Nearly ten banks have launched digital RMB business to analyze the entry mode of non-operating institutions

Recently, the Internet Finance Department of China Minsheng Bank released a digital renminbi management position, and the intention behind it is self-evident. The 21st Century Business Herald reporter noted that, in addition to the six state-owned banks that are designated operating institutions, some commercial banks in the pilot cities are actively joining the digital renminbi system. Nearly ten banks have stated that digital renminbi services have been implemented, including personal and corporate digital renminbi wallet opening, recharging, inquiries, and reconciliation.

According to the design of the operation system of the central bank, the digital RMB adopts centralized management and two-tier operation. Operating agencies mainly include ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank, China Mobile and ICBC, China Unicom, Telecom, and Bank of China respectively set up joint project teams to participate in research and development. Two Internet companies, Ant and Tencent, also have Internet merchants and WeBank. Participate in research and development.

Under this framework, in what form do commercial banks that are not operating institutions join the digital renminbi system? What is the significance of the joining of these commercial banks to themselves, their cooperative operating institutions, and the construction of the digital RMB system?

Nearly ten banks have launched digital RMB business to analyze the entry mode of non-operating institutions

According to the official definition, digital renminbi is a digital form of legal tender issued by the central bank. It is operated by a designated operating agency. Based on the broad account system, it supports the loose coupling function of bank accounts. It is equivalent to the physical renminbi and has value characteristics and legal compensation. -Visual China

Be the first to prepare for the digital RMB, seeking cooperation and recruiting talents with both hands

According to the official definition, digital renminbi is a digital form of legal tender issued by the central bank. It is operated by a designated operating agency. Based on the broad account system, it supports the loose coupling function of bank accounts. It is equivalent to the physical renminbi and has value characteristics and legal compensation. According to the plan, the first batch of pilot work will be carried out in Xiongan, Shenzhen, Suzhou, Chengdu and the Beijing Winter Olympics, and then Shanghai, Changsha, Hainan, Qingdao, Dalian, Xi’an and other regions will be added to form a “10+1” pilot. pattern.

Among the first batch of pilot cities, commercial banks in Suzhou and Shenzhen are more active. Among them, Suzhou Rural Commercial Bank has realized the closed loop of personal and public digital RMB business, becoming the first rural commercial bank in the country to realize the closed loop of digital RMB full-process business; Suzhou Bank has participated in the Suzhou digital RMB red envelope activity, with digital RMB payment and acceptance Business capabilities: Kunshan Rural Commercial Bank opened a trial of digital RMB acquisition for 10 merchants. According to Fan Yifei, deputy governor of the central bank, China Merchants Bank has recently been approved to join the digital renminbi operation. The reporter noticed that when recharging the CCB wallet in the digital renminbi APP, you can choose China Merchants Bank and China CITIC Bank to recharge.

Among the second batch of pilot cities, Shanghai, Changsha, Xi’an, and Hainan all have commercial banks that have implemented digital RMB business. Among them, Bank of Shanghai’s mobile banking app can apply for digital renminbi. After downloading the digital renminbi app according to the prompts, use the mobile phone number of the Bank of Shanghai mobile banking app to complete the registration, and select an operating institution to open a wallet (currently supporting Bank of Communications). Changsha Bank has implemented services such as public wallet opening, query and account binding, as well as individual customer whitelist applications; Xi’an Bank mobile banking can realize digital RMB management, complete card binding, bank deposit, wallet refill, transfer, and query transaction details And many other functions. In addition, Hainan Bank stated that as a circulation institution, Hainan Bank relies on the digital renminbi wallet of the operating institution to provide customers with financial services such as fund circulation, payment and settlement.

It is worth noting that the number of banks that actually prepare digital renminbi business is far more than that. A reporter from the 21st Century Business Herald learned from the relevant person in charge of ICBC that as of the end of July, ICBC had signed digital RMB strategic cooperation agreements with more than 50 commercial banks in pilot areas. The partners include national clearing organizations such as Rural Credit Bank and City Bank Qing, as well as various types of banks such as national joint-stock banks, city commercial banks, and rural commercial banks. Among them, the scene of industrial cooperation between ICBC and Changsha Bank, Suzhou Rural Commercial Bank and other industries has been implemented.

Regarding specific scenarios and businesses. The relevant person in charge of ICBC introduced that corporate customers can open public wallets through partner banks’ counters, online banking and other channels; merchants can use partner banks to carry out digital RMB acquiring services through POS, scan code boxes and other devices Collect digital RMB paid by consumer customers. In addition, ICBC and partner banks have also implemented digital renminbi one-click payroll, red envelope distribution, automatic exchange, group reconciliation and other functions, and have carried out pilot verifications in application scenarios such as internal canteens, life payment, and fund collection. At the same time, ICBC and partner banks are actively developing application scenarios for digital renminbi in digital government affairs, supply chain finance, and group fund management.

From the recruitment information, we can also see that commercial banks are preparing for digital renminbi business. For example, the Internet Finance Department of Minsheng Bank released a digital RMB management position, responsible for the management and resource coordination of digital currency-related content. Wang Pengbo, chief analyst of Broadcom Consulting, said, “Digital RMB is one of the key points of the bank’s business development. As a supplement to cash, the bank is the executor of the two-tier operating system prescribed by the central bank. Therefore, in the future, banks will need long-term The operation and maintenance of the renminbi requires long-term talents.”

Inter-bank agency model access to realize the widespread availability of digital renminbi

In the centralized management and two-tier operation of the digital RMB operating system, the central bank is in a central position, responsible for issuing digital RMB to commercial banks as designated operating institutions and conducting full life cycle management, and designated operating institutions and related commercial institutions are responsible for the public Provide digital renminbi exchange and circulation services; the six state-owned banks are designated operating institutions and participate in the development and operation of digital renminbi. That being the case, how should non-operating commercial banks join the digital renminbi system? Can I join it?

The answer is yes. The “White Paper on China’s Digital RMB R&D Progress” issued by the Central Bank pointed out that in order to ensure that the digital RMB is widely available, it is necessary to give full play to the active role of other commercial banks and non-bank payment institutions, and to clarify the relationship between responsibilities, rights, and designated operations. The institutions work together to provide digital renminbi circulation services, including payment product design innovation, system development, scenario expansion, market promotion, business processing, and operation and maintenance services to realize the safe and efficient operation of the digital renminbi system.

So, in what way do non-designated operating agencies participate? From the current public disclosure situation, it is not difficult to find that commercial banks can rely on cooperation with operating institutions to provide customers with digital RMB-related services. For example, the Bank of Xi’an directly stated that it is accessing the digital renminbi through the inter-bank agency model; the same is true for the Bank of Hainan, and it also points out that it is a cooperation with the Bank of Communications; the Bank of Shanghai also develops through cooperation with the Bank of Communications.

Regarding the specific cooperation model, the relevant person in charge of ICBC said in an interview with a reporter from 21st Century Business Herald that ICBC has established a standardized system for digital RMB application service output, which can provide commercial bank customers with digital RMB wallet opening, bank account binding, and payment. Basic functions such as clearing, management query, and receipt reconciliation. On this basis, ICBC can create more personalized services according to the needs of commercial banks, such as embedding the wallet function into the commercial bank’s own financial product system, and providing convenient digital RMB exchange with bank deposits for commercial banks.

He further pointed out that from the perspective of commercial banks, by connecting with ICBC, commercial banks can provide digital renminbi wallet services for their personal and corporate customers and digital renminbi acquiring services for their merchants, which can be used in all of their financial services and applications. In the scenario, the digital renminbi is integrated according to the needs of its own business development. At the same time, ICBC will adopt effective risk isolation and data protection mechanisms to protect the customer information and privacy of commercial banks under the digital RMB cooperation model. From the perspective of users, individuals and corporate customers can still enjoy digital RMB application services through the financial products of existing commercial banks, without changing the commercial bank that provides services. The threshold for customers to use digital renminbi is lower and more convenient.

It is worth thinking about the fact that in this mode, operating institutions use cooperative commercial banks to obtain users, but does it make sense for non-designated operating institutions? According to Hao Yi, a postdoctoral fellow at the School of Finance of Renmin University of China, the involvement of non-designated operating institutions in digital renminbi business has three positive meanings.

First, better provide residents with digital renminbi exchange services. The employee payroll accounts of some companies are opened in non-operating institutions. The participation of non-operating institutions can save consumers from opening more bank accounts and make it easier for everyone to use digital renminbi.

Second, better mobilize market forces and build richer digital currency application scenarios. The number of institutions participating in the digital renminbi has increased, especially the participation of city commercial banks and rural commercial banks, which can build digital renminbi application scenarios that are more suitable for local promotion according to the local urban (rural) customer situation.

Third, it reflects the fairness and justice in the promotion of digital renminbi, giving more financial institutions the opportunity to participate in the digital renminbi.

The relevant person in charge of ICBC stated that my country’s digital renminbi system aims to create a financial infrastructure that is stable, reliable, fast and efficient, continuous innovation, and open to competition under the conditions of the digital economy. For commercial banks that are not designated operating institutions, building a digital renminbi payment ecosystem with operating institutions will help maintain the stability of the existing financial market, give full play to the financial service capabilities of my country’s commercial banks, and better realize the wide availability of digital renminbi . In addition, the cooperation between the two parties is conducive to reusing existing financial infrastructure, reducing repetitive system development, and enabling rapid system promotion.


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