[Beijing Diary] Detecting Counterfeit Currency After 18 Years

[Asia Economy Beijing=Special Correspondent Kim Hyun-jung] In the summer of 2004, when I went to Beijing, China for a language study program, I received a lot of advice from relatives and school seniors. From security tips like "Don't wander around late at night" and "Always carry your bag in front of you in crowded places" to lifestyle advice such as "Don't buy food from the street" and "When buying something, always bargain to half the asking price." As a spirited university student, I mostly ignored these tips, but one thing I clearly remembered and followed was to always be cautious of counterfeit bills.

Before departure, I practiced checking yuan notes by holding them up to sunlight, scratching them with my nails, and tilting them at different angles to develop my own know-how. Sure enough, during my stay in Beijing, I encountered fake money at least twice a month in taxis or restaurants, and I had to immediately raise the issue on the spot to exchange it for genuine bills. Among international students, there was even an urban legend that the state-owned Bank of China (BoC) had once accepted counterfeit money.

[Image source=Reuters Yonhap News]

After 18 years, when I returned to Beijing last summer for correspondent work, the biggest change I felt was also about ‘money.’ China, which practically skipped the credit card era, has long replaced almost all payment markets with mobile payments like Alipay (Zhifubao) and WeChat Pay (Weixin Zhifu). By simply linking your phone number and bank account to the app, you can pay by scanning QR codes not only at all supermarkets and restaurants but also at street vendors. Each restaurant table has a unique QR code, and by scanning it, you can comfortably and leisurely choose your food while viewing photos at your seat and also make payments. Compared to the past when dealing with counterfeit money required considerable energy, this payment system, more convenient than even Korea’s, truly makes one feel the passage of time.

The first time I encountered paper money in China in six months was in Xi’an, Shanxi Province. During a holiday, upon arriving at Xi’an Xianyang International Airport with my family, I was about to buy a bottle of Binghongcha (Chinese iced tea) from a vending machine using mobile payment when a dignified Chinese man approached me, saying his app wasn’t working properly and asked me to pay on his behalf. The amount was small (4 yuan, about 730 won), and since he immediately offered small bills, I gladly agreed. There was nothing suspicious or uneasy about it.

At Xi’an’s most famous tourist site, the Terracotta Army (Bingmayong), I ended up holding a fairly large amount of cash. I paid a kind of deposit called ‘Yajin (押金)’ of 200 yuan when renting a Korean-speaking guide, and upon returning the device, I received the deposit back in cash. Since there were so many people and it was hectic, I just put the money in my wallet and only remembered it after the trip was over and I returned to Beijing. With a slight sense of unease, I took out the two pink bills and checked them based on my past experience?they were not counterfeit.

After this ‘authentication process’ for the first time in 18 years, even I, who have worked in China for nearly half a year, felt that I have not yet fully adapted to the changes in China’s currency usage. Recently, China has been more earnest than ever in improving its capabilities and influence in the currency market, including the digital yuan. Even the red envelopes (hongbao, red packets containing money) given during holidays like the Lunar New Year or celebrations have become digitalized. Now, what we need to consider is not whether the paper money in our hands is counterfeit, but how Korea should respond to China’s goal of becoming a ‘digital currency powerhouse’ and the resulting reorganization of the international financial order.