Abstract : Changchun Mu, the deputy director of the payment and settlement department of the People's Bank of China, said CBDC is ready and it will adopt a two-tier operating system. The upper layer is the People's Bank of China and the second layer is the commercial organization.
August 10 (ChainDD) Live report at the third China Finance Forum for the 40th Yichun Forum by Chiandd, Changchun Mu, the deputy director of the payment and settlement department of the People's Bank of China, said CBDC is ready and it will adopt a two-tier operating system. The upper layer is the People's Bank of China and the second layer is the commercial organization.
When it comes to the reason for choosing a "two-tier operating system" for CBDC, Changchun Mu said:
1. CBDC is bound to face to the retail scene and the public, while the performance of Bitcoin and Libra cannot meet the high concurrency. After a period of research, we decided to adopt a two-tier system.
2. The issuance of central bank digital currency by large countries is a complex system engineering.
3. The IT infrastructure application and service system of commercial banks and other institutions is relatively mature. The user base is huge. Service habits have been developed. We have relatively enough talent reserve and many IT experts. The system has strong processing capacity. We also have accumulated a certain amount of experience in financial technology application.
4. By designing a two-tier operation, it is possible to avoid excessive concentration of risk on a single individual.
5. Single tier design is likely to trigger “financial disintermediation”. Directly placing the digital currency on the public by the central bank will have a crowding-out effect on commercial bank deposits. It may affect the ability of commercial banks to lend. In some extreme cases, it will also disrupt the existing financial system.The central bank will create a situation of “great unity”.
6. The two-tier design not change the creditor-debtor relationship of the currency in circulation. It will not change the existing money delivery system and the dual account structure. Moreover, it will not affect the existing monetary policy transmission mechanism.
7. The central bank will not presuppose the technical route. Any advanced technology may be used for the central bank digital currency research and development. The boundary between electronic payment and the central bank's digital currency is vague. We can fully encourage market forces and achieve system optimization through competition.