Central Bank： Digital RMB follows the principle of ＂small amount anonymous and large amount traceable according to law＂
On July 16th, the People’s Bank of China (hereinafter referred to as the People’s Bank) issued the White Paper on the Research and Development Progress of Digital RMB in China. The White Paper mentioned that the design of digital RMB takes into account the advantages of both physical RMB and electronic payment tools, which not only has the characteristics of settlement and anonymity, but also has the characteristics of low cost, portability, high efficiency and difficulty in counterfeiting. Mainly consider the following characteristics:
1. Both account and value characteristics. Digital RMB is compatible with three ways: account-based, quasi-account-based and value-based. It adopts variable denomination design and realizes value transfer in the form of encrypted currency strings.
2. No interest is paid. Digital RMB is located in M0, which is consistent with the physical RMB belonging to M0 category, and no interest is paid to it.
3. Low cost. Consistent with the management of physical RMB, the People’s Bank of China does not charge the designated operating institutions for exchange and circulation services, and the designated operating institutions do not charge individual customers for the exchange and redemption of digital RMB.
4. Payment means settlement. From the final point of view of settlement, digital RMB is loosely coupled with bank account, and fund transfer based on digital RMB wallet can realize payment and settlement.
5. Anonymity (controllable anonymity).Digital RMB follows the principle of "small amount anonymous and large amount traceable according to law", attaches great importance to the protection of personal information and privacy, 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, prevent digital RMB from being used for telecom fraud, online gambling, money laundering, tax evasion and other illegal and criminal acts, and ensure that related transactions comply with anti-money laundering and anti-terrorist financing requirements.The transaction information collected by the digital RMB system is less than the traditional electronic payment mode, and it is not provided to third parties or other government departments unless it is clearly stipulated by laws and regulations. The People’s Bank of China has set up a "firewall" for information related to digital RMB, and strictly implemented information security and privacy protection management through institutional arrangements such as special personnel management, business isolation, hierarchical authorization, post checks and balances, and internal audit, and it is forbidden to inquire and use it at will.
6. Security. Digital RMB uses digital certificate system, digital signature, secure encrypted storage and other technologies to realize the characteristics of non-repetition, non-illegal copying and forgery, non-tampering and non-repudiation, and has initially established a multi-level security protection system to ensure the safety and risk control of digital RMB throughout its life cycle.
7. Programmability. The programmability of digital RMB is realized by loading smart contracts that do not affect the monetary function, so that digital RMB can be automatically paid according to the agreed conditions and rules under the premise of ensuring safety and compliance, and the business model innovation is promoted.
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