Blockchain is the preferred technology for digital currency of central banks. With the help of blockchain technology, CBDC (central bank digital currencies) can incubate a variety of advantages. Blockchain technology comes from bitcoin, and central banks are mainly cautious and exclusive about cryptocurrencies represented by bitcoin. Although the decentralization of blockchain technology conflicts with the centralized management of central banks, blockchain technology can still be effectively used in the development and management of CBDC Festival. We believe that CBDC can help the central bank to improve the competitiveness of its legal currency, suppress the circulation of cryptocurrency and improve the central bank’s financial control ability. With the help of the blockchain technology of cryptocurrency, CBDC improves its ability to prevent crime and promote inclusive finance, so as to ensure the central bank’s ability to control money in the digital age.
From the perspective of CBDC layout of global central banks, more strategies still remain within the country. Countries with different financial development stages have different needs for CBDC. Therefore, the means and Strategies of developing CBDC are also different. The main purposes of CBDC projects in various countries include: (1) security of integration into the international financial system: Bahamas, Venezuela, etc.; (2) construction of national financial sovereignty: Bahamas, Venezuela, etc.; (3) anti money laundering and improvement of Supervision: Venezuela, China, etc; (4) De dollarization / improving the transparency of currency operation: Ecuador, Senegal, Tunisia, Marshall Islands, Uruguay, Venezuela, etc.; (5) improving the financial system: Singapore, Japan, EU, Canada, China, etc.; (6) improving the financial status of inter-bank market: Singapore, EU, etc; (7) Advance layout of concerns about the decline of cash utilization rate: Sweden, Canada, UK, etc.; (8) advance layout of concerns about the impact of legal currency: UK, etc
Diem’s development needs continuous attention: after Libra changed its name to diem, Diem’s stable currency has also become 1:1 linked to the US dollar. At the network level, Libra / Diem are also constantly compromising. Diem blockchain will implement a system to ensure legal compliance, that is, compromise to the centralized compliance process in the initial decentralized setting, so as to avoid AML / CFT and other problems. However, if Diem competes directly with fedcoin, it is difficult for fedcoin to compete with Diem’s “Facebook + WhatsApp + instagram” in terms of user resources, but diem, which is only linked to the US dollar, can help the Federal Reserve achieve its goal of maintaining US dollar hegemony. Diem’s underlying logic is similar to fedcoin, the central bank’s digital currency of the United States. There are still large unknowns in the implementation. We need to continue to pay attention to the Fed’s R & D plan for digital dollars and its attitude towards Diem.
Investment proposal and investment object
The application of digital RMB will bring new opportunities to relevant industries. We believe that bank it integrators and third-party payment manufacturers will first benefit from the implementation of digital RMB. It is recommended to pay attention to bank it system integrators Digital China Information Service Company Ltd(000555) (000555, buy), Yusys Technologies Co.Ltd(300674) (300674, not rated) and Shenzhen Sunline Tech Co.Ltd(300348) (300348, not rated); And third-party payment acquirers and POS manufacturers Lakala Payment Co.Ltd(300773) (300773, not rated), card transfer (09923, not rated), Newland Digital Technology Co.Ltd(000997) (000997, not rated), Hyunion Holding Co.Ltd(002537) (002537, not rated).
Risk statement
The landing process of digital RMB is less than expected; The construction of primary and secondary nodes is slower than expected or TPS is lower than expected; The stability test time of digital RMB core system is longer than expected
