Alipay's Chief Legal Officer: In the future, will "gradually open up" the use of digital RMB for Taobao users.

Sina Finance reported that Ant Group's Chief Legal Officer Li Chen revealed at the Digital Trade Fair that Alipay has joined the digital Renminbi network. It will be the first payment platform to support the fast payment function of the digital Renminbi wallet and will gradually open up the use of digital Renminbi for Taobao users.

Li Chen: Starting today, Alipay will gradually open up the digital Renminbi payment function for Taobao users.

Sina Finance reporters tested it and found that by clicking on the Alipay option on Taobao, users can make payments using the digital Renminbi wallet through the Alipay app. In addition to Taobao, platforms like Tmall and Ele.me can also use it. However, this is only available in pilot cities such as Shanghai, Hangzhou, Chengdu, and Changsha.

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What are the differences between Alipay and digital RMB?

Many people may wonder, if both Alipay and digital RMB offer payment services, why do we need digital RMB when platforms like Alipay already cover most payment needs?

This may be related to the geographical characteristics of China.

The Governor of the People's Bank of China, Yi Gang, once stated that China's vast geographical area, large population, and significant regional development disparities, along with residents' payment habits, determine that cash will continue to exist in the foreseeable future.

In simple terms, the vast geographical area makes it impossible for commercial banks in China to cover the entire country, and payment platforms need to be integrated with commercial bank accounts. Therefore, digital RMB is considered part of inclusive finance by the Chinese government.

Yi Gang: As long as there is a demand for cash, the People's Bank of China will not stop cash supply or replace it by administrative order. The use and promotion of central bank digital currency should follow market principles. In other words, the central bank will issue as much as people need to exchange.

Therefore, issuing digital RMB can bring rural residents into the financial system. For these people, after integrating Alipay App with digital RMB, they can use it on platforms like Taobao and Tmall.

Need for Fiscal Policy Management

Another benefit of digital RMB may be its policy convenience.

For example, when distributing government subsidies such as consumer vouchers, they can be sent through digital RMB. Residents in remote areas do not need to receive checks by mail or go to specific locations, making fiscal policies easier to implement.

In addition, digital RMB serves as a substitute for cash, making it easier for the government to control the issuance of legal tender. Monetary tightening or expansion policies will also be more effective.

Lastly, it aids in combating money laundering. With access to transaction records of digital RMB, the government can more easily prevent illegal activities like money laundering.