In China, the mobile payment era, why does the central bank release a new version of the Renminbi

On April 29, 2019, the people’s bank of China announced that the fifth set of RMB 50 yuan, 20 yuan, 10 yuan, 1 yuan notes and 1 yuan, 50 jiao and 1 jiao COINS for the 2019 edition will be issued from August 30.

Many netizens are curious as to why the People’s Bank of China will release a new version of the renminbi against the backdrop of the prevalence of mobile payments and dwindling cash payments.

The relevant person in charge of the People’s Bank of China has answered the relevant questions of netizens and everyone.

Zhang meng, deputy director of the monetary gold and silver bureau of the people’s bank of China, said that although the development of mobile payment has replaced the use of cash, the demand for RMB in circulation still needs to be clarified as follows:

1.RMB cash is China’s legal tender.

2.Diversified means of payment have obvious substitution effect on cash. However, cash will exist in the long term and a certain amount of cash needs to be maintained.

3.For a long time to come, cash remains one of the most basic means of payment that is universally acceptable to the public.

4.For special groups, special areas and special conditions, cash is important to ensure the need for emergency payments, while respecting the option of diversified payments.

In addition, the editor believes that mobile payment itself has shortcomings, such as insufficient privacy protection, the use of fingerprints easy to generate theft risk and network security issues, such as excessive reliance on electronic payments can cause problems.

It is worth noting that in July last year, the People’s Bank of China also issued a 10th announcement of the People’s Bank of China in 2018 on the phenomenon of rejection of cash, in order to rectify the cash rejection in the era of mobile payment.

Editors have expressed support for tackling the rejection of cash, after all, cash can also be convenient for many people. A truly accessible society should be paid for by multiple payment methods, rather than relying too heavily on electronic payments.

In fact, no matter the development of mobile payments, there are still many people used to spending cash, and once banning the use of cash will bring a disaster to the community, then the central Bank of China issued the 2019 edition of the fifth set of RMB, in order to maintain the payment method can also be understood.