On January 6, the General Office of the State Council issued the “Overall Plan for the Comprehensive Reform of the Market-Based Allocation of Factors”, which pointed out that it supports the pilot use of digital renminbi in retail transactions, life payment, government services and other scenarios.
Since the pilot of the digital renminbi, application scenarios have continued to penetrate. As of October 8, 2021, the number of digital RMB pilot scenarios has exceeded 3.5 million, an increase of 2.18 million compared to the end of June, covering life payment, catering services, transportation, shopping consumption, government services and other fields .
In November 2021, Hainan Province issued the “14th Five-Year Plan for the Development of the Financial Industry in Hainan Province”, proposing to carry out a pilot program of digital renminbi throughout the island; during the Beijing Winter Olympics, the digital renminbi will achieve full coverage of all scenarios in the closed-loop area; On January 4, 2022, the digital RMB (pilot version) APP was launched, and more than 40 merchants such as Meituan, Ele.me, Tmall Supermarket, Didi, and Ctrip were linked…
The application of digital renminbi is continuously achieving “deepening” development. The application scenarios have expanded from pure offline to “offline + online” integration, extending from the C-end to the B-end.
Beginning in 2021, the digital renminbi has begun to enter people’s daily lives. The pilot test has been steadily advanced, the application scenarios have become increasingly rich, and the participants have continued to expand. In 2022, the application ecology and transaction scale of digital renminbi will be further improved. In order to fully demonstrate the basic picture and future development of the digital RMB ecosystem, 01 Blockchain and Zero One Think Tank will launch the “Digital RMB Ecosystem Development Report”, and relevant institutions are welcome to provide innovative practice cases.
The C-side is dominated by retail scenarios, and the launch of the APP accelerates the promotion of application scenarios
- Retail scenarios are the main landing scenarios, and housing rental and financial transaction scenarios are less used
Digital RMB is based on M0 positioning and is mainly used for retail payment. The application scenarios are currently mainly concentrated in retail scenarios such as catering services, shopping consumption, leisure and entertainment, and transportation. By sorting out the promotion and application of various pilot areas, 01 blockchain has classified digital RMB application scenarios into 13 categories.
Table: Incomplete statistics on the C-side scenarios of the digital RMB pilot
Source: 01 Blockchain
It can be seen that each pilot area covers 9 major scenarios including catering services, shopping consumption, leisure and entertainment, tourism, transportation, hotel accommodation, life payment, government services and consumption poverty alleviation. Among them, catering services, shopping consumption and leisure Entertainment is the main offline application scenario.
In the transportation and travel scenarios, in addition to the main application scenarios of digital renminbi in public transportation and subways in each pilot area, Beijing, Shanghai, Hainan, Shenzhen, Suzhou, Changsha, Xi’an, Chengdu, Xiong’an New Area and other 9 places also cooperate with Meituan The app launched a digital RMB cycling event, and Hainan realized the use of digital RMB to purchase long-distance bus tickets in the province.
In the medical and health field, digital renminbi is mainly used in pharmacy consumption, and it has yet to be promoted in hospital payment scenarios. At present, in the scenario of the East Olympics, 23 designated hospitals have supported the acceptance of digital renminbi. Digital RMB medical scene payment has also been implemented and piloted in Changning District, Shanghai. Beijing’s Haidian District also regards health and other fields as key application scenarios for the digital renminbi in 2022.
In the campus scene, many institutions including Renmin University of China, Soochow University, Hainan University, etc. have launched digital RMB payment applications. The campus scene is a characteristic application scene. Although there are certain limitations in the physical scope, students are highly receptive to new things, which plays an important role in promoting the use and promotion of digital RMB.
At present, application scenarios such as housing leasing and financial transactions have yet to be explored and developed. In the housing leasing scenario, the digital renminbi is used in the repayment of provident personal loans, rental housing tax payment, rent and deposit payment, etc.; in the financial transaction scenario, Beijing is purchasing paid financial services and investing in OTC wealth management products. Explore the pilot application of digital renminbi; Shenzhen, Suzhou, Beijing, Dalian, etc. have applied digital renminbi to online insurance scenarios, and users can use digital renminbi for premium payment and settlement.
- The digital RMB (pilot version) APP was launched, setting off an application boom
With the launch of the digital renminbi (pilot version) APP, the scale of users covered by digital renminbi has been further expanded, and users can open a digital renminbi wallet with their mobile phone numbers in the pilot areas; the operating agencies have been further expanded, including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank. , Bank of Communications, Postal Savings Bank, China Merchants Bank, MYbank (Alipay) and WeBank (WeChat Payment); users can set up a “sub-wallet” under the operating agency’s main wallet, and the “sub-wallet” covers Meituan and Meituan , Ele.me, Tmall Supermarket, Didi, Ctrip, Suning.com, Tuniu and more than 40 merchants, involving shopping consumption, transportation, life services, tourism and other scenarios.
At the same time as the launch of the digital RMB (pilot version) APP, Meituan, Tencent, Xiaomi, etc. have all disclosed the connection of digital RMB. The Meituan food delivery scene has opened a digital RMB payment channel; users can choose the digital RMB payment method when using WeChat payment; Xiaomi Mall officially launched the digital RMB payment service.
The launch of the digital RMB APP will promote access to more application scenarios, and the application ecosystem will further penetrate and expand. As of January 10, 2022, the digital RMB (pilot version) APP has been downloaded more than 5.9 million times in the Huawei App Store, ranking first in the financial software rankings in the Apple App Store.
Pilot areas and participating institutions enter the game, and the scene extends from the C-end to the B-end
While the C-side scenario is increasingly infiltrating, pilot areas and participating institutions are also constantly exploring the B-side application of digital renminbi. With its payment function, digital renminbi can run through various scenarios of enterprise operations and realize the integration of “capital flow + information flow”, thereby accumulating more data resources and better realizing the digital transformation of enterprises.
- The pilot areas have expanded from tax payment to insurance, e-commerce public payment and other scenarios
Tax payment is a popular application scenario for digital RMB. Many regions, including Shenzhen, Shanghai, Beijing, Changsha, Qingdao, Hainan, and Xiong’an, have launched digital RMB tax payment services. Among them, Changsha and Xiong’an have also realized corporate tax payment.
In addition, Shanghai has implemented corporate digital renminbi insurance policies; Dalian and Hainan have combined their port advantages to use digital renminbi for futures delivery, e-commerce settlement, port payment and other scenarios.
- Operating agencies, third-party payment agencies, scene parties and other layout B-side scenarios
In terms of institutional layout, as one of the digital renminbi operators, Bank of Communications plans to further expand the digital renminbi consumption scenarios to include government affairs payment, corporate trade, cross-border payment and other fields, and explore new scenarios for platform transactions.
Lakala said that there is a strong demand for digital renminbi payment in the B-to-B market, and the company’s next focus is to enter the B-to-B business through digital renminbi to provide a more efficient and convenient payment solution for inter-enterprise payments.
JD.com uses digital renminbi to pay for its suppliers Ziguang Digital and Chongqing New Rishun, and explores the application of digital renminbi in corporate payment scenarios. In addition, JD.com has enabled third-party merchants to access the digital renminbi system, becoming the first batch of enterprises in the country to support the use of digital renminbi by “self-operated + third-party merchants”.
The e-commerce center of the National Energy Group Materials Company uses digital RMB to complete B2B online payment transactions on the “Guoneng e-purchase” platform.
Analysis of characteristic scenarios: rural revitalization, green finance, cross-border payment
- rural revitalization
Payment services are the cornerstone of an inclusive financial system. The original intention of the central bank to promote digital renminbi is to promote the development of inclusive finance. Therefore, combining with the “three rural” scenarios to help rural revitalization is an important application area of digital renminbi.
At present, in the “Sannong” scenario, agricultural product trading is the main application scenario of the digital renminbi. Through “government-bank cooperation”, each pilot area has embedded digital renminbi into agricultural product trading scenarios, used smart contracts to improve the management efficiency of agricultural-related funds, and improved digital renminbi payment and settlement services. At the same time, the central bank also jointly launched a digital renminbi hardware wallet, which can alleviate the problem that some people do not use or dare not use electronic products.
- green finance
The digital yuan is seen as an important part of green finance. The digital renminbi can save the cost of currency circulation and the paper needed to print cash, which itself is a green and low-carbon currency tool and payment tool. Moreover, the digital renminbi has programmable properties and can be loaded with smart contracts for more complex payment functions such as conditional payment.
For example, in the process of carbon emission rights trading, market bidding is often required, and agreed conditions need to be implemented. Digital RMB loaded with smart contracts can be used as an intelligent pricing tool and payment tool; similarly, in the field of green credit, the application of digital RMB It can eliminate man-made operational risks in information disclosure, internal control, etc., trigger the application of funds through agreed conditions, and reduce the improper use of green financial funds.
At present, some institutions represented by Meituan have taken the digital renminbi as a breakthrough for the development of green finance. Starting from the bicycle pilot, Meituan has continuously implemented the low-carbon application of digital renminbi to business scenarios such as take-out, dining, and wine travel.
In September 2021, in the first month of the launch of the digital RMB cycling event launched by Meituan and 9 cities, it has attracted more than 1 million users to open digital RMB personal wallets, generating a total of 8.8996 million green cycling kilometers. Compared with driving a fuel vehicle, it is expected to reduce carbon emissions by about 2,400 tons under the same transportation volume, and users who have opened a digital RMB personal wallet choose green travel more frequently than ordinary users by an average of 8.14%; The group announced that it will further expand the carbon neutrality pilot of digital renminbi. On the Meituan platform, as long as they participate in green and low-carbon consumption behaviors, they will receive a certain amount of digital renminbi rewards; starting from January 5, 2022, residents of digital renminbi pilot cities nationwide When ordering takeout on the Meituan App and Meituan Takeaway App, you can already pay for meals through digital RMB.
- Cross-border payment
Seizing the opportunity of digital renminbi development and promoting the application of cross-border payment scenarios will help promote the internationalization of renminbi. Due to the relatively complex application of digital renminbi in cross-border payment scenarios, it is still in the preliminary stage of exploration.
In February 2021, the central bank, the Bank for International Settlements, the Bank of Thailand, the Central Bank of the United Arab Emirates and the Hong Kong Monetary Authority jointly launched the multilateral central bank digital currency bridge (mCBDC bridge) project to jointly study the role and technical feasibility of central bank digital currency in cross-border payments .
In November of the same year, the multilateral central bank digital currency bridge research project released a use case manual, which introduced 15 potential application scenarios including international trade settlement, cross-border e-commerce, and supply chain finance. This test verifies the feasibility of the currency bridge test platform to improve the efficiency of cross-border payment in the international trade settlement scenario, and also realizes the business linkage between the currency bridge and the People’s Bank of China’s trade finance blockchain platform and the Hong Kong trade linkage platform. Joint verification of order financing business and cross-border payment capability of Currency Bridge.
In March 2021, Shenzhen launched a digital RMB cross-border payment test, mainly for two types of residents in Hong Kong. One is Hong Kong residents who often travel to Shenzhen, who can use the Hong Kong Resident Travel Permit for real-name authentication; the other is occasional visitors to Shenzhen. Hong Kong residents, i.e. residents who only hold Hong Kong resident identity cards, can anonymously open five types of digital RMB wallets through their Hong Kong mobile phone numbers. After successful testing and verification, Hong Kong residents can use their Hong Kong mobile phone numbers to anonymously register and open five types of digital RMB wallets for small-amount consumption. When purchasing goods, they only need to show the payment code to complete the payment through the POS machine.
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