Observation | Support the research and application of digital currency, why is it Shenzhen?

According to CCTV news , on August 18th, the CPC Central Committee and the State Council issued opinions on supporting Shenzhen to build a pioneering demonstration zone for socialism with Chinese characteristics.

The opinion pointed out that it supports the development of innovative applications such as digital currency research and mobile payment in Shenzhen. Promote interoperability with Hong Kong and Macao financial markets and mutual recognition of financial (fund) products. In the promotion of the internationalization of the renminbi, we will try first and explore innovative cross-border financial supervision.

When the news came out, it quickly caused widespread discussion.

In contrast to the speech on August 10th, the Deputy Director of the Payment and Settlement Department of the People's Bank of China, Mu Changchun, at the China Finance 40-Yichun Forum , combined with the "advancement of the renminbi internationalization first pilot", we can infer that the above comments "Digital currency" is likely to refer to China's central bank digital currency DC/EP (DC, Digital Currency, ie, digital currency; EP, Electronic Payment, ie electronic payment).

The Babbitt reporter found that as a pioneer city of China's reform and opening up, since the establishment of the special economic zone, Shenzhen has assumed the mission of first exploring for reform and opening up, and with the wisdom of "crossing the river by feeling the stones" and "killing a bloody road". Courage is famous. This wisdom and courage are also reflected in the exploration of digital currency.

Policy aspect

In November 2016, the Financial Development Service Office of the Shenzhen Municipal People's Government issued the “13th Five-Year Plan for the Development of Shenzhen's Financial Industry” . The document pointed out that “support financial institutions to strengthen research and exploration of emerging technologies such as blockchain and digital currency.”

In May 2017, the Shenzhen Economic and Trade and Information Technology Commission issued the “Guidelines for the Application of the 2017 Major Science and Technology Industry Specialized 2017 Support Plan” . The document pointed out that “the focus is on supporting blockchain products, quantifying financial platforms and systems, Internet financial service platforms, financial risk management systems research and development and industrialization.”

In October 2017, the Shenzhen Municipal People's Government issued the “Shenzhen Measures to Support the Development of the Financial Industry” . The document pointed out that “the establishment of the Fintech Special Award will focus on outstanding projects in the areas of blockchain, digital currency, and financial big data, and the annual award limit will be less than 6 million yuan.”

In March 2018, the Shenzhen Economic and Trade and Information Technology Commission issued a document "Notice of the Municipal Economic and Trade Information Commission on Organizing the Implementation of the Second Batch of Supporting Programs for the Next Generation Information Technology Security Special Project of Shenzhen Strategic New Emerging Industries in 2018" . The document pointed out that around the big data, cloud computing, mobile Internet, Internet of Things, blockchain and other new application environments, the key core technologies will be promoted to achieve major breakthroughs and demonstration applications. The project can subsidize up to 2 million yuan.

In August 2019, the CPC Central Committee and the State Council issued opinions on supporting Shenzhen to build a pioneering demonstration zone for socialism with Chinese characteristics . The opinion pointed out that it supports the development of innovative applications such as digital currency research and mobile payment in Shenzhen.

Organizational aspect

In December 2016, Shenzhen established the nation's first Fintech digital currency alliance and research institute . This is also the financial technology alliance and research institute initiated after the central bank announced the establishment of the digital currency research institute, the first local city in China, from the national financial innovation and opening up, and the promotion of RMB internationalization. At that time, any financial officer in Shenzhen, Xiaojun said,

"Shenzhen will pay attention to the central bank's policy orientation, plan ahead of schedule, strive for pilot projects, strive for digital currency promotion pilot qualifications, and cooperate with the establishment of a digital currency operation supervision system."

In June 2018, “Shenzhen Financial Technology Co., Ltd.” , which was 100% controlled by the People’s Bank of China’s Digital Money Institute, was established in Shenzhen . People close to the project said that the company participated in the development of trade finance blockchain and other projects. Tianyanchao showed that the company was established on June 15 this year with a registered capital of 2 million yuan. The business scope includes: financial technology related technology development, technical consultation, technology transfer, technical services; financial technology related system construction and operation and maintenance.

Application

In April 2018, the project “Digital Money Prototype Application Research” initiated by the preparatory group of the People's Bank of China Financial Science and Technology Research Institute won the first prize of the Shenzhen Supporting Financial Development Special Award.

In September 2018, the “Bay Area Trade Finance Blockchain Platform” was officially put into trial operation in Shenzhen . The platform is dedicated to building an open financial and trade ecosystem based on the Guangdong, Hong Kong and Macau Bay Area, facing the country and radiating the world. The Bay Area Trade Finance Blockchain Platform is jointly promoted, coordinated and organized by the People's Bank of China Digital Currency Research Institute and the People's Bank of China Shenzhen Central Branch. The Shenzhen Institute of Financial Science and Technology is a joint venture with Bank of China, China Construction Bank, China Merchants Bank, and Ping An. After nearly two months of closed development, Bank, Standard Chartered Bank and BYD successfully achieved the target of the first phase of the Bay Area Trade Finance Blockchain Platform Project.

Shenzhen is the youngest city in China's population. Its multi-inclusive culture has created the quality of Shenzhen people's innovation and daring to be the best in the world, as well as the mature financial technology ecology and developed economic and financial environment. These have made Shenzhen a leader in the wave of technology such as cloud computing, artificial intelligence, and blockchain, enabling it to implement the reform and innovation mission endowed by the state and explore new paths for digital currency development.

The launch of this opinion will lead us to lead a new era of digital currency in Shenzhen and the whole country. Let us wait and see.