Digital RMB is moving towards people’s life. At the end of 2021, President Yi Gang pointed out at the commemoration of the 30th anniversary of the establishment of the Institute for emerging economies of the Bank of Finland, “The people’s Bank of China has been studying legal digital currency since 2014. In 2016, the people’s Bank of China built the prototype of the first generation of central bank digital currency, and put forward the basic features of M0 positioning, two-tier operation system and controllable anonymity. Since 2017, the people’s Bank of China has cooperated with commercial banks and Internet companies to jointly carry out the research and development of digital RMB. At the end of 2019, the pilot project of digital RMB has been launched for the purpose of The top 10 cities and the 2022 Beijing Winter Olympics. Some cities have also launched digital RMB green travel, low-carbon red envelopes and other use scenarios. In July 2021, the people’s Bank of China issued a white paper on digital RMB. As of October 8 this year, there have been more than 3.5 million digital RMB pilot scenarios, 123 million personal wallets have been opened, and the transaction amount is about 56 billion yuan. “
The digital RMB has been expanded and upgraded. In January 2022, the digital RMB app (pilot version) was officially launched, marking that the exploration of digital RMB will enter a new stage of development. At present, personal digital RMB wallets are divided into four types. Operators include Industrial And Commercial Bank Of China Limited(601398) , Agricultural Bank Of China Limited(601288) , Bank Of China Limited(601988) , China Construction Bank Corporation(601939) , Bank Of Communications Co.Ltd(601328) , Postal Savings Bank Of China Co.Ltd(601658) , China Merchants Bank Co.Ltd(600036) , Internet Banking (Alipay), micro public bank (WeChat payment). E-commerce bank, Weizhong bank and China Merchants Bank Co.Ltd(600036) are newly added to the queue of digital RMB operators to jointly build a digital RMB app ecosystem.
Digital RMB is conducive to improving payment efficiency and promoting the development of digital economy. With the access of more and more relevant application scenarios, the transaction scale of digital RMB is expected to be greatly improved. Digital RMB covers public utilities, catering services, transportation, shopping and government affairs. The application scenarios have become increasingly rich, and the transaction scale has increased steadily. Looking forward to the follow-up, more users will open and use digital RMB wallets, and the application scenarios of digital RMB are expected to be richer, gradually extending from the original pilot of small retail to large-scale payment, cross-border payment and other fields. We believe that the gradual implementation of digital RMB by the central bank will help the development of digital economy and bring new channels for customers to the banking industry.
Investment suggestion: we expect that the application of digital RMB will cover more real scenes, facilitate people’s living payment methods, reduce payment costs, and bring new channels for the banking industry to expand capacity and increase income.
