Chinese Digital Yuan is Testing Limited Anonymous Transaction
According to the latest report, DCEP, China’s digital yuan are testing the limited anonymous transaction as the pilot project initiated by Shenzhen’s municipal government has got off to a great start. “Limited anonymous transaction”, that is, the transaction record won’t display the merchant, on which only the vague transaction type will be displayed.
Compared with the third-party payment software such as WeChat, Chinese digital yuan is simple-design and focuses on offline payment. It is more suitable for small retail payment scenarios.
For consumers, the user experience is not significantly different from that of Alipay and WeChat as they all generate a QR code for payment. Therefore, there is no strong incentive for users to turn to digital yuan from third-party payment. However, compared with WeChat and Alipay, transaction fee of digital yuan was reduced.
It is worth noting that although “dual offline payment” function has been added in the digital yuan app, the function has not yet been opened. At present, the offline payment of third-party payment software is “single offline”, offline to users and online to merchants. As long as two people have installed the digital yuan app, there is no need for Internet and signal of mobile phones. As long as the mobile phone has electricity, the two mobile phones can touch each other to realize real-time transfer.
“Double offline payment” is very convenient, which is a function that third-party payment software does not have. At present, users can only rely on paper money when the Internet is not available if they are using third-party payment software. In addition, the Chinese digital yuan’s using experience will only be better than other means of payment, but many advantages have not be reflected because it has not been widely promoted.
Chinese digital yuan is essentially fiat money, and behind its pilot is the will of the state, which is different from the optional nature of other payments. The pilot for the “Luohu Digital RMB Red Packet” can be launched in large areas at any time according to the needs if the state wants. In addition, it is worth noting that payment is only a basic function of digital yuan. It is actually an electronic currency. After being put into use, it will run with paper money at least for a period of time, while other payment methods are just payment platforms and do not have more functions.