Recently, Chongqing issued The 14th Five-Year Plan for Financial Reform and Development of Chongqing (2021-2025), which pointed out that the city would strive to carry out the pilot of legal digital currency and explore the international application scenario of E-CNY.
Since June last year, E-CNY has gradually become a high-frequency vocabulary in the 14th five-year plan of local finance. Specifically, it includes Jiangsu, Zhejiang, Fujian, Shanghai, Shenzhen, Guangzhou, Tianjin, Xi'an, Hainan and Chongqing.
It is mentioned in The Financial Development Plan of Jiangsu Province in the 14th Five-year Plan Period that Jiangsu will support Suzhou to give full play to the pilot first mover advantage of E-CNY and develop and expand the digital currency industry. In the plan, it is separately mentioned to explore the cross regional interconnection of E-CNY in the fields of transportation, schools, medical insurance, social security and others.
According to The 14th Five-Year Plan for the High-quality Development of Shenzhen's Financial Industry, Shenzhen will carry out innovative applications such as digital currency research and mobile payment, accelerate the breakthrough of key technologies such as mobile payment and terminal security related to digital currency wallet, strive to build a legal digital currency innovation pilot zone, and promote international cooperation and cross-border use of E-CNY. The 14th Five-year Plan for the Development of Hainan's Financial Industry proposes that Hainan will carry out a E-CNY pilot across the island, explore the application scenarios of E-CNY with the characteristics of Hainan free trade port, and create a E-CNY ecosystem.
Wang Pengbo, a senior analyst in the financial industry of Broadcom consulting, pointed out that E-CNY is an important basic financial innovation, which may trigger a series of industrial chain reactions in the future, so it is very important to give priority to the position and grasp the opportunity. In addition, E-CNY is naturally applicable to inclusive financial services. It will play an important role in the practical implementation of livelihood projects such as serving villages and Inclusive finance.
Yu Baicheng, president of 01 research institute, said that the pilot should be carried out as soon as possible for cities that have not entered the pilot, which can promote relevant financial institutions and enterprises in the region to participate in the ecology of E-CNY and obtain a favorable position in the development of digital finance.
The development of E-CNY standard is also expected to speed up. In February 2022, the four departments issued The 14th Five-year Plan for Financial Standardization, which made it clear that we will steadily promote the development of legal digital currency standard, and the standard requirements of legal digital currency were elaborated in one chapter.
According to the research report released by Anxin securities, the release of the plan will enable the E-CNY to meet the big policy, and the standard development is expected to speed up.
According to Su Xiaorui, senior analyst of Analysys, the development of the standard can strengthen the security of legal digital currency, and promote the unification of legal digital currency in all links of issuance, circulation and return, so as to facilitate subsequent adjustment and management on demand. From the above aspects, the development and implementation of E-CNY standard will be accelerated.
Wang Pengbo believes that it is worth paying attention to how the commercialization of E-CNY can be effectively combined with the existing payment industry chain, so as to promote the development of innovative services and get the corresponding companies to make profits.
In fact, with the hot launch of E-CNY (pilot version) App, the steady expansion of E-CNY business pilot and a number of application scenarios, especially with the gradual access of high-frequency livelihood application scenarios, E-CNY is accelerating its integration into public life. In the past Chinese Spring Festival, E-CNY has become a new consumption hotspot. According to the data released by Meituan, as of February 7th, the average number of daily E-CNY transactions on Meituan platform increased by 56.40% month on month compared with the week before the festival, and the average daily E-CNY transaction amount on Meituan platform increased by 68.54% month on month compared with the week before the festival.
Su Xiaorui said that looking forward to the future, it is expected that more users will participate while the pilot area continues to expand. In terms of scenarios, it is expected to gradually extend to large-scale payment, cross-border payment and other fields.
"E-CNY will also further expand the coverage of pilot test application scenarios to achieve full coverage of application scenarios in specific pilot areas. In addition, the formulation of laws, regulations and standards related to E-CNY is also the focus in the steady pilot process of E-CNY." Yu Baicheng said.
