Electronics

China Fund News Wu Yu

The pace of the digital renminbi is getting closer.

In the latest news, the digital RMB sub-wallet has been expanded again. One of the first domestic Internet banks (Alipay) became an early adopter and became the seventh commercial bank to participate in the public test site.

Digital RMB access to Alipay

On May 8, the digital renminbi App was updated, and the "Online Merchant Bank (Alipay)" in the wallet operating agency was now available.

At the same time, three sub-wallets of Ele.me, Hema Xiansheng, and Tmall Supermarket have been added to the digital renminbi wallets of the six state-owned banks of Industry, Agriculture, China, Construction, Communications, and Postal Savings, indicating that the digital renminbi has officially opened up the Alipay channel.

At the same time, according to netizens' screenshots, some users have already launched the "digital renminbi" function. It is reported that the function is still under test in a small range.

According to industry analysis, if the digital renminbi officially opens up the Alipay channel, it means that the digital renminbi wallet has opened up the mainstream payment interface with the Internet payment platform.

Data shows that as the largest third-party mobile payment platform in China, the Alipay application connects more than 80 million merchants and more than 2,000 financial institution partners, and more than 1 billion users in China, and penetrates a full range of life scenarios.

The digital renminbi App is the application platform for my country’s pilot digital renminbi. The six state-owned banks of industry, agriculture, China, China Construction, Communications, and Postal Savings have participated in it through the establishment of sub-wallets.

However, at present, another Internet bank, the WeBank sub-wallet of the WeChat port has not been activated in the Digital RMB App.

The recent big news about the digital renminbi continues

1. Appear at the Consumer Fair

Recently, the digital renminbi was unveiled at the Consumer Expo in Hainan, and the duty-free shops in the venue are already available. During the long holiday, Suzhou also launched the "Fifth Five-Year Shopping Festival" digital renminbi red envelope activity, which distributed a total of about 10 million yuan.

Frequent digital renminbi testing activities

Digital RMB has been piloted in many cities. By October 2020, six pilot areas of Shanghai, Hainan, Changsha, Xi'an, Qingdao and Dalian will be added to the digital RMB. In addition to the previous pilot areas such as Shenzhen, Suzhou, Xiong'an New District, Chengdu, and the Beijing Winter Olympics, the digital RMB pilot has formed a "10+1" pattern.

During February, Shenzhen, Beijing, Chengdu, Suzhou and other cities started red envelope pilots; then, in March, Dalian's first digital RMB B2B payment was launched;

In April, Zhou Xiaochuan, the former governor of the Central Bank of Asia, and Li Bo, the current deputy governor of the Central Bank of the Boao Forum for Asia, focused on the digital renminbi.

2. Scene increase

At the same time, the digital renminbi "flowering method" is constantly being renovated: from "sending red envelopes" to full consumption reduction, from offline to online, from mobile apps "scanning" to video cards and other hard wallets "touching" ...The application scenarios of digital renminbi gradually cover multiple fields such as life payment, catering services, transportation, shopping and consumption, and government services.

At the first China International Consumer Goods Expo (held from May 7th to May 10th), a number of banks launched a special area for digital RMB experience activities. Participants experienced 0.9% through the use of hardware wallet carriers such as mobile phones and visual chip cards. Yuan drinks Yangzhi nectar, freshly ground coffee, drinks hot drinks for 1 cent, and experiences novelty gashapons and other consumption scenes.

3. The first application scenario or landing in Suzhou

In addition, it is reported that civil servants in Suzhou are compulsory to install the digital renminbi App. From May, 50% of the transportation subsidy in the salary will be paid through digital renminbi. This indicates that the first application scenario of digital renminbi will be implemented in Suzhou.

4. The outlets of major state-owned banks began to comprehensively promote the opening of digital renminbi accounts

5. Internet institutions enter the market, and consumption scenarios increase

At the time of the first test, there were only a few Internet institutions such as JD.com and Jingxi. Nowadays, there are more consumer choices under each bank's sub-wallet.

During the May Day holiday, online travel representative company Ctrip also participated in the digital RMB App pilot. Currently, under the sub-wallet of Postal Savings Bank, Internet companies such as Tmall Supermarket, Suning Tesco, Didi, Ele.me, and Hema Xiansheng are all participating.

The consumption scene of CCB's sub-wallet also adds multiple applications such as Tuniu, Special Call, Star Charging, and SF Express.

E-commerce platforms of traditional institutions are also joining them, such as Shanrong Business, Postal Savings Life, and Petrochemical Finance.

6. Beijing Winter Olympics

The key time point and scenario for the follow-up digital renminbi is the Beijing Winter Olympics in February 2022. The market expects that relevant departments will use it as a starting point to promote the popularization of digital renminbi nationwide.

The most cattle concept stocks just closed 3 daily limit

Soaring 730% this year

Digital currency concept stocks have also received more and more attention from the market, and have frequently strengthened.

Among them, the most powerful concept stock has several new stocks, Chu Tianlong, and it has closed 3 daily limits in the last 3 trading days. So far, the stock has soared over 730% since its listing on March 22, and its latest market value reached 17.7 billion yuan.

According to data, the company is a multi-field provider of high-end smart cards and supporting software, smart terminal equipment, digital files, application platform systems and security solutions. On the interactive platform, investors have repeatedly asked about the company's participation in the digital renminbi.

In addition, the entire digital currency sector also rose for 4 consecutive days in the context of the current overall weakness of A shares.

The teacher of Huaxi Securities believes that the digital currency arms race has begun.

Since 2014, my country's central bank has been conducting research on digital currency for more than 5 years. The technology accumulation has already matured, and it is currently in the application pilot period. Among them, he pointed out that the catalysis of external events should not be ignored:

1. From the perspective of encrypted digital currency, the market will remain hot under the leadership of Bitcoin in 2021. Tesla, Meitu's entry into the market, and Coinbase's listing have become benchmark events. As of May 8, 2021, the price of Bitcoin has rebounded to around $57,700 after experiencing large fluctuations.

2. From the perspective of legal digital currency, the global arms race has begun. The Bank for International Settlements disclosed that currently 86% of central banks are actively studying the potential of CBDC, 60% of central banks are experimenting with this technology, and 14% of central banks are deploying relevant pilot projects.

The pressure of the external environment is expected to become a boost to force the implementation of digital currency. In late March, State Councilor and Foreign Minister Wang Yi held talks with Iranian Foreign Minister Zarif in Tehran, the capital of Iran, and signed a 25-year comprehensive cooperation agreement between China and Iran, focusing on the digital renminbi’s role in trade (including oil trade). Settlement, it is judged that the effective cross-border application of digital currency will effectively prevent the United States from suddenly cutting off the clearing business between Chinese financial institutions and overseas institutions. The internationalization of the RMB and the implementation of digital currency will be accelerated in concert.

No change to the existing payment pattern

Two major differences with WeChat and Alipay

When the digital renminbi was just launched, there was a view that the digital renminbi wallet would replace e-wallets such as Alipay and WeChat Pay. However, with the steady progress of the pilot program, people have found that multiple payment methods can coexist, and the digital renminbi has not changed the competitive landscape of the existing payment service market. Pilot users may use digital renminbi through Alipay for offline and online consumption.

According to experts, digital renminbi only converts the currency of users' electronic wallets from commercial bank deposit currency to central bank digital currency, while electronic wallets such as Alipay and WeChat Pay will continue to play their original role as wallet carriers.

From the summary of the current pilot situation, the fund manager shows that there are two major differences between the digital renminbi and Alipay and WeChat:

1. You can trade without the network

Compared with WeChat and Alipay, the main point of digital currency is to support dual offline transactions, which means that even if there is no network, transactions can be completed by "touching" between wallets, and the whole process is more convenient.

Some users said: "Especially when there is no network or the network is not good, digital renminbi can be used for offline payment, which improves the convenience and stability of transactions."

2. No "service fee" required

Everyone should know that cash withdrawals from WeChat and Alipay require handling fees. Fan Yifei, the vice governor of the People's Bank of China, previously published an article "Analysis of the Policy Implications for the Positioning of Digital RMB M0" and pointed out that the digital RMB does not count interest and is non-profit, pursuing the maximization of social benefits and social welfare. Therefore, the People's Bank of China implements a free strategy consistent with cash for digital renminbi. The People's Bank of China has established a free digital renminbi value transfer system and financial infrastructure, and does not charge the issuing layer for exchange and circulation service fees, and commercial banks do not charge individual customers for digital renminbi redemption and redemption service fees.