Digital RMB boosts the recovery of consumption, and Sifang Jingchuang takes the lead in deepening the layout

This Spring Festival, many local governments, commercial banks and Internet platforms cooperated to issue digital RMB red envelopes and consumption vouchers to boost consumer demand. Digital RMB consumption vouchers can be used to eat hot pot, buy flowers and watch movies. Payment in digital RMB has also become a "new fashion" for many citizens. According to statistics, the amount of digital RMB activities in the pilot areas during the Spring Festival exceeded 180 million yuan. So far, the People's Bank of China has carried out digital RMB pilot projects in some regions of 17 provinces, and each pilot area has carried out nearly 30 digital RMB consumption red packets activities around the theme of "promoting consumption" and "low-carbon travel". The People's Bank of China said that it would continue to carry out the innovative application of digital RMB in the future and realize the interconnection between the digital RMB system and traditional electronic payment tools.
In the face of the huge development potential of digital RMB, many listed companies represented by Sifang Jingchuang have launched the digital RMB track in the A-share market, and can this track, which is mainly supported by the policy, be a new performance growth point for listed companies?
Grasp strategic opportunities, and the growth of digital RMB can be expected
Since the test of digital RMB was launched in Shenzhen, Suzhou, Xiong'an and Chengdu in 2019, the digital RMB has been continuously upgraded iteratively in the pilot cities, pilot application scenarios and APP functions in the past three years. Especially since 2021, the promotion of digital RMB has been accelerating, and many banks have promoted digital RMB wallets in an all-round way. The pilot project of digital RMB has gradually expanded to 26 regions in 17 provinces (cities, autonomous regions) by the end of 2022.
In 2022, in the context of third-party payment interconnection, the use of digital RMB will be further expanded, and many functions will be significantly upgraded. In December last year, Alipay, as the first payment platform, joined the digital RMB acceptance network to support Taobao to use digital RMB for payment. Previously, digital RMB has been connected to sub wallets such as Elema and Hema. At the same time, the digital RMB APP "hard wallet" of some Android mobile phones is also online without network and power. After being opened, the mobile phone can still use the "touch" payment terminal to complete payment when it is turned off. At present, the amount of confidential payment is less than 500 yuan, and the maximum number of available times is 10. It is noteworthy that in December 2022, the data of digital RMB was included in the "currency in circulation (M0)" statistics by the Central Bank for the first time. By the end of December 2022, the balance of digital RMB in circulation was 13.61 billion yuan. This means that the nature of the monetary component of the digital RMB, like the physical RMB, has been further emphasized.
In the face of the rapid development of digital RMB in recent years, Sifang Jingchuang has made full use of its own technical reserves related to digital RMB, actively participated in the pilot of digital RMB, and actively assisted financial institutions to participate in the application and promotion of digital RMB in many places. At the same time, in combination with the information disclosed by the company, the company has participated in the application of digital RMB in Shenzhen, and the relevant businesses are mainly focused on the G2B scenario. For example, the company actively assists customers in promoting the application of digital RMB payment, digital RMB red envelope, digital RMB consumption voucher and other modes in sports and other scenarios. In addition, the company has also participated in the development of business applications such as digital RMB storage and payment, and digital RMB corporate wallets at gas stations.
Digital currency cross-border payment has broad prospects
Digital RMB has a strong national strategic significance. It can achieve precise regulation and control at home, and is one of the important means of internationalization of RMB. After the large release of water in the first half of 2020, the total assets of the Federal Reserve reached $8.49 trillion by September 25, 2021. In the context of the global dollar flood, countries have greatly increased the importance of monetary sovereignty. Digital RMB helps to maintain the stability of the value of the RMB and is conducive to countries accepting the RMB as a means of international payment, settlement, investment and reserve currency. On February 24, 2021, the Digital Research Institute of the Central Bank announced that it would jointly launch the research project of the multilateral central bank digital currency bridge (m-CB-DCBridge) with the Hong Kong Monetary Authority, the Central Bank of Thailand and the Central Bank of the United Arab Emirates; On March 27, China and Iran signed a "25-year comprehensive cooperation plan". The cooperation agreement involves the use of RMB settlement when Iran supplies oil to China, including the new digital RMB launched by China.
From a global perspective, at present, central banks of all countries are actively promoting the process of digital currency issuance because of the competitive pressure from Bitcoin and Libra; From the perspective of countries, if a country's digital currency is successfully launched, or the entire international monetary system can be reconstructed, it will have a significant impact on the global financial system and macroeconomic. Under the competitive situation of big countries, the advancement of digital RMB is expected to continue to accelerate.
Faced with this huge blue ocean of the global market, Sifang Jingchuang also took the lead in "digital RMB cross-border payment" and made an early layout. Sifang Jingchuang has the technical reserves for cross-border transaction of digital RMB. The company has provided technical consultation and project implementation for the "multilateral central bank digital currency bridge" project. As a financial technology company participating in the project, the company has actively explored the application of central bank digital currency in cross-border payment and has technical accumulation and successful cases. At the same time, the company has rich experience in application research, development and implementation of cross-border finance and other scenarios, and is able to cooperate with customers to explore and implement more application scenarios.
From the perspective of the company's business distribution, Sifang Jingchuang has prominent advantages in the field of digital RMB cross-border payment. Adhering to the strategy of coordinated development of domestic and foreign businesses, the company has global service capabilities, which can not only provide comprehensive financial IT demand support for domestic large, medium and small financial institutions, but also provide financial technology support for financial institutions in Hong Kong, Macao, Southeast Asia and other countries and regions in the world, and has the ability to provide large-scale offshore services for the development of financial institutions in different countries and regions around the world.
Taking the Hong Kong market, the third largest financial center in the world, as an example, the company has gained a dominant position through years of deep cultivation, and has established long-term business relations with well-known financial institutions in Hong Kong, such as BOC Hong Kong, Standard Chartered Bank, Bank of East Asia, Overseas Chinese Wing Heng Bank, HKICL (Hong Kong Interbank Clearing Co., Ltd.), to provide comprehensive financial technology solution services.
At the same time, with the support of the Hong Kong Monetary Authority, Sifang Jingchuang has also set up a financial technology innovation center, FINNOSpace, in Hong Kong, as the core of the company's strategy, and continues to explore the applications of distributed, micro-service, blockchain, digital currency, cross-border payment, artificial intelligence, green finance, Web 3.0, etc. in the field of financial technology, to inject a steady stream of power into the company's development and help the development of the industry.
Recently, more and more plans and objectives related to digital RMB have been released. For example, Jiangsu Province has made it clear that the pilot project of digital RMB will be carried out steadily and orderly in the whole province; Suzhou has put forward a target of 2 trillion yuan of digital RMB trading amount by 2023; Jinan will strive to achieve full coverage of major payment scenarios by the end of 2023. The continuous policy will undoubtedly bring benefits to enterprises in the whole industrial chain of digital RMB. The midstream banking IT industry in the industry chain, including Sifang Jingchuang, continues to release the demand for software construction and has a large profit margin. The software market size will reach 21.59 billion yuan in 2020, up 21.4% year on year. The IT solution market size of Bank of China will probably reach 118.6 billion yuan in 2025. For listed companies such as Sifang Jingchuang, which entered the market early, new market valuation will be given in the future.