What signal has the state released when the central bank cancels the registration of individual withdrawals exceeding 50000 yuan?
We all know that the People's Bank of China is responsible for formulating and supervising monetary policy, and its measures and statements in this regard have been highly anticipated. So what exactly does canceling the personal withdrawal registration limit mean?
1、 Why was this regulation abolished?
According to relevant information, the People's Bank of China issued an important decision last year, which will be implemented from December 1, 2022. The regulation stipulates that individuals who deposit or withdraw cash exceeding 50000 yuan in the bank will need to register under their real name and provide detailed information on the source and purpose of the funds. This measure aims to resolutely combat criminal activities such as money laundering, fraud, and illegal transactions.
However, shortly after the specified release time, this decision was suspended. There are two main reasons behind this pause Firstly, many people believe that customers should have the right to freely decide how much money to withdraw and how to use the funds. Therefore, requiring customers to submit usage records during withdrawal may infringe on the depositor's personal privacy rights and add extra trouble to withdrawing cash.
Secondly, when considering the current bank withdrawal policy, we must acknowledge the fact that although banks require withdrawals exceeding 50000 yuan to be registered, if depositors provide a reason to withdraw at will, the bank will find it difficult to detect any problems and ultimately cannot organize users to withdraw. They are almost unable to truly verify whether the customer's stated withdrawal purpose is true and trustworthy. Therefore, even if the central bank issues a policy that requires individuals to register for withdrawals exceeding 50000 yuan, there are still certain limitations in terms of effectiveness.
In addition, when the central bank forcibly requires banks to register information for customers who withdraw more than 50000 yuan, it will undoubtedly greatly increase the workload of bank tellers, causing banking institutions to face double the heavy pressure. Therefore, the registration of individual excess withdrawals has been put on hold until recently, when the decision was made to cancel it.
2、 Digital currency is more secure
The central bank has announced the abolition of the policy of requiring withdrawal registration for individuals who withdraw more than 50000 yuan. This is not only an important policy change, but also means that the central bank is willing to listen to the suggestions and opinions of people from all walks of life, and respects the freedom of depositors to withdraw and their personal privacy rights. It can be seen that the central bank will also make corresponding adjustments based on public feedback after formulating and announcing a large-scale cash flow management plan.
Secondly, the promotion and development of digital renminbi is an important measure taken by the central bank to strengthen its financial security regulatory capacity. According to statistical data analysis, in 2014, the People's Bank of China established a specialized research institution - the "Digital Currency Research Institute", and began to conduct in-depth research and experimentation on the "Digital RMB".
By 2021, the central bank will expand the pilot scope of digital RMB to major cities such as Beijing, Shanghai, and Guangzhou. At present, the use of digital RMB has been widely promoted nationwide, allowing residents to easily use smartphones or visual cards for payment and shopping.
One of the primary characteristics of digital renminbi is that the central bank needs to continuously monitor the flow of currency in real-time. This means that due to traceability, all transactions conducted by digital RMB users cannot evade monitoring, thus preventing money laundering, financial fraud, tax evasion, and other illegal transactions. With the promotion and popularization of digital RMB nationwide, China's financial order will be more effectively maintained.
The security performance of digital RMB is very superior. As a national legal tender equivalent to cash, electronic currency has a higher security guarantee than depositing funds in third-party payment tools such as WeChat and Alipay.
The settlement and payment of digital RMB can be carried out through the network or mobile phone, which meets the flexibility of using digital RMB for transactions without network or mobile phone conditions. In contrast, third-party payment tools such as WeChat and Alipay cannot conduct settlement transactions without network and mobile phones.
In addition, the issuance and circulation of digital RMB are also more controllable and stable. The central bank can adjust the supply of digital renminbi according to the needs of the economic situation and monetary policy, ensuring the stable value and circulation of currency. In contrast, the issuance and management of third-party payment instruments are often handled by private institutions, making it difficult to effectively control and regulate them.
epilogue
The policy adjustment of the central bank and the promotion of the digital renminbi will have a profound impact on China's financial system and market. This series of measures reflects the determination and action of the central bank to actively promote financial reform and innovation, and will also make important contributions to the development and stability of China's financial industry.
