CITIC Securities: Banks need to seize the opportunity to increase the penetration rate of digital RMB

Foresight News reports that according to a research report from CITIC Securities, the Digital Renminbi is evolving from the “central bank liability type” 1.0, which replaces cash, to the “deposit currency type” 2.0, which is incorporated into the commercial bank liability system. Its accounts can accrue interest and meet reserve requirements, effectively becoming general deposits. This institutional adjustment helps to strengthen the stability of bank liabilities, enhances the efficiency of monetary policy transmission under the reserve and interest rate framework, and significantly boosts the endogenous incentives for commercial banks to promote the Digital Renminbi. From an industry perspective, the Digital Renminbi is expected to become an important tool for the linkage between corporate and retail sectors, and to form a certain substitution for third-party platforms in the payment process. It is anticipated that the subsequent development focus of bank Digital Renminbi services will shift from qualification to capability. Banks need to accelerate the transition from account management to scenario-based professional services and seize opportunities to increase the penetration rate of the Digital Renminbi.