The first anniversary of the winter Olympics trial digital RMB!Can the digital RMB float red against the market last?

2022-08-11 0 By

Beijing digital RMB Winter Olympics full scene pilot to celebrate the anniversary.As an important part of the infrastructure of the Beijing Winter Olympic Games, the recent implementation of relevant pilot programs and policies of digital RMB will usher in important development opportunities.# # Beijing Olympics at present, the People’s Bank of China has been in shenzhen, suzhou, male, chengdu, Shanghai, hainan, changsha, xi ‘an, Qingdao, dalian and other places and pilot implementation scenario number RMB 2022 Beijing Olympics, basic covers the Yangtze river delta, the pearl river delta, beijing-tianjin-hebei, central, west, northeast, northwest and other regions.As of December 31, 2021, the number of digital RMB pilot scenarios has exceeded 8,085,100, with a total of 261 million individual wallets opened and 87.565 billion yuan of transactions. The pilot has effectively verified the technical design, system stability, product ease of use and applicability of scenarios of digital RMB business.It has enhanced the public’s understanding of the design concept of digital RMB.Since the trial of digital RMB was launched in Shenzhen and Suzhou at the end of 2019, the digital RMB project has gone through two stages: government promotion and market drive.From the end of 2019 to the beginning of 2021, digital RMB will be promoted mainly by the People’s Bank of the pilot area and local government, and the promotion method will be mainly by local government to issue digital RMB red envelope subsidies.After the second quarter of 2021, the market enthusiasm continues To rise, and the operating institutions shoulder the promotion responsibility and actively explore multiple scenarios such as online/offline, To B/To C and so on.According to the data disclosed by the People’s Bank of China, by the end of October 2021, 150 million digital RMB wallets (including 140 million personal wallets and 10 million enterprise wallets) had been opened, and 150 million transactions had been made, with a total amount of 62 billion yuan.The number of digital wallet openings has exploded since the end of the second quarter, up 515%.Personal wallets grew by 571%.The number of transactions and the amount of transactions also significantly increased.On January 4, the digital RMB APP was launched in the APP Store and android APP stores. The number of digital RMB APP downloads in the Huawei APP Store soared from less than 10,000 to more than 5.8 million, showing the enthusiasm of the public.Despite the rapid development of digital RMB, there is still a big gap between digital RMB and traditional payment methods.Data from the Central bank showed that in the third quarter of 2021, banks processed 71 billion electronic payments (including online payment, telephone payment, mobile payment, ATM/POS, etc.) with a total value of 737 trillion yuan.Among them, mobile payments and online payments totaled 65.9 billion with a total value of 714 trillion yuan, up 12.2% (20.1% previous).By contrast, the number of transactions and the amount of transactions are not the same order of magnitude.However, there is reason to believe that with the improvement of digital RMB payment system and the formation of users’ usage habits, its development prospects will be very broad.Although the above scenarios gradually enrich, the target is mainly domestic users, and the process of promotion is to some extent the replacement of third-party payment tools.Different from these scenarios, the users of digital RMB in the Scenario of Winter Olympics are mainly overseas people, so it is necessary to improve the digital RMB payment function and optimize user experience in terms of privacy protection, convenient payment, currency exchange and scene customization based on the characteristics of overseas consumers.Iii. Multiple application scenarios are perfect, and digital RMB can be widely used as currency exchange: exchange equivalent digital RMB with foreign currency cash.Bank of China has already conducted preliminary tests on digital YUAN conversion applications at the CiIE held in November.In the conference hall, foreign people who need to exchange currency can exchange foreign currency cash into equivalent digital RMB according to the real-time exchange rate published by bank of China on the foreign currency exchange machine (digital RMB version) with their passports without registering or binding bank accounts.This winter Olympics will continue this exchange method, easy for foreigners to exchange.Iv. Currently, cross-border payment has numerous drawbacks, creating conditions for the development of digital RMB. The current cross-border payment system is a global network established with SWIFT and CHIPS as the core, which has numerous drawbacks.Among them, SWIFT is the global leader and standard setter of cross-border financial information transmission service. It has built a financial communication network covering more than 200 countries and regions with 11,000 access institutions.CHIPS is the largest private sector US dollar fund transmission system in the world. Established and operated by the Association of Clearing Houses in New York, CHIPS is the central nerve for the settlement and settlement of cross-border US dollar transactions in the private sector.After years of monopoly operation, the existing cross-border payment system has many drawbacks in efficiency, cost and security.(1) Low efficiency. Since there is almost no competition, existing service providers of cross-border payment system are hardly motivated to continuously improve technology and upgrade services, and the long-standing problem of time-consuming cross-border payment has been widely criticized by global users.Take overseas remittance as an example. The Philippines has 10 million workers abroad, one-third of whom are engaged in service jobs (i.e., domestic servants). The cross-border remittances sent back to The country each year amount to 33 billion US dollars, contributing 10% of the country’s GDP.However, Filipino maids in Hong Kong generally report that it takes about five days on average to complete the remittance through the existing cross-border payment network, which shows the low efficiency.(2) High prices. Another pain point caused by monopoly is the high cost of cross-border payment procedures.According to the World Bank report, the annual amount of overseas Chinese remittances is 500 to 600 billion US dollars, and the cost of processing small amounts of overseas Chinese remittances under the existing cross-border payment system can reach up to 12%.(3) Poor security. Since the existing cross-border payment system is highly centralized and its core (SWIFT and CHIPS) are both American companies, the United States can use cross-border payment as a big stick for financial sanctions to restrict the cross-border business activities of enterprises in the sanctioned countries and threaten their financial sovereignty.Attach importance to and support the application of digital RMB in cross-border scenarios.In December last year, The State Council issued the Overall Plan for The Pilot Reform of Market-oriented Allocation of Factors of Factors, which proposed to “increase the supply of effective financial services and support the pilot application of digital RMB in retail transactions, household payment, government services and other scenarios”.The People’s Bank of China further clarified in the White Paper on the RESEARCH and Development of China’s Digital RMB that one of the goals and visions of the digital RMB is to actively respond to the international community’s initiatives and explore the improvement of cross-border payments;The digital yuan already has the technical conditions for cross-border use, but is currently mainly used for domestic retail payments.It can be seen that the government supports the application of digital RMB in cross-border scenarios, and digital RMB also has technical functions for cross-border use.China Amc’s Internet Finance ETF (516100) closely tracks the China Securities Fintech Theme Index (930986), and currently ranks first in the market for similar products that track the index.Among its 45 constituent stocks, the cumulative weight of digital RMB concept related targets reaches 44.51%, which is one of the indexes with the highest amount of “coins” (source: Wind, as of 2021.12.15).Therefore, investing in Internet finance ETF (516100) is a good choice to buy high-quality fintech objects in a package and participate in digital currency theme investment.China Securities Fintech Index 2017 — 2021 Performance Summary: -19.78%, -20.90%, 48.18%, 10.46%, 7.15%, (Data source:Wind 2017.01.01-2021.12.31) Risk warning:Internet financial ETF risk grade R3, specific risk ratings to fund managers and sales organizations provide ratings shall prevail, this product belongs to the index fund, the underlying index and the stock market average return deviation and the underlying index fluctuation, portfolio return and the underlying index return deviation are the main risk,The linked fund has specific risks such as linked fund risk, tracking deviation risk, and the risk of performance difference from the target ETF, and the historical performance of the market or related products does not represent the future.There are risks in the market, so be cautious when entering the market.Want to know more exciting content, come to pay attention to China ETF