It is not suitable to circulate RMB banknotes. The new regulations are intended to promote digital currency? Expert: Misunderstanding! cash is here to stay

A few days ago, there was a view that the central bank previously issued a new version of the financial industry standard “Unsuitable for Circulating Renminbi Banknotes” to promote the use of digital renminbi; there are also rumors that large-value banknotes will be eliminated in 2025. “This is a misunderstanding.” On January 25, an authoritative expert told the Beijing News Shell Finance reporter that cash will still exist for a long time in the foreseeable future. The new standard aims to further improve the cleanliness of RMB in circulation and ensure that the public can use safe and clean money. As banknotes will gradually wear out, age, and become dirty and old during the circulation process, this “dirty” type of banknotes is not suitable for circulation of RMB. The People’s Bank of China has improved the evaluation criteria for dirty indicators in the new standard. With the implementation of the new standard, the public will intuitively feel that the money withdrawn from the bank is cleaner and tidy. The public’s daily use of cash will not be affected in any way. | Related reading (Beijing News)

Audrey Jing

There are three-party payment platforms such as WeChat and Alipay, and the digital renminbi promoted by the central bank. I believe that many people have not touched cash for a long time. However, the central bank has a consistent attitude towards cash. Many merchants have been punished for not accepting cash.

In terms of cashless payment, China can be said to be overtaking in a corner, but in developed countries such as the United States and Japan, cash is still widely used. According to data from the Ministry of Economy, Trade and Industry of Japan, the cashless payment rate in Japan will only be 32.5% in 2021, while the rate in China is much higher than this.

Although digital currency is convenient, cash is still indispensable. No country in the world has abolished cash, and for many consumers who cannot participate in digital channels, cash is still the real “money” in their eyes.

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