The familiar QR code payment method has made our lives much more convenient since it came into people's sight. When waiting for a bus, ordering food, picking up clothes, express delivery, or even buying things in a mall, you can use "face scanning" to check out by yourself. This "technological" operation method makes many people feel like they are in the future.

However, although the QR code payment model is convenient, it has gradually exposed various problems: such as payment security issues, such as the "out-of-control consumption" phenomenon that is basically obvious when swiping a card to pay, and the fact that it is not easy to get a refund after accidentally swiping the card more than once or clicking the "confirm" button in the QR code payment. This has caused people to begin to feel the "consumption trap".

In response to these issues, the People's Bank of China has long been eager to launch the digital RMB, hoping to allow people to experience convenience while also giving them a sense of security and feeling at home.

The advantages of digital RMB.

The digital RMB launched by the People's Bank of China is a smart contract. The biggest difference between it and the cryptocurrencies we are familiar with, such as Bitcoin and Ethereum, is that it adopts an issuance system that is in line with the current legal currency.

The digital RMB is issued by commercial banks authorized by the People's Bank of China and then used by the general public.

In fact, the digital RMB is essentially a token. It is a legal digital currency issued based on blockchain technology. Blockchain encrypts and stores data through cryptographic algorithms, and completes a complete set of data transmission and verification technologies through distributed databases and consensus algorithms.

Therefore, the digital RMB currency can be said to be a "no fight, no acquaintance" technology, and its purpose of creation is to be able to deal with data security, data privacy and other issues in the payment field of QR code payment and other non-cash payment tools.

Through the structural diagram after the birth of the digital RMB, it is not difficult to find that the middleman link has been abandoned, and the flow of funds directly forms a point-to-point docking relationship. For example, the buyer directly trades with the merchant and transfers the funds directly to the merchant's account. The merchant's account is no longer the original third-party payment service account, but a commercial bank's direct processing account. This reduces the links in the flow of funds to two.

Therefore, the digital RMB will bring people very obvious payment advantages in terms of payment.

When people are consuming, they can directly scan the digital RMB in their e-wallets to pay, which will greatly reduce the time cost and improve payment efficiency. At the same time, they can also restrain their consumption impulse under limited conditions, especially in the ever-increasing consumption desire of modern people. This makes people look forward to the "safety circle" of digital RMB.

At the same time, the digital RMB is universal and irrefutable. Whether online or offline, as long as the merchant accepts it, payment can be made by scanning the code, and the currency holder can be registered with real name, thus preventing illegal inflow of funds.

The non-rejectability is reflected in the fact that if a merchant accepts digital RMB payment, then he must accept the payment, thus eliminating the possibility of price increase or refusal.

At the same time, the digital RMB is also controllable. In terms of cash distribution, wages, bonuses, etc. can all be paid directly to bank cards, so you don’t have to worry about others saying that you don’t bring money with you and the food is not tasty.

Similarly, with digital RMB, you no longer have to worry about finding change or small shops not supporting card payments, and you also save the trouble of carrying cash. At the same time, these are great advantages in the payment process.

In general, digital RMB has many significant advantages over cash payment and QR code payment.

The current situation of promoting digital RMB is favorable.

The rapid economic development has directly promoted the rapid improvement of people's living standards, but along with it comes the cumbersome payment work.

Now many people have become accustomed to the convenience of cashless payments, especially in big cities, and they don’t feel embarrassed when they have no coins.

As cashless payment methods become increasingly popular, not only are payment methods being innovated, but the payment field is also being innovated.

The launch of the digital RMB by the People's Bank of China will strongly promote the digital transformation of cash and usher in a new era.

The birth of the digital RMB not only means that developed coastal cities will usher in a huge change in payment methods, but will also achieve equality in financial development among inland areas and eliminate the gap between regions.

At the same time, it will also help the transformation and upgrading of the payment industry as it strides forward towards financial technology innovation.

Third-party payment platforms, such as Alipay, WeChat, etc., will be impacted by the digital RMB and will create tremendous pressure within the ecosystem. Third-party payment platforms need to continuously improve their service quality and innovation in order to adapt to new market demands and developments.

The issuance of the digital RMB will further drive competition in the payment field, and in the payment process, there will be more room for competition among payment methods, and diversified payment methods will be extremely obvious.

While promoting digital currency, it also drives positive changes in the payment ecosystem. The development of intelligent payment models will be faster and more rapid, and the speed of promotion will also be faster.

The digital RMB has an impact on third-party payment platforms.

As the promotion of digital RMB has gradually accelerated, many third-party payment platforms have begun to research and develop digital RMB payment models. Although it is still in the discussion stage, the unswerving trend of digital RMB has already emerged.

This will have an impact on third-party payment platforms, because once the digital RMB enters the market as a payment tool, it will directly impact the payment systems of third-party payment platforms such as Alipay and WeChat.

With the popularization of digital payments in digital RMB, Wang Xiaoyun believes that it will gradually develop in a more intelligent direction. Although Alipay and WeChat will still be retained, their value should be a means for the four major banks to increase their value in the future.

The emergence of digital RMB will bring different business models and business models. Digital RMB will also be used more as a development platform for smart applications, and smart applications will expand to more fields.

The digital RMB will develop under a brand-new model.

The difficulties in promoting the digital RMB.

However, the birth of new things will definitely be beneficial to the construction of society and have certain advantages, but they will also definitely face corresponding challenges and difficulties in implementation.

During the promotion of the digital RMB, the public will face unfamiliarity with digital currency, and the integration of China's numerous financial infrastructures will also face a wait-and-see attitude.

However, when faced with these problems, we will definitely find some solutions thanks to the efforts of relevant personnel and the government.

In the future, the digital RMB will not only be a circulating digital payment currency, but will also bring more derivative applications.

The country will establish a digital identity authentication system based on the blockchain technology of the digital RMB to authenticate basic identity information. It is a very critical digital identity proof and is also used for the authentication of some public services.

This innovative technology will also be widely used in the development of digital government affairs, providing a new driving force and possibility for my country's digital society.

The payment methods and industrial ecology based on the digital RMB will usher in a new era, and will also greatly promote the development of my country's Internet economy.

The future of Internet finance will be assisted by the promotion of digital RMB, and my country's financial technology will also be more widely used based on the digital RMB.

The current promotion of digital currency will help our country seize the initiative in the wave of the Fourth Industrial Revolution and will be more conducive to the future development of our country's economy.

Development trend of digital RMB.

my country's digitalization process is also inseparable from the international digitalization process. As the pace of global development accelerates, it will lay the foundation for the internationalization of the digital RMB.

The global economy is constantly digitalizing, and the trend of competition among digital currencies is gradually emerging. The internationalization of the digital RMB is its trend, which is based in the Chinese market while going abroad.

At the same time, it will be conducive to promoting the digitalization of the global economy.

With the advancement of global processes and the process of digitalization, the international digital payment field will also gain more room for expansion. The opening of the Chinese market and other countries will also accelerate the pace of digital RMB in the international payment field.

This will increase the international recognition of my country's digital RMB and the convenience of international payments.

The development of the digital RMB will promote the development of financial technology in my country, but it also requires us to strengthen the protection of people’s rights and interests and security management, and eliminate various network security risks and data leakage issues.

Conclusion

With the continuous development of the digital RMB, it will bring about disruptions in the financial industry and changes in the payment system, expand their scope of application and deeper changes, and will also promote the development of my country's Internet economy. A lot of work will be done by people, which is also good news.

The promotion of the central bank's digital currency will affect existing payment methods, and the promotion of the central bank's digital currency is a major development trend.

The rise of central bank digital currency will have a profound impact on the existing payment system, and there will also be new developments, which will have a profound impact on the scope and depth of application of central bank digital currency.

Therefore, the QR code payment model that we are just familiar with may become a thing of the past one day. However, what problems will the central bank's digital currency solve? This requires us to move forward.