecological management, and supervises and manages digital renminbi exchange and circulation services.

Commercial banks with asset scale, profitability, risk management capabilities, cash service capabilities, payment service capabilities, and technological On the second floor, different types of digital renminbi wallets are opened for users based on the strength of customer information identification, and they take the lead in providing digital renminbi exchange and circulation services.

In order to ensure that the digital RMB is widely available, it is necessary to give full play to the active role of other commercial banks and non-bank payment institutions. Operating agencies work together to provide digital renminbi circulation services, including payment product design innovation, system development, scenario expansion, market promotion, business processing, operation and maintenance and other services to realize the safe and efficient operation of the digital renminbi system. In this process, the People’s Bank of China will strive to maintain a fair and competitive market environment, mobilize the enthusiasm and creativity of all parties in the market, give full play to the decisive role of the market in resource allocation, and jointly build a digital RMB ecosystem.

Shanghai Securities News reporter: In order to avoid the barriers to use caused by the “digital divide”, what are the aspects of the inclusiveness of the digital renminbi?

Luo Rui: The People’s Bank of China attaches great importance to finance for the people and financial benefits for the people. While meeting the public’s demand for digital legal tender, the digital renminbi will further contribute to inclusive financial services.

On the one hand, the digital renminbi has the characteristics of loose coupling with bank accounts, payment and settlement, and low cost, which are conducive to further lowering the threshold for the public to obtain financial services. The public who have not opened a bank account can enjoy basic financial services through the digital RMB wallet. “Payment is settlement” and low-cost features also help enterprises and related parties to enjoy payment convenience while improving the efficiency of capital turnover and further reducing payment costs.

On the other hand, the digital RMB wallet design is convenient for online and offline full-scenario applications, meeting the differentiated needs of users with multiple subjects, multiple levels, multiple categories, and multiple forms, and avoid Use barriers caused by the “digital divide”. Among them, the hard wallet implements digital renminbi-related functions based on technologies such as security chips, and provides services to users based on IC cards, wearable devices, and Internet of Things devices, which can help solve the problem of inconvenience in operating smart phones for specific groups such as the elderly and the disabled. In the design of future digital RMB products, the actual needs of specific groups will also be fully considered, and the difficulty of use will be reduced through a variety of technical means. In the next step, the People’s Bank of China will conduct in-depth research on the public’s demand for digital renminbi services and further enhance the inclusiveness of digital renminbi.

Bloomberg News reporter: What are the similarities and differences between digital renminbi and existing electronic payment tools? Compared with the existing electronic payment tools, what are the advantages of digital renminbi? Will digital renminbi replace existing electronic payment tools in the future? Mu Changchun: China has always supported The coordinated development of various payment methods, digital renminbi and general electronic payment tools are in different dimensions, complementary and different. The digital renminbi will provide the public with a new universal payment method that can increase the diversity of payment tools and help improve the efficiency and security of the payment system. Digital RMB is mainly based on the positioning of cash payment voucher (M0), which is mainly used for retail payment, with the purpose of improving the level of financial inclusion, drawing on electronic payment technology and experience and forming a useful supplement to it.

Although the payment functions are similar, the digital renminbi also has its own specific advantages: First, the digital renminbi is the country’s legal tender and is the asset with the highest security level. The second is that the digital renminbi has value characteristics, can transfer value without relying on bank accounts, supports offline transactions, and has the feature of “payment as settlement”. Third, the digital renminbi supports controllable anonymity, which is conducive to protecting personal privacy and user information security. Like the relationship with the physical renminbi, the digital renminbi will coexist with traditional electronic payment tools for a long time.

Beijing News reporter: How are the preparations for the application of digital renminbi in the Beijing Winter Olympics scene?


Fan Yifei: The Beijing Winter Olympics is a major landmark event held at the beginning of my country’s “14th Five-Year Plan” period. The People’s Bank of China attaches great importance to financial services for the Beijing Winter Olympics, and the establishment of a safe, convenient, high-quality and efficient payment service environment is an important guarantee for the successful hosting of the Winter Olympics. In order to implement the spirit of the important instructions of General Secretary Jin Ping “Meticulously prepare for the Beijing Winter Olympics”, and to further strengthen the organization and leadership of the digital RMB Beijing Winter Olympics scene pilot, the People’s Bank of China established a special pilot working group in February this year. Since the establishment of the team, it has cooperated with the Beijing Winter Olympics Organizing Committee and the governments of Beijing and Zhangjiakou to advance with all efforts, and positive progress has been made in the construction of pilot scenarios.

The digital RMB Beijing Winter Olympics scenario pilot mainly focuses on the payment service needs of the seven key areas of Beijing Winter Olympics: food, housing, transportation, travel, shopping, entertainment, and medical care , To create distinctive pilot scenarios and products to facilitate the use of digital renminbi payment services by the public at home and abroad. At the same time, through the Winter Olympics scenes to demonstrate the innovation results of application models, based on the construction of the technological and smart Winter Olympics, pilot deployment of innovative application scenarios such as unmanned vans, self-service vending machines, and unmanned supermarkets, and launched payment gloves, payment badges, Wearable payment devices such as Winter Olympics payment clothing. In particular, in order to facilitate overseas athletes, coaches, referees and tourists to China, the People’s Bank of China will guide participating institutions to launch APP-based wallet services and hardware-based wallet service solutions in accordance with the actual needs of overseas users. In the next step, the People’s Bank of China will scientifically study and judge the current challenges, steadily and orderly promote the construction of key application scenarios, and ensure that relevant people can obtain safe, convenient, stable and efficient digital RMB services during the Winter Olympic Games.

Luo Yanfeng: Thank you President Fan and distinguished guests. This concludes today’s briefing.