PCB News - WeChat and Alipay of the circuit board factory

WeChat and Alipay of the circuit board factory

With the rapid development of mobile APP payment, many merchants and customers have begun to use mobile phones to pay, and QR codes for receipt and payment of WeChat and Alipay are everywhere. We can see that many friends around us only bring a mobile phone out of the house, and are unwilling to bring cash. However, paying with mobile phones seems to have become a part of people's lives. It can be seen that people's demand for cash has been greatly reduced, and theoretically the central bank's issuance of currency will also be reduced. But is this really the case?

First, let the editor of the circuit board factory take everyone to understand a point of knowledge. Seigniorage is also called currency tax. It is not only a fiscal policy used by the state to increase revenue, but also an important means for the government to make up for fiscal expenditures. In addition to relying on taxes, national debt and foreign debt, the government more often uses seigniorage to finance the government. Simply put, it is the benefits that can be obtained by issuing currency. For example, the cost of making a 100 RMB is about 0.38 to 0.4 RMB. But we can use it to buy things for 100 yuan, and the resulting economic difference is seigniorage, which is the government's main source of income. If we use the currencies of other countries, we will lose a lot of wealth. Many economists have emphasized that seigniorage is a very important financing strategy for a country. China’s GDP is currently the second largest in the world, and the annual currency issuance can be imagined. If we abandon the issuance of currency, we will lose much wealth.

Will the printing of RMB of PCB factory be reduced due to WeChat and Alipay?
In addition, the online banking and bank money in WeChat and Alipay in your mobile phone are the same. The money in your mobile phone can be just a number, but your money is actually stored in the bank or other financial institutions. In addition, the country's issuance of paper currency is not unlimited. The country's issuance of currency requires a corresponding gold reserve, so the issuance of paper currency should be restricted according to people's demand for currency.

The money on your mobile phone is only presented to you in digital form to facilitate the transaction, but the corresponding currency will be stored in the bank. In fact, behind each of your consumption, it corresponds to the real currency circulation, and cash corresponds to it, otherwise there will be economic chaos. Mobile payment is just to make people's payment methods more convenient, eliminating the need for cash transactions, and only affects the amount of currency used, but does not affect the amount of currency issued by the central bank. So everyone don't have to worry about the issue of currency.

The circuit board factory believes that although mobile payment makes our lives more convenient, it is better to bring some cash with you when you go out. Because after all, mobile payment is not available in all places, and it is more convenient to put cash on your body. In addition, in case the phone runs out of power or malfunctions when you need to pay someday, bring some cash to prepare for it.