Mobile payment network: June 15 news, in order to enrich the construction of digital RMB operation system and continuously improve the promotion of digital RMB application, the head office of Bank of Communications and Bank of Hainan cooperated to explore the development mode of digital RMB 2.5 layer operation system, and Bank of Hainan also became the first local legal person bank in Hainan Province to pilot digital RMB application and build digital RMB operation system.
It is reported that the Bank of Communications and the Bank of Hainan signed a digital RMB cooperation agreement in March this year, and the two sides quickly entered into system docking and development to jointly build the digital RMB 2.5 layer system application.
Specifically, digital RMB is a legal tender in digital form issued by the People’s Bank of China. Bank of Communications as the operating institution (2.0 layer) is authorized by the People’s Bank of China to issue digital RMB as an agent; Bank of Hainan as the circulating institution (2.5 layer) relies on the digital RMB wallet of the operating institution to provide customers with financial services such as fund flow, payment and settlement. The Bank of Communications is currently the first operator in Hainan to support digital RMB cooperation with local banks in Hainan. The Bank of Communications digital RMB wallet is bound to the Bank of Hainan savings card, and holders of the Bank of Hainan savings card can experience and use the digital RMB.
It is no coincidence that on June 11, news that Bank of Xi’an successfully implemented mobile banking access to digital RMB on May 21, 2021, becoming the first batch of banking financial institutions in China and the first legal institution in Shaanxi Province to access digital RMB through the interbank agency model.
It is reported that Bank of Xi’an has quickly launched the digital RMB personal wallet function, which allows users to manage digital RMB through Bank of Xi’an Mobile Banking and complete various functions such as card-tying, bank deposit, wallet filling, transferring funds and checking transaction details. On the one hand, it will introduce the public wallet function, including opening, querying, cashing out and cashing back, to improve the public service level; on the other hand, it will promote the transformation of merchant acceptance, so that cooperative merchants can accept digital RMB and effectively broaden the use scenarios of digital RMB.
According to mobile payment network, a number of local commercial banks in the pilot cities have joined the circulation of digital RMB by docking to the operating institutions (6 major banks as well as online merchants and WeChat), including Changsha Bank, Bank of Suzhou, Bank of Shanghai, etc. There are also some local agricultural and commercial banks that can access the digital RMB not only by docking to the operating institutions directly, but also through agricultural credit banks and city bank clearing institutions, but there is less public information in this regard.
The addition of commercial banks to the digital RMB circulation system will, on the one hand, facilitate the operators to support the binding of their bank cards and increase the exchange and withdrawal channels of digital RMB wallets; on the other hand, the commercial banking industry will also add another personal wallet opening portal for the operators to provide digital RMB related services.
But what can commercial banks get from providing an entrance for the operator and opening the operator’s digital RMB wallet?
In fact, it is understood that at present, commercial banks do not have too many practical benefits for themselves, and as a 2.5 layer service provider, the role of commercial banks is similar to other service providers, and the business model is still in a stage of exploration and discussion. For example, when the digital RMB is officially launched, will the accessing commercial banks have certain revenue in opening new users, and will there be a certain fee for the exchange of digital currency through the bank’s card? These are all topics worth exploring in the future.
All in all, the digital RMB is still in the pilot stage and many business scenarios are still in an early stage of exploration, while the business model also needs to be explored, after all, all parties need to have certain points of interest to better promote the development of the digital RMB ecosystem after the official launch.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/2-5-tier-institutions-xian-bank-and-hainan-bank-have-joined-the-digital-rmb-ecosystem/
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