Digital RMB pilot expansion is more and more inclusive

Following the major state-owned banks, city commercial banks and rural financial institutions will also join the digital renminbi pilot process.

On August 13, City Bank Clearing Services Co., Ltd. and Rural Credit Bank Capital Clearing Center announced that the “One Point Access” digital RMB system was officially launched. On the evening of August 16, four city commercial banks, Bank of Shanghai, Bank of Jiangsu, Bank of Changsha, and Bank of Luzhou, connected to the digital RMB system through the City Bank Clearing Point. The Rural Credit Bank Center is also promoting the completion of business launches of 6 member units including Shenzhen Rural Commercial Bank.

Experts interviewed by a reporter from the Securities Times believe that city commercial banks, rural commercial banks and other institutions involved in digital renminbi business have expanded the scope of digital renminbi pilot projects, which can better mobilize market forces, and build more suitable for local cities and rural customers based on local urban and rural customer conditions. The promoted digital renminbi application scenarios have laid the foundation for the future promotion and wide application of digital renminbi across the country.

City commercial banks and other small and medium financial institutions “entered”

On the evening of August 16, according to the unified arrangement of the Digital Currency Research Institute of the People’s Bank of China, four city commercial banks, namely Bank of Shanghai, Bank of Jiangsu, Bank of Changsha, and Bank of Luzhou, connected to the digital RMB system through the City Bank Clearing Point. Customers of the four city commercial banks can bind the bank card of the bank after opening the digital renminbi wallet in the digital renminbi APP, and complete the digital renminbi exchange (redemption and redemption). Detailed operating instructions have been released on the official WeChat accounts of the four city commercial banks.

“As the first batch of commercial banks in the country and Hunan’s first digital RMB pilot city, this is a key step for the bank to fully participate in the promotion of digital RMB ecological construction, and it is also a major breakthrough in Hunan’s deepening of the innovative digital RMB pilot circulation service model.” Bank of Changsha The relevant person in charge said.

A reporter from the Securities Times learned that City Bank Clearing signed a strategic cooperation agreement with the Digital Research Institute on September 28, 2020, and the two parties agreed to cooperate in digital renminbi application projects. City Bank Clearing Point is connected to the digital RMB interconnection platform, and provides services for small and medium-sized financial institutions such as city commercial banks and private banks to access the interconnection platform. Under the meticulous organization of the Institute of Mathematics, City Bank Clearing built a point-to-point digital RMB system, and assisted in organizing the first batch of 11 pilot city commercial banks to complete the development and testing of the bank system.

On August 12, City Bank Clearing and Bank of Nanjing successfully connected to the digital renminbi interconnection platform, supporting transactions such as tying, redeeming, and redeeming digital renminbi wallets.

As of August 12, City Bank Clearing has confirmed that 24 city commercial banks have access to the digital RMB interconnection platform through City Bank Clearing. Another 94 banks (76 city commercial banks, 15 private banks and 3 foreign banks) intend to access the digital RMB interconnection platform through city bank clearing. In the next step, City Bank Clearing will be implemented in batches under the organization of the Digital RMB pilot city based on the digital renminbi pilot city layout, and will actively play the role of financial infrastructure serving small and medium-sized financial institutions.

Wang Shiqiang, a senior researcher at Bingjian Technology Research Institute, told a reporter from the Securities Times that the reason why small and medium-sized banks are widely involved in digital renminbi is that, on the one hand, digital currency has many advantages compared with traditional banknotes. It represents the trend of future currency use and requires banks to make arrangements in advance; On the other hand, this new thing can attract a large number of customers who are interested in digital RMB to download the bank APP, activate a group of old customers by the way, and may also drive other bank businesses.

“In the future, all scenarios will try the application of digital renminbi. But this is a gradual process. Judging from the current promotion methods, it is preferred to promote in consumer scenarios, and it may also extend to credit, stock investment, derivatives investment, etc. in the later period. In the field, when the technology is mature, it may go overseas to realize the internationalization of the digital renminbi.” Wang Shiqiang said.

Application pilots in rural areas are gradually “rolled out”

Improving the level of financial inclusion is one of the tenets of the digital renminbi. At present, the coverage of the digital economy continues to expand, and the demand for online financial services from the people in underdeveloped and remote areas is increasing. The digital renminbi is a new, safe and inclusive retail payment infrastructure built under this background. As more rural commercial banks access, the inclusiveness of digital renminbi will become more apparent.

On August 13, Hebei Rural Credit Union customers completed the first production verification of the digital RMB exchange business through the Digital RMB APP, marking the official launch of the “One-Point Access” digital RMB system of Rural Credit Bank Center, and also showing that the digital RMB is in rural areas. The application pilot work has achieved important phased results.

In accordance with the unified deployment of the central bank, the Rural Credit Bank Center acts as an agent for the “one-point access” digital renminbi system of rural small and medium-sized financial institutions across the country. Strategic work.

The Rural Credit Bank Center stated that it will continue to promote the completion of the first batch of other 6 member units (Jiangsu, Sichuan Rural Credit, Shenzhen Rural Commercial Bank, Suzhou, Chengdu Rural Commercial Bank and Suzhou Bank) in accordance with the work arrangements of the Digital Currency Institute. And orderly promote the “one-point access” digital renminbi system of member units in other pilot regions, and make greater contributions to steadily advancing the pilot application of digital renminbi in rural areas, promoting inclusive finance and helping rural revitalization.

“City commercial banks and rural commercial banks involved in the digital renminbi business can better mobilize market forces and build digital renminbi application scenarios that are more suitable for local promotion based on local urban and rural customer conditions. It also reflects the fairness and justice in digital renminbi promotion. Give more financial institutions the opportunity to participate in the digital renminbi.” said Hao Yi, a postdoctoral fellow at the School of Finance, Renmin University of China.

Zhao Rui, a professor at Beijing Union University, told a reporter from the Securities Times that the participation of city commercial banks and rural commercial banks has expanded the scope of digital renminbi pilot projects and further stress-tested the stability of my country’s digital renminbi system. The service scenario advantage participates in the digital renminbi business, and lays the foundation for the future promotion and wide application of the digital currency renminbi in various regions across the country.

 

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