According to a report by China Banking and Insurance News on July 13, digital currency, as a form of "Digital RMB," has reportedly entered limited trial phases among several major banks. Industry sources indicate that large banks have already begun small-scale pilot programs for digital currency. Relevant officials have stated that the central bank's digital currency will not replace WeChat Pay or Alipay. The central bank's digital currency is designed to replace M0 (cash in circulation), with functions and attributes similar to physical banknotes—only in digital form. In contrast, third-party internet payment platforms such as Alipay and WeChat Pay do not possess the legal standing equivalent to M0 and cannot replace it. Mu Changchun, director of the People's Bank of China Digital Currency Research Institute, once noted that the introduction of digital currency would not impact the dominant positions of Alipay or WeChat Pay. Currently, both Alipay and WeChat Pay are used for RMB transactions; after the rollout of the central bank's digital currency, users will simply transact using digital RMB. Although the payment instrument changes and new functionalities are added, the channels and usage scenarios remain unchanged.
However, Zou Chuanwei, chief economist at Wanxiang Blockchain, pointed out that in everyday payment scenarios, user experience with the central bank's digital currency should be comparable to that of WeChat or Alipay. One key difference is that the central bank's digital currency supports dual offline payments—transactions can be completed by tapping two phones together without requiring a network connection. Nonetheless, the application of digital currency faces multiple challenges. First, it requires blockchain technology as underlying infrastructure. While blockchain applications in digital currency continue to mature, further exploration is needed regarding its practical implementation. Second, there is the issue of whether relevant legal regulations can keep pace. As a new form of legal tender, comprehensive legal frameworks must be established promptly, especially in areas concerning potential risks associated with central bank digital currencies, so as to minimize risks related to issuance and circulation. Third, public education and outreach efforts are essential. Regulators need to clearly differentiate digital currency from other electronic payment tools through systematic public awareness campaigns, gradually guiding the public to accept this new innovation.
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