The central bank held a symposium on the pilot work of digital RMB research and development, and the third batch of pilot cities were launched
According to the disclosure on the official website of the people’s Bank of China, on March 31, 2022, the people’s Bank of China held a symposium on the pilot work of digital RMB research and development, summarized the pilot work of early research and development, and arranged and deployed the work of the next stage. Yi Gang, President of the people’s Bank of China, and fan Yifei, vice president of the people’s Bank of China, attended and addressed the meeting. The meeting held that at present, digital RMB has formed a number of application modes covering Wuxi Online Offline Communication Information Technology Co.Ltd(300959) , replicable and popularized in the fields of wholesale and retail, catering, culture and tourism, government payment, etc. major pilot projects such as the scenes of 2022 Beijing Winter Olympic Games and winter Paralympic Games have been successful, the number of users, merchants and transaction scale participating in the pilot has increased steadily, and the market response has been good. The meeting stressed that the pilot scope should be expanded in an orderly manner. On the basis of the existing pilot areas, six cities hosting the Asian Games in Tianjin, Chongqing, Guangzhou, Guangdong Province, Fuzhou, Xiamen, Fujian Province and Zhejiang Province should be added as the pilot areas. Beijing and Zhangjiakou, Hebei Province will become the pilot areas after the 2022 Beijing Winter Olympic Games and winter Paralympic Games.
Digital RMB has experienced two rounds of pilot projects, and the current development has entered the fast lane
From the perspective of pilot cities, at the end of 2019, the central bank carried out the first batch of pilot tests of digital RMB in Shenzhen, Suzhou, xiong’an, Chengdu and 2022 Beijing Winter Olympics. From November 2020, six new pilot areas will be added: Shanghai, Hainan, Changsha, Xi’an, Qingdao and Dalian. At present, two rounds of 10 pilot cities and one pilot scenario have been running for nearly two years, and the application scenarios have also covered the fields of living payment, catering services, transportation, shopping consumption, government services and so on.
From the perspective of the use of digital RMB wallets, Zou LAN, director of the financial market department of the central bank, introduced at the press conference of the state information office on January 18 that “as of December 31, 2021, there have been more than 8.0851 million digital RMB pilot scenes, 261 million personal wallets have been opened, and the transaction amount is 87.565 billion yuan”. Combined with the relevant data as of June 30, 2021 disclosed in the previous white paper on the research and development progress of China’s digital RMB, the number of digital RMB pilot scenarios has increased from 1.32 million to 8.09 million in half a year, and the number of personal wallets has increased from 20.87 million to 261 million. The development has entered the fast lane.
The expansion of pilot cities is expected to drive new demand, and the Asian Games may become another important display window
In terms of the scope of pilot cities, the new 11 pilot cities cover relevant cities in the north, southwest and South China, forming a good complementarity with the previous two batches of pilot cities. So far, the pilot of digital RMB has covered typical regions such as East China, South China, North China, southwest, northwest and Northeast China, forming a national development pattern. On the other hand, the pilot cities include six host cities of the Asian Games in Zhejiang Province (hosted by Hangzhou and co hosted by Ningbo, Wenzhou, Jinhua, Shaoxing and Huzhou), accounting for 55% of the total 11 pilot cities. We think this reflects the importance of the Asian Games scene in the digital RMB pilot. Combined with the pilot demonstration role of the previous Beijing Winter Olympic Games scenario, we believe that the Asian Games will become another important window for the international display of digital RMB, and the digital RMB application scenario around the Asian Games is expected to continue to expand.
From the application scenarios of the pilot cities, combined with the promotion of digital RMB in the previous two batches of pilot cities and the work symposium of the central bank, the application of digital RMB may first stimulate people’s enthusiasm in the form of red envelopes and realize the initial coverage of offline retail stores. In addition, in addition to the wholesale and retail, catering, cultural tourism, transportation and other industries closely related to people’s daily life, in the future, digital RMB is expected to be more combined with informatization in the field of government affairs, and explore payment applications under a variety of government scenes, such as tax related business, law enforcement cases, real estate transactions and other scenes, which is expected to become an important incremental scene of digital RMB.
Focus on investment opportunities of digital RMB industrial chain
We believe that the digital RMB industry chain mainly includes five types of enterprises, and we suggest paying attention to the investment opportunities of relevant listed companies: 1) application scenario Enterprises: Zhejiang Zhengyuan Zhihui Technology Co.Ltd(300645) , Newcapec Electronics Co.Ltd(300248) ; 2) Financial machinery enterprises: Grg Banking Equipment Co.Ltd(002152) , Newland Digital Technology Co.Ltd(000997) , Xgd Inc(300130) , Urovo Technology Co.Ltd(300531) , Shanghai Guao Electronic Technology Co.Ltd(300551) ; 3) Bank IT enterprises: Digital China Information Service Company Ltd(000555) , Shenzhen Sunline Tech Co.Ltd(300348) , Yusys Technologies Co.Ltd(300674) , Client Service International Inc(300663) , Northking Information Technology Co.Ltd(002987) , Global Infotech Co.Ltd(300465) , Tansun Technology Co.Ltd(300872) , Beyondsoft Corporation(002649) ; 4) Payment institution: Lakala Payment Co.Ltd(300773) ; 5) Encryption algorithm Enterprises: Beijing Infosec Technologies Co.Ltd(688201) , Feitian Technologies Co.Ltd(300386) , Beijing Certificate Authority Co.Ltd(300579) , Koal Software Co.Ltd(603232) , Jilin University Zhengyuan Information Technologies Co.Ltd(003029) . Combined with the situation of the third batch of pilot cities, we suggest to focus on the digital RMB construction of the Hangzhou Asian Games, especially the digital RMB application enterprises with strong competitive advantages in the Zhejiang market.
Risk tips
The strength of digital RMB policy is less than expected, the maturity of digital RMB technology is less than expected, the construction cost of digital RMB system is more than expected, and the calculation of market scale is less than expected.
