In recent years, the rapid development of digital currency has attracted widespread attention around the world. The People's Bank of China (PBOC) recently revealed that the transaction volume of the digital RMB (e-CNY) has approached 1 trillion US dollars, marking a major progress in China's digital currency field. At the same time, Russia also stated that China and Russia are considering using national digital currencies for bilateral settlements, which may further promote the application of digital RMB and its position in the international market.
The State Council Information Office of China recently held a series of press conferences with the theme of "Promoting High-quality Development". Lu Lei, deputy governor of the People's Bank of China, attended the press conference and answered questions about the progress of the digital RMB: "At present, the digital RMB has been piloted in 17 provinces (autonomous regions and municipalities), and has continued to explore in the fields of wholesale and retail, catering, cultural tourism, education and medical care, forming a number of online and offline, replicable and popularizable application solutions. As of the end of June this year, the cumulative transaction amount of the digital RMB has reached 7 trillion yuan (nearly 1 trillion US dollars)."
The promotion of digital RMB not only improves the convenience of transactions, but also strengthens the supervision of capital flows. Through the traceability of digital currency, financial regulators can more effectively combat money laundering and other financial crimes. This efficient supervision capability is unmatched by traditional cash exchanges, making digital RMB of great significance in maintaining national financial security.
The deputy governor stressed that after 10 years of research, the digital RMB has achieved initial success and has been verified through extensive pilot projects. China has established a "two-tier operating structure" for the digital RMB, combining central bank supervision with operating institutions. Moreover, after more than 6 years of research and development and more than 4 years of pilot projects, the feasibility and reliability of the digital RMB in theory, business and technology have been initially verified, and we are also working hard to make it more compatible with the digital economy. Overall, the progress is smooth.
Furthermore, the Deputy Governor stated: “China is willing to actively participate and jointly study and improve cross-border payment arrangements. It is currently actively participating in a cross-border digital currency project involving the central banks of Hong Kong, Thailand and the UAE. The project, led by the Bank for International Settlements, aims to address the problem of inefficiency in cross-border payments. It is currently in the minimum viable product stage and has achieved actual transactions across participating jurisdictions, highlighting the potential for future international cooperation”.
At the same time, the Russian State Duma Financial Market Committee stated that China and Russia are considering the possibility of using their respective national digital currencies for bilateral settlements. This means that the two countries may establish a digital channel for enterprises to trade and pay with digital rubles and digital yuan, which will help to smoothly realize cross-border payments.
There is no doubt that this news paves the way for the internationalization of the digital RMB. The close cooperation between China and Russia is not only a consideration of economic interests, but also reflects the common need of both sides to enhance financial autonomy in the context of an increasingly complex international political environment.
The advantage of using national digital currency for settlement is that it can reduce transaction costs, shorten settlement time, and reduce dependence on traditional currencies such as the US dollar. This is particularly important for Russia, which is currently facing sanctions and financial pressure. At the same time, for China, promoting the international use of digital RMB will help enhance its position in the global financial system and further promote the internationalization of RMB.
The digital RMB has not only achieved success in the domestic market, but its international prospects are also widely optimistic. As more and more countries and regions explore the possibility of digital currency, the digital RMB, as the world's first large-scale central bank digital currency, has unique competitive advantages. Especially under the impetus of the "Belt and Road" initiative, China's trade with many countries is becoming increasingly frequent, and the use of digital RMB will provide a more efficient and secure payment method for these transactions.
It is worth noting that the technical architecture and user experience of the digital RMB are also constantly improving. This makes it more adaptable in the international market and able to meet the needs of different countries and regions. With development, the digital RMB may become one of the main tools for cross-border payments, helping to facilitate global trade.
Looking ahead, the promotion prospects of digital RMB are broad. With the rapid development of the digital economy and the continuous changes in consumption patterns, digital RMB will play an increasingly important role in domestic and foreign markets. At the same time, the cooperation between China and Russia in the field of digital currency will also provide a new perspective for the transformation of the global financial system.
In general, the importance of digital currency in the global financial market is increasing, and the cooperation and competition among countries in the field of digital currency will have a profound impact on the future economic landscape, which deserves continued attention from global investors and economic observers.
