Recently, the EU increased sanctions against Russia and Belarus, targeted 160 individuals in Russia, and cut off the connection between three Belarusian banks and swift (Global Interbank Financial Communication Association) system. Due to changes in the international environment, a diversified cross-border payment system is being established.
Changes in the international situation are good for CIPS and digital RMB. Swift is the most important financial information transmission platform in the world. The adoption of swift sanctions by Europe and the United States against Russia will be good for CIPS. CIPS (cross border interbank payment system) is China’s RMB cross-border payment system. CIPS direct participants can bypass swift and realize the settlement and payment of cross-border funds through RMB. The current changes in the international environment are good for CIPS and play a leading role in the development of digital RMB related industries.
Policy catalysis, CIPS accelerated. On February 16, president Xi Jinping and French President macron talked about the hope of supporting more French banks and financial infrastructure to access CIPS. China will actively examine and approve the application for financial qualification of French funded banks in accordance with relevant procedures and standards. CIPS operation organization was established in September 2015. As of March 2022, CIPS has 76 direct participants and 1212 indirect participants. At the end of 2019, the number of direct participants increased by 130.3%, compared with that of direct participants at the end of 2019 (+ 12.3%). With favorable policies, CIPS access is accelerating.
The “10 + 1” pilot is expected to expand, and the digital RMB will advance steadily. Following the promotion of digital RMB in 10 pilot areas, digital RMB began to enter the “full test” stage. During the Winter Olympics, the number of digital RMB landing scenes reached 403000, with a transaction amount of 9.6 billion yuan. The “10 + 1” pilot has effectively verified the system stability, product ease of use and scenario applicability of digital RMB, and the conditions for further expansion of the pilot scope are ripe. According to media reports, the third batch of digital RMB pilot areas in China will appear soon, and Tianjin, Hangzhou, Fuzhou and other areas are expected to be selected.
The application scenarios are becoming richer and richer, and the digital RMB industry chain is extending. The application scenario of digital RMB has been gradually expanded. The coverage has gradually expanded from shopping consumption and catering services to industrial Internet, cross-border trade, smart city, public services and other fields, and the user range has been expanded from C-end to b-end and g-end. At the same time, the capacity of digital RMB operators was further expanded. In addition to the six state-owned banks of China, agriculture, industry, construction, transportation and postal savings, China Merchants Bank Co.Ltd(600036) , Weizhong bank and e-commerce bank also joined the ranks of promotion. With the steady progress of digital RMB, business digital transformation and upgrading will give birth to new opportunities, and relevant industrial chains such as bank IT systems, Payment institutions and acceptance terminals will be further developed.
It is recommended to pay attention to:
The accelerated development of CIPS will drive the construction of relevant system facilities, including standard transceivers, commercial bank interfaces and relevant business tests. It is recommended to pay attention to Tansun Technology Co.Ltd(300872) , Beijing Infosec Technologies Co.Ltd(688201) , Yunnan Nantian Electronics Information Co.Ltd(000948) , Yusys Technologies Co.Ltd(300674) , Venustech Group Inc(002439) .
Risk warning: the implementation of the policy is less than expected; Technological advancement was less than expected.
