The Impact of Controllable Anonymity Mechanism of Digital Renminbi on the Risk of Small-scale Consumer Credit

Abstract

In the context of the development of the digital economy, the controllable anonymity mechanism of digital Renminbi (RMB) is gradually being promoted. The characteristics of small amount anonymity, large amount traceability, voluntary front-end, and real name back-end have had various impacts on the risks of small consumer credit. On the one hand, the safety and convenience of small-scale consumption have been improved, which, to some extent, solves the problem of information asymmetry and enhances the ability to manage credit risks. On the other hand, it is difficult to strike a balance between “anonymity” and “regulation”. Furthermore, it relies on a strict legal system and rigorous management institutions, as well as advanced technologies such as blockchain and distributed accounting. However, due to the limitations in the quantity and scope of market research, as well as the challenges brought by the continuous updates of digital RMB, the research results may have limitations. So it suggest considering the market environment and paying attention to the different impacts of digital RMB on credit risk under different conditions. And it can also pay attention to technological updates to make research results more in line with reality, and make more reasonable and effective research results in the future.