Digital renminbi frequently landed in government affairs scenarios: digital government affairs have a vast space

News from the mobile payment network: Since the digital renminbi was piloted, the application scenarios have continued to expand, and it currently covers various fields such as life payment, catering services, transportation, shopping and consumption, and government services.

According to the latest disclosure by Governor Yi Gang, as of October 8 this year, there have been more than 3.5 million digital RMB pilot scenarios.

Accelerated implementation of government services, involving various payment and tax scenarios

On November 14th, the Xiong’an New District Housing Management Center and the Hebei Xiong’an Branch of the Construction Bank successfully handled the nation’s first digital renminbi payment of special residential maintenance funds, with a payment amount of more than 50,000 yuan.

On November 4th, Sichuan’s first and the first batch of digital RMB tax collection, social security and medical insurance offsite payment scenarios officially landed in Chengdu. Ms. Chen, who came to work in Chengdu, came to the tax hall and used digital renminbi to pay the medical insurance premiums for urban and rural residents online for her son and mother in her hometown. She became the first insured person in Sichuan to use digital renminbi to pay online premiums.

On November 4, Sichuan’s first digital renminbi payment social security service was officially launched at the tax window of Chengdu Tianfu New District.

On November 5th, the Xiong’an New District Housing Management Center and Bank of China Hebei Xiong’an Branch successfully implemented the first digital RMB unit payment and deposit housing provident fund business in the New District, with a deposit amount of more than 210,000 yuan.

In early November, Mr. Chen from Hong Kong, China, who started his business in Shenzhen, declared his personal income tax for September at the Tax Service Office of Shenzhen Qianhai Taxation Bureau and successfully paid taxes using the CCB digital RMB wallet. It has achieved the success of Hong Kong people’s tax payment, and it is also the country’s first taxpaying innovation scenario that supports full-tax, digital RMB full-operating institutions. 

On November 1st, at the entrusted collection point for rented houses set up by the Taxation Bureau of Dongcheng District, Beijing, on Tiyuguan Road Street, the citizen Mr. Yang paid a tax corresponding to individual renting out his own house through the digital RMB he held. Successfully issued a value-added tax invoice. This is also the city’s first digital renminbi payment commissioned tax collection service handled by the Municipal Taxation Bureau. 

In the past two months, the digital renminbi has rapidly expanded its application scenarios for payment and tax payment, involving payment of special residential maintenance funds, payment of insurance premiums, payment of housing provident funds, and payment of personal income taxes. 

Earlier, the digital renminbi had actually been implemented in terms of paying utility bills, paying taxes online, and issuing financial subsidies.

The G-end market is vast, and the digital RMB needs to get rid of the “retail” label

Digital renminbi is a digital legal currency issued by the People’s Bank of China. It is operated by a designated operating institution. It is based on a broad account system and supports the loose coupling function of bank accounts. It is equivalent to the physical renminbi and has value characteristics and legal compensation.

The “White Paper on the Research and Development of Digital Renminbi” issued by the Central Bank clearly explains that its main implications include five points: First, the digital Renminbi is the legal tender issued by the Central Bank. Second, the digital RMB adopts centralized management and two-tier operation. Third, digital renminbi is mainly positioned as a cash payment voucher (M0), and will coexist with physical renminbi for a long time. Fourth, the digital renminbi is a retail central bank digital currency, mainly used to meet domestic retail payment needs. Fifth, in the future digital retail payment system, the digital renminbi and the electronic account funds of designated operating institutions are universal, and together constitute a cash payment tool.

Yi Gang also stated in his latest speech that the current digital renminbi is designed and used mainly to meet domestic retail payment needs. 

However, when it comes to “retail payment”, many people may think that digital renminbi is still mainly an offline retail consumption scene, but in fact, in addition to the retail scene, the G-side “government” service scene also has good room for development.

As we all know, in the past, due to historical legacy or problems with the charging system, the charging of many government affairs scenes had the tradition of “cash only”, which made many users feel inconvenient. However, due to the development of mobile payment and Internet technology, the illegal phenomenon of “rejecting cash” has appeared in some charging scenarios. For these two completely different phenomena, the emergence of digital renminbi can be perfectly solved. On the one hand, it guarantees the legal reimbursement of legal currency. On the other hand, the digital form is more in line with the requirements of the development of the times and is more convenient and faster. 

Some experts have suggested that the epidemic may become a catalyst for the digital economy, and the construction of digital infrastructure and digital infrastructure will accelerate. The digital renminbi will become a new “special fund” for government departments to stimulate the economy.

In fact, this is indeed the case. So far, the digital renminbi pilot has carried out activities in the form of “red envelopes”, from the initial pilot area to a wide range of lottery and distribution to red envelopes for specific scenarios and specific uses. The use of smart contracts obviously makes it possible for the “special” use of the digital renminbi, which can be applied to public welfare and targeted poverty alleviation in conjunction with government departments. 

Digital government services can be said to control the high-stick users and high-frequency transaction scenarios of the local local economy, including social security, medical health, transportation, police safety, life payment, electronic certification, play reservations, and so on. These are also the high ground that third-party payment companies desperately want to occupy in the mobile Internet era, and most of them can be handled through online channels.

Regardless of whether it is online or offline, the combination of digital renminbi and digital government affairs in various places will help make the digital renminbi penetrate into the daily lives of ordinary people faster and more closely.

Concluding remarks

Judging from the expansion of the digital renminbi scenario in the second half of the year, government service scenarios such as tax payment have become a key area where various operating agencies are striving to land first. 

At the moment when financial inclusion is being implemented, the loose coupling of digital renminbi accounts can help more unbanked users access financial services at a lower threshold, while government services, as a combination of rigid demand and digital renminbi, can help more people more easily Complete payment for various life and government services.

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