The digital renminbi industry chain debuted at the Service Trade Fair

Summary

Event: September 2-7, the China International Trade in Services Fair (“Trade Fair”) was held in Beijing. Among them, at the financial service special exhibition, the People’s Bank of China Digital Currency Research Institute and the Fengtai District Government jointly unveiled the digital renminbi industry chain. ,include:

1) “Strategic Center”: Digital Currency Research Institute of the People’s Bank of China;

2) Operating organization (equivalent to “two-tier” and “currency-issuing bank”): Gongnong Zhongjian Postal Savings;

3) Security chip companies: Ziguang Guowei and Huada Electronics;

4) Card dealer: Hengbao shares;

5) Internet companies (equivalent to “2.5 layers” and “access institutions of note-issuing banks”): WeBank, JD, Meituan, etc.

Six major industries : coupons, blind boxes, seals and other trendy methods, allowing the public to experience digital RMB consumption at a low threshold. The six major state-owned banks actively used popular marketing methods to showcase the poverty alleviation, daily consumption and Winter Olympics scenes through self-service coffee machines, self-service capsule machines and other popular ways to increase public awareness of digital renminbi, and Increase the bank’s digital RMB account opening rate. Bank of China, China Construction Bank, and Postal Savings Bank of China also displayed foreign currency exchange digital renminbi machines. Among them, Postal Savings Bank has set up independent foreign currency and digital renminbi hardware wallet exchange machines to automatically identify more than 180 denominations and versions of foreign currencies; China Construction Bank has set up self-service foreign currency exchange machines to support overseas mobile phone numbers, passports and other methods to open digital renminbi hardware wallets , And functions such as recharge and query.

Security chips and card vendors: “Dual offline payment” hardware wallets finally landed. With regard to the digital renminbi of this service trade fair, Ziguang Guowei, Huada Electronics and Hengbao Co., Ltd. displayed various hardware wallets such as fingerprint wallets, paper wallets, visual wallets, LED wallets, NFC wallets, and watches.

Internet companies: Give full play to the characteristics of technology and scenarios, and actively participate. Tencent : Through the use of AI technology to analyze the user’s smiling face and score it, the user will be issued coupons to purchase the blind box of the Chinese zodiac doll, and the minimum payment is only 1 yuan in digital renminbi. JD Technology: There is an offline supermarket experience area where consumers can experience the complete process of shopping with digital renminbi, and they can also receive digital renminbi discount coupons on the online shopping platform. Meituan: Demonstrated a new digital renminbi application developed in cooperation with China Unicom and Bank of China-the NFC payment function based on a smart SIM card digital renminbi hardware wallet.

How to treat the clearing and dual offline payment of digital renminbi? As a currency string, digital renminbi does not need to be liquidated? We have noticed that whether it is media reports or at the Service Trade Fair, it is difficult to see the role of clearing institutions in the “traditional” electronic payment industry chain such as UnionPay and Net Union regarding the digital renminbi. Does the digital renminbi need to be cleared? We believe that one possible explanation is that as a currency string, digital renminbi may carry a specific account bank number. When the payer and the beneficiary’s digital renminbi account bank are different, the payment process is that the paying bank destroys the currency string and receives the payment. As a note-issuing bank, the bank will issue new currency strings within the quota given to the bank by the People’s Bank of China. This process is still liquidation, but it involves fewer institutions than the original, only the six major banks. Perhaps it can be understood that the liquidation rights of the digital renminbi have been transferred from the original UnionPay and Wanglian to the six major banks and the Digital Currency Research Institute of the People’s Bank of China. Of course, the digital renminbi has not yet been implemented on a large scale, so there may be no need for the intervention of institutions such as UnionPay and Wanglian with more experience in clearing business for the time being.

How to understand “dual offline payment”? Dual offline payment means that both the payer and the payee are offline and the payment is completed. For example, in the bus swiping scenario, the payer swipes the bus card, and this process can be carried out offline. If the payee, the bus company, wants to spend the money, the bus company needs to connect the money in the credit card machine to the Internet. Withdraw the money, that is, if the receiving end still needs to be connected to the Internet, it is not dual offline. The dual offline risk control method of the digital renminbi is “a limit + a limited number of times”. The innovation is that the People’s Bank of China has promoted relevant protocol standards, and the prospects are promising.

Investment recommendations: 1) Security chip companies: Ziguang Guowei, Huada Electronics; 2) Card dealers: Hengbao, Chutianlong, Tianyu Information; 3) Merchants: Lakala, etc.; 4) Financial IT manufacturers, etc.

Risk warning: The progress of the implementation of the digital renminbi is not as fast as expected.

The digital renminbi industry chain debuted at the Service Trade Fair

The digital renminbi industry chain is emerging. On September 2-7, the China International Service Trade Fair (“Service Trade Fair”) was held in Beijing. In the financial service special exhibition, the People’s Bank of China Digital Currency Research Institute and the Fengtai District Government jointly launched the digital RMB industry chain, including : 1) “Strategic Center”: Digital Currency Research Institute of the People’s Bank of China; 2) Operating organization (equivalent to “2 tier” and “Banknote Issuing Bank”): Gongnong Zhongjian Transportation Postal Savings; 3) Security chip company: Ziguang Guowei and China Big Electronics; 4) Card dealer: Hengbao; 5) Internet company (equivalent to “2.5 layer” and “Access institution of the issuing bank”): WeBank, JD, Meituan, etc.

The digital renminbi industry chain debuted at the Service Trade Fair

The People’s Bank of China and the six major banks: coupons, blind boxes, hardware wallets, helping the Winter Olympics and poverty alleviation

Trendy methods such as coupons, blind boxes, and seals allow the public to experience digital renminbi consumption at a low threshold. The six major state-owned banks actively used popular marketing methods to showcase the poverty alleviation, daily consumption and Winter Olympics scenes through self-service coffee machines, self-service gas capsule machines and other popular ways to increase public awareness of digital renminbi, and Increase the bank’s digital RMB account opening rate .

  • The People’s Bank of China Digital Currency Research Institute and Fengtai District Government: jointly created a digital renminbi avenue to provide personal financial services in this area to facilitate the audience to handle digital renminbi wallets and understand the Winter Olympics credit card products, etc., and create books, cultural and creative , Communications, and winter Olympic licensed products. 
  • Bank of China: Demonstrated the exploration and application of digital renminbi in scenarios such as transportation, smart parks, silver-haired pensions, and bank-bank cooperation, including setting up self-service coffee machines, self-service gastronomy machines, and so on.
  • Postal Savings Bank: launched one yuan RMB to experience digital activities, including the number of coins stamps blind box, phonograph postcard printer and the painted screen interactive live action , more than three complete experience obtained seal one.
  • Industrial and Commercial Bank of China: Provided digital RMB payment for the gate ride experience test, and carried out the exchange of 8 yuan digital RMB red envelopes for low-carbon emission reduction cycling activities.
  • Agricultural Bank of China: Promote digital RMB related policies, show the application scenarios of digital RMB in three scenarios of “helping farmers, benefiting farmers, and prospering agriculture”, and organize the on-site opening of the Agricultural Bank’s digital RMB wallet, and you can get a full of vitality “ Activities.
  • Bank of Communications: The exhibition area has orange juice machines, coffee machines, cultural and creative products , as well as green natural agricultural products from Tianzhu, Gansu, the designated assistance county of the Bank of Communications . Visitors can experience the convenience of digital renminbi consumption, bank-medical interaction and other services.
  • China Construction Bank and Agricultural Bank: Self-service coffee machines and self-service vending machines have been installed .

Launched a digital renminbi hardware wallet to fill the “digital gap”. Hardware wallets, separated from the payment medium used by mobile phones, appear in people’s vision in various forms at the exhibition. In addition to their beauty, they provide the convenience of using digital renminbi for people who have difficulty in using smart terminals. Including the Bank of China’s ski gloves, Winter Olympics badges, smart watches, etc.; Postal Savings Bank ’s “passive visual card hardware wallet” with the health treasure query function ; ICBC’s voice broadcast hardware wallet for the disabled , suitable for the elderly Hardware wallets of crutch , SIM card hardware wallets, etc .; Keychain hardware wallets of Bank of Communications, etc.

Leverage the Winter Olympics to open up the space of foreign currency exchange for digital renminbi. In order to meet the needs of foreigners to use digital renminbi in China, some state-owned banks have opened foreign currency exchange services for digital renminbi. Bank of China, China Construction Bank, and Postal Savings Bank of China have all displayed foreign currency exchange digital renminbi machines. Among them, Postal Savings Bank has set up independent foreign currency and digital renminbi hardware wallet exchange machines to automatically recognize more than 180 denominations and versions of foreign currencies; China Construction Bank has set up self-service foreign currency exchange machines, supporting overseas mobile phone numbers, passports and other methods to open digital renminbi hardware wallets. And functions such as recharge and query.

Security chip companies and card vendors: support national secrets, independent and controllable

The “dual offline payment” hardware wallet finally landed. Regarding the digital renminbi of this service trade fair, two chip manufacturers and one card manufacturer participated in the exhibition. They demonstrated various forms of hardware wallets and demonstrated their pursuit of national secrets and self-controllability. Specifically, various manufacturers displayed various hardware wallets such as fingerprint wallets, paper wallets, visual wallets, LED wallets, NFC wallets, and watches.

  • Ziguang Guowei: A comprehensive display of the security chip ecological industry chain, including the first appearance of the Ziguang Tongxin Digital RMB solution and its latest technological achievements. Currently, digital renminbi, as an innovative technology for digitizing banknotes, has the outstanding characteristics of two-way offline payment. In order to fully meet the needs of users for two-way offline payment in weak or no-network situations, Ziguang Guowei stated that in terms of transaction speed, Ziguang’s Tongxin Digital RMB solution has deeply optimized algorithms to speed up offline transaction performance by 30%; in terms of security protection In terms of reliability, it has passed the international CC EAL6+ security certification to ensure the security of the entire process of sensitive information transmission and transactions; in terms of reliability, it has greatly improved user space and frequency of use, and the number of erasing and writing times is up to 500,000, and the data retention time is up to 25 Years, to provide long-term and lasting products and services to the maximum. Based on this plan, Unisplendour Co., Ltd. and its partners have jointly launched a variety of digital RMB-related products and solutions, such as multi-form hardware wallets and payment terminal devices .
  • Huada Electronics: First released a variety of different forms of digital renminbi hardware wallet products and solutions based on security chips, including digital renminbi card wallets, digital renminbi wallet module products, digital renminbi wearable wallet products, digital renminbi shaped wallets, The digital renminbi wallet terminal, supporting digital renminbi wallet ESAM, digital renminbi wallet security chip, etc. can meet the needs of a wide range of smart people’s livelihood and small high-frequency payment scenarios such as gas station payment, charging pile charging, transportation travel, and Internet of vehicles payment. In terms of security, BGI’s security chip products use domestically-made CPU cores to meet the demand for controllability. Its security has reached the international and domestic leading level. It has obtained the highest international security level SOGIS CC EAL 6+ certification, and has obtained domestic commercial password II. Level, EAL4+ and other national authority certifications ensure the functionality and security of the digital RMB wallet.
  • Hengbao shares: Through the four application scenarios of “digital travel, digital tourism, digital consumption, and digital park”, it demonstrates the diversified application scenarios of digital RMB products. In terms of digital RMB collection product solutions, Hengbao shares can provide dual offline collection and payment wallets with long battery life, smart visual wallets without charging, etc. In terms of product types, Hengbao has developed a series of passive visual wallets, convenient sticker wallets, wearable wallets and other products to meet the differentiated needs of the public; in terms of service capabilities and scene application technology, Hengbao has developed The Heng e-Tong platform provides technical access services for 2.5-tier banks or scene-side access to 2-tier banks. At the same time, it can also be connected to smart terminal equipment to meet the needs of a wide range of application scenarios, such as airports, hotels, rail transit, theme exhibitions, etc. Requirements for convenient exchange of digital renminbi, multi-scenario interoperability and intelligent business management.

The digital renminbi industry chain debuted at the Service Trade Fair

Internet companies: give full play to the characteristics of technology and scenarios, and actively participate

Internet companies showed scenes such as artificial intelligence technology and shopping malls related to their own endowments.

  • Tencent: Launched the “AI Laughing Gift Package” campaign, which uses AI technology to analyze and score users’ smiling faces, and distribute coupons for users to buy blind boxes with twelve zodiac dolls . The minimum payment is 1 yuan in digital RMB.
  • JD Technology: Released the memorabilia of participating in the development of digital renminbi, and has an offline supermarket experience area , where consumers can experience the complete process of shopping with digital renminbi, and can also receive digital renminbi discount coupons on the online shopping platform .
  • Meituan: Demonstrated the new digital RMB application developed in cooperation with China Unicom and Bank of China-the NFC payment function based on the smart SIM card digital RMB hardware wallet , without the need to connect to the Internet, open the mobile app, or bind a bank card or mobile phone. “Touch” can switch Meituan bicycles and complete the payment simultaneously.

Thinking: How to treat the settlement and dual offline payment of digital renminbi?

As a currency string, digital renminbi does not need to be liquidated? We have noticed that whether it is media reports or at the Service Trade Fair, it is difficult to see the role of clearing institutions in the “traditional” electronic payment industry chain such as UnionPay and Net Union regarding the digital renminbi. Does the digital renminbi need to be cleared? Based on industry research, we believe that one possible explanation is that digital renminbi, as a currency string, may carry a specific account bank number. When the payer and the beneficiary’s digital renminbi account bank are different, the payment process is that the paying bank destroys the currency. As a note-issuing bank, the beneficiary bank will issue new currency strings within the quota given to the bank by the People’s Bank of China. This process is still liquidation, but it involves fewer institutions than the original, only the six major banks. Perhaps it can be understood that the liquidation rights of the digital renminbi have been transferred from the original UnionPay and Wanglian to the six major banks and the Digital Currency Research Institute of the People’s Bank of China. Of course, the digital renminbi has not yet been implemented on a large scale, so there may be no need for the intervention of institutions such as UnionPay and Net Union with more experience in clearing business for the time being. We will keep observing the subsequent developments.

How to understand “dual offline payment”? Based on industry research, we learned that dual offline payment means that both the payer and the payee are offline and the payment is completed. For example, in the bus swiping scenario, the payer swipes the bus card, and this process can be carried out offline. If the payee, the bus company, wants to spend the money, the bus company needs to connect the money in the credit card machine to the Internet. Withdraw the money, that is, if the receiving end still needs to be connected to the Internet, it is not dual offline. The dual offline risk control method of the digital renminbi is “a limit + a limited number of times”. The innovation is that the People’s Bank of China has promoted relevant protocol standards, and the prospects are promising.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-digital-renminbi-industry-chain-debuted-at-the-service-trade-fair/
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