Accelerate the pilot application of digital RMB!
Linden smart 9-15
Professional focus and win-win cooperation
In our daily life, the “cashless transaction” that can be completed through a mobile phone without wallet and paper money is quite common.
With the vigorous development of digital economy, the public’s demand for the security and privacy of payment means is increasing day by day. The white paper on the research and development progress of China’s digital RMB (hereinafter referred to as the white paper) issued by the digital RMB research and development working group of the people’s Bank of China points out that the central banks or monetary authorities of many countries and regions closely track the achievements of financial science and technology development and actively explore the digital form of legal tender. Legal tender is moving from theory to reality.
According to the latest survey report of the bank for International Settlements, about 86% of the central banks of 65 countries or economies have carried out digital currency research, and the number of central banks undergoing experiments or conceptual verification has increased from 42% in 2019 to 60% in 2020.
The people’s Bank of China (hereinafter referred to as the people’s Bank of China) also attaches great importance to the research and development of legal digital currency:
In 2014, the legal digital currency research group was established to start special research on the issuance framework, key technologies, issuance and circulation environment and relevant international experience;
In 2016, the digital currency Research Institute was established to complete the construction of the first generation prototype system of legal digital currency;
At the end of 2017, with the approval of the State Council, the people’s Bank of China began to organize commercial institutions to jointly carry out the research and development test of legal digital currency (hereinafter referred to as digital RMB).
Through the step-by-step strategy, China aims to create a new type of RMB in digital form for the purpose of meeting the public’s cash demand under the condition of digital economy, coupled with a financial infrastructure that supports the reliable, stable, fast, efficient, continuous innovation and open competition in the field of retail payment, so as to support the development of China’s digital economy and improve the development level of Inclusive Finance, Improve the operation efficiency of currency and payment system.
Specifically, the establishment of the digital RMB system is to enrich the cash forms provided by the central bank to the public, meet the public’s demand for digital cash, and help Inclusive Finance – the public without bank accounts can enjoy basic financial services through the digital RMB wallet, Overseas residents who come to China for a short time can open a digital RMB wallet without opening a bank account in mainland China to meet their daily payment needs in China.
Second, support fairness, efficiency and security in the field of retail payment. Digital RMB will provide the public with a new general payment method, improve the diversity of payment instruments and help to improve the efficiency and security of the payment system.
Third, actively respond to the initiatives of the international community and explore ways to improve cross-border payments. Digital RMB has the technical conditions for cross-border use. In the future, the people’s Bank of China will actively respond to the initiatives of the group of twenty (G20) and other international organizations to improve cross-border payment and study the applicability of the central bank’s digital currency in the cross-border field.
In terms of the progress of the establishment of the digital RMB system, the white paper shows that at present, the R & D test has basically completed the top-level design, function R & D, system commissioning and other work, and is following the principles of stability, safety, controllability, innovation and practicality to select some representative regions for pilot testing.
Let’s take a look at the recent new progress in the pilot and application of digital RMB
Quanyun village digital RMB scenario to achieve “multi-point coverage”
The digital RMB scene in the 14th National Games village has achieved “multi-point coverage”. So far, it has covered many key merchants in the athletes village, media reporters village and technical officials village. It is an important payment scene for the pilot work of digital RMB and provides conditions for promoting the construction of digital RMB scene.
Guangdong: promote Guangzhou’s pilot application for digital RMB
The notice of the people’s Government of Guangdong Province on printing and distributing the action plan of Guangdong Province to further promote the reform of market-oriented allocation of capital factors issued on September 14 points out that it supports Shenzhen to deepen the pilot of digital RMB application innovation of the central bank, timely apply to expand the scope of pilot cities, and promote Guangzhou’s application for digital RMB pilot work.
Shenzhen: take the lead in testing the use of digital RMB by Hong Kong residents in the mainland
The front page article of the people’s daily on the 13th, running out of the acceleration to a new level, revealed that Shenzhen took the lead in completing the test of the use of digital RMB for Hong Kong residents in the mainland, laying a practical foundation for promoting the cross-border circulation of digital RMB in Shenzhen and Hong Kong and solving the payment of current accounts such as cross-border tourism.
ICBC launches new digital RMB function
Industrial and Commercial Bank of China has added new functions of “smart exchange” and “combined payment” to the digital RMB wallet of mobile banking app to solve the problem of excessive or insufficient wallet balance in the process of using digital RMB.
Beijing: steadily promote the whole scene pilot of digital RMB
On September 10, Lu Yingchuan, vice mayor of Beijing, said at the 2021 China (Beijing) digital finance forum that under the guidance of the central bank, Beijing will accelerate the construction of legal digital currency experimental area and digital financial system, and steadily promote the whole scene pilot of digital RMB. At the forum, the Beijing municipal financial regulatory bureau also awarded the “Beijing legal digital currency pilot zone” to Lize financial business district to create a digital RMB technology and application ecology.
Central Bank of China: steadily promote the research and development of digital RMB
Fan Yifei, vice governor of the Central Bank of China, said that the people’s Bank of China has steadily promoted the research and development of digital RMB and achieved phased results. At the same time, we also see that some problems need to be solved urgently, such as the digital RMB rule system needs to be improved, the acceptance environment needs to be optimized, the payment system needs to be improved, etc. In the next step, we will adhere to the principle of openness and inclusiveness, make efforts from both supply and demand, organize and continuously optimize the underlying business capacity and basic technology platform of digital RMB, actively empower foreign countries, and jointly build a digital RMB ecosystem.
Central bank Statistics Research Institute: actively explore the application of digital RMB blockchain
Di Gang, deputy director of the digital currency Research Institute of the people’s Bank of China, said that the digital currency research institute actively explored the application of digital RMB blockchain, built a unified distributed ledger based on blockchain at the issuance layer, and improved the reconciliation efficiency; At the same time, with the support of the innovation center of the bank for International Settlements, carry out the digital currency bridge project of multilateral central banks and explore the use of distributed ledger; At the same time, it has also built a trade finance blockchain platform and undertaken major special projects of national key R & D plans.
Visa and Bank of China will jointly customize digital RMB products for the Beijing Winter Olympics
Visa and Bank of China announced that they will jointly give full play to their global group advantages, contribute wisdom to the digital RMB services of Beijing 2022 Winter Olympic Games and winter Paralympic Games, customize suitable digital RMB products, and cooperate to complete the construction of acceptance environment of Winter Olympic venues.
Postal savings bank pilot digital RMB foreign currency exchange machine
Many banks are exploring the foreign currency exchange of digital RMB. The digital RMB foreign currency exchange machine launched by the postal savings bank can automatically identify more than 180 denominations and versions of foreign currencies, and realize the self-service opening of digital RMB wallets, self-service sales of hard wallets, and self-service exchange from foreign currencies to digital RMB. At present, the machine has not been put into operation, and relevant businesses are under pilot.
Li Lihui, former president of Bank of China: the underlying technology and operation system of digital RMB are relatively mature
Li Lihui, former president of the Bank of China, believes that the gradual transition from the previously relatively independent “single point” pilot mode to the multi place linkage “regional network” pilot mode means that the underlying technology and operation system of digital RMB have reached the basic requirements of medium-sized and reliable operation. The intensive pilot of digital RMB in traffic scenarios shows that the underlying technology and operation system of digital RMB are relatively mature and are entering a new stage from focusing on experience coverage in the early stage to testing depth in the medium term.
The first full process digital RMB tax payment business in China has been completed
The whole process from tax payment to Treasury warehousing and reconciliation was successfully realized in Dalian through digital RMB circulation, which is also the first digital RMB online tax payment business in China. The application of digital RMB in the field of taxes and fees solves the problem that when a large amount of taxes cannot be paid online, you need to go to the tax authority to print the bank to query the payment voucher, and then go to the bank to pay taxes, as well as the problem that individual industrial and commercial households need change when paying taxes in cash.
Shanghai launches key experimental blocks of digital RMB
Shanghai Municipal Commission of Commerce has sorted out the first batch of 24 key projects of digital transformation in the business field, including the “key experimental block of digital RMB on Nanjing West Road”, which aims to build a “new retail test field” and form a benchmark scene of digital business district.
Meituan launched the pilot of digital RMB low-carbon travel
On September 9, meituan announced to launch the pilot activity of digital RMB low-carbon travel in many places across the country.
Shenzhen: To explore digital RMB + charity
On September 8, the notice of Shenzhen Civil Affairs Bureau on Soliciting Opinions on the 14th five year plan for the development of Shenzhen Civil Affairs (Draft for comments) was issued, proposing to explore the scenario application of digital RMB in the field of charity; Develop digital RMB related lottery purchase payment and small prize cashing methods.
The first pension service scenario of digital RMB landed**
The smart chest card displayed at the insurance digital RMB booth of 2021 service trade fair is a new pension business jointly carried out by Bank of China Digital RMB and China Unicom smart chest card, which integrates a variety of service functions such as digital RMB micro payment, emergency call, electronic fence, track query and so on.
The first digital RMB exchange machine will serve the Beijing Winter Olympic Games
The world’s first digital RMB exchange machine was displayed at the Bank of China booth of 2021 service trade fair, which can directly convert 17 mainstream foreign currencies into digital RMB. The staff said that this digital RMB exchange machine will appear in the Winter Olympics. Foreign athletes can easily use digital RMB for consumption without opening a bank account. At present, the digital RMB Winter Olympics support scene with Shougang Park as the core and key business districts and tourist attractions as the radiation is accelerating the expansion.
Southwest University of Finance and economics officially launched the digital RMB campus scene
At present, the digital RMB campus scenario application has been officially launched in Southwest University of Finance and economics, and the project implementation and pilot preparation have been completed in some universities in many places.
Jinjiang Hotel app took the lead in completing the online payment scenario of digital RMB overseas hotels
Jinjiang wehotel and industrial and Commercial Bank of China jointly carried out digital RMB payment business, successfully launched its Jinjiang Hotel app, effectively covered more than 20 brands of Jinjiang International in the first batch, and took the lead in completing the implementation of online payment scenarios for overseas hotels, so as to achieve a breakthrough in the application of digital RMB in the hotel industry.
China Telecom wing payment online digital RMB Wallet
On September 7, the digital RMB wallet application of China Telecom wing payment in cooperation with Bank of China was launched. The user can open the digital RMB wallet with one click in the wing payment app. After passing the real name authentication and binding the bank card, the user can carry out bank deposit, currency exchange, transfer and other operations through digital RMB.
Digital RMB has supported inter provincial payment of electricity charges
On September 6, the online state grid “cloud terminal” successfully launched the digital RMB inter provincial electricity payment function. With the strong support of the State Grid e-commerce company, the digital RMB inter provincial electricity payment function was successfully realized. This means that all power users across the country can use digital RMB to pay electricity charges for accounts in any part of the country through online state grid cloud terminals.
Bank of communications takes digital RMB as the starting point to promote the development of Changsha modern cultural industry system
At the “three highs and four innovations” strategy and investment environment (Shanghai) promotion conference in Changsha on September 6, Bank of communications signed the “14th five year plan” cooperation framework agreement with Changsha municipal government. In the next stage, digital RMB will be used as the starting point to actively promote the development of modern cultural industry system in Changsha.
People’s Bank of China: successfully landing 345000 digital RMB Winter Olympics scenes
On September 6, the business management department of the people’s Bank of China issued the opinions on financial support for Beijing’s green, low-carbon and high-quality development. Yang Weizhong, Secretary of the Party committee and director of the business management department of the people’s Bank of China, revealed that the business management department of the people’s Bank of China earnestly implemented the work deployment of the Beijing Municipal Party committee and government, steadily promoted the digital RMB pilot, and successfully implemented 345000 digital RMB Winter Olympics scenes, Achieve full coverage of seven major scenarios such as transportation and travel.
People’s Daily: Digital RMB further helps inclusive financial services
While meeting the public’s demand for legal currency in digital form, digital RMB will further help inclusive financial services. Digital RMB is conducive to further reducing the threshold for the public to obtain financial services. The public without a bank account can enjoy basic financial services through the digital RMB wallet. The characteristics of “payment is settlement” and low cost are also conducive to enterprises and relevant parties to improve capital turnover efficiency and further reduce payment costs while enjoying payment convenience.
Suzhou and Bank of China comprehensively deepen cooperation in the pilot of digital RMB**
On September 5, Suzhou municipal government and Bank of China signed a strategic cooperation agreement to comprehensively deepen cooperation in digital RMB pilot and other fields.
Beijing Expressway will support digital RMB charging
On September 5, at the Shougang Park venue of 2021 service trade fair, the first group signed strategic cooperation agreements with six banks including industrial and Commercial Bank of China, Beijing Branch, and reached a consensus on the in-depth cooperation of digital RMB in key business areas such as highways. Next, the first group will accelerate the implementation and application of digital RMB in scenarios such as highway toll collection.
Beijing Daily: Digital RMB operating institutions present a “6 + 2 + 1” pattern
According to the Beijing Daily, at present, the digital RMB operation organization presents a “6 + 2 + 1” pattern, that is, six state-owned banks of industry, agriculture, China Construction, transportation and postal savings, two private banks of e-commerce bank and Weizhong bank, and China Merchants Bank, a newly joined joint-stock commercial bank.
Qingdao: a big breakthrough in digital RMB
Qingdao has made great breakthroughs in the development of digital RMB scene, personal wallet and characteristic scene. As of early May this year, Qingdao had opened 850900 digital wallets, and 121200 digital RMB payment application scenarios had been implemented, with a total of 680100 transactions and a transaction amount of 923 million yuan.
Qingdao: steadily and carefully promote the pilot of digital RMB
At a series of press conferences on the interpretation of Qingdao’s “14th five year plan” special planning policies, Qingdao local financial regulatory bureau revealed that according to Qingdao’s “14th five year plan” financial industry development plan, it will steadily and carefully promote the pilot of digital RMB and accelerate the construction of digital financial infrastructure.
Suzhou: “coin self-service exchange machine” supports digital RMB exchange
52 “coin self-service exchange machines” in Suzhou have opened the exchange link between digital RMB and coins. Citizens can exchange back and out of digital RMB and coins at the self-service exchange machine at the acceptance point according to the operation instructions of the electronic display screen.
Ministry of industry and information technology: smart contract will promote the innovation of digital RMB business model
Chen Xiaohua, a major project review expert of the industrial Internet blockchain of the Ministry of industry and information technology, said that the rational use of smart contracts will greatly promote the innovation of digital RMB business model. Digital RMB is programmable through smart contract, which enables digital RMB to be flexibly used in a variety of environments and relationships on the premise of compliance and according to the conditions agreed by both parties. More and more small and medium-sized banks such as urban commercial banks and rural commercial banks accelerate their entry into the digital RMB application pilot, which will provide more test scenarios for the promotion of the digital RMB pilot, and further optimize the issuance and clearing efficiency of digital RMB in various regions.
Thanks to the wide adoption of electronic payment by consumers, the almost “cashless” social environment and extensive mobile coverage, digital RMB has been continuously promoted at the policy and pilot levels. According to the analysis and forecast report on China’s macroeconomic situation in the first quarter of 2021 released by the research group of the Institute of higher studies of Shanghai University of Finance and economics, it is expected that the digital RMB is expected to be officially launched nationwide after the test of the Beijing Winter Olympic Games.
This brings new development opportunities to blockchain technology. The digital RMB system adopts distributed and platform design. At some specific levels, the blockchain can cooperate with other technologies to produce good results.
Mu Changchun, director of the digital currency Research Institute of the people’s Bank of China, said that blockchain has the advantages of non tampering and traceability of data, and is suitable for low concurrency and low sensitivity scenarios such as asset ownership confirmation, transaction transfer and ledger reconciliation. According to the technical characteristics and application scope of blockchain, the people’s Bank of China has explored innovative applications of blockchain in the fields of trade finance, right confirmation transaction and transaction reconciliation, such as trade finance blockchain platform and digital bill trading platform.
As a new form of currency in the digital age, digital currency plays a prominent role in facilitating the people and benefiting the people, international trade and so on. The digitization of legal tender has become the general trend of the world in the future. I believe that next, the application of digital RMB will continue to expand with the promotion of blockchain and other technologies, and the opportunities of relevant industries such as smart contracts will continue to appear, so as to accelerate the construction of digital economy ecology!