Digital RMB+Digital Economy Plays for the First Time in “Digital RMB+Supply Chain Finance” Scenario
On May 20, Shing Hui Holdings Group Co., Ltd. (abbreviated as “Shing Industry”, $SY HOLDINGS(06069.HK$ ) Announces the guidance of the Tianjin Local Financial Supervisory Authority (abbreviated as “Tianjin Finance Bureau”) and the Tianjin Branch of the Industrial and Commercial Bank of China Co., Ltd. (hereinafter referred to as the “Commercial Bank Tianjin Branch”) $ICBC(01398.HK$ With its support, we successfully landed the “Digital RMB + Supply Chain Finance” innovation app scene. This sign indicates that the digital RMB will begin to accelerate its application and promotion in the industrial scene, becoming an important driver of the development of the digital economy and the industrial Internet.
In April this year, Tianjin officially elected a digital renminbi city. Tianjin's rapid digital economy has developed rapidly in recent years, thanks to its wealth of financial and business resources and technological innovation, has laid a solid foundation for the pilot work of digital renminbi. Previously, the Tianjin “Four-Five” Financial Industry Development Plan also proposed to promote the adoption of digital renminbi and encourage financial institutions and related enterprises to participate in research and development in the construction and extension of the digital RMB ecosystem. This time, Shosha successfully placed the “Digital RMB+Supply Chain Finance” application scene, which will further advance the digitalization of the industry through an innovative model and provide more affordable supply chain financial services to SMEs.
Digital RMB — Digital Economy
The digital renminbi is a digital legal currency issued by the People's Bank of China. It is the digital form of the renminbi.
The digital renminbi has the same legal status as the real RMB. They are the legal currencies of our country, backed by the State credit and have “legal validity” and may not be refused by any entity or individual within the territory of the United Kingdom subject to conditions of acceptance. At the same time, digital RMB and banknotes, coins, etc. can be exchanged 1:1 in pairs, supporting offline transactions in the absence of a network, with the “pay as a settlement” feature. In addition, RMB Lending absorbs zonal blockchain technology to realize omnidirectional traceability and features “controllable anonymity”.
Therefore, the digital RMB can effectively address the weak traceability, homogeneity, and timeliness of traditional currencies. These three important deficiencies are important additions to existing means of payment and further enhance the communicative effectiveness of monetary policy. At the same time, the RMB will act as a catalyst for the development of digital finance, reshaping traditional account systems based on features such as pay-as-you-go settlement and account matching, effectively addressing the core challenge of closed-loop control of money flows in the supply-chain financial landscape.
In addition, the RMB, as an important asset for the development of the digital economy, has become a data band that drives the integrated development of the digital economy and the real economy. It will enable enterprises to digitally upgrade, help accelerate the development of the industrial Internet and meet the needs of social public digital payments.
Smart Contracts — Realize Oriented Payments
Smart contracts will play an important role in the application scene of digital renminbi.
A smart contract is a computer protocol that digitally facilitates the negotiation, verification, or execution of a contract. Smart contracts are the core technology of the blockchain, and the blockchain is essentially like a distributed public ledger where all transactions are publicly logged and cannot be tampered with. Therefore, smart contracts have the characteristics of automation, decentralization, non-tampering, enforceability, and more. Digital RMB can limit the flow and use of funds by loading smart contracts to realize programmability.
Smart contracts allow trusted transactions in the absence of third parties, which are traceable and non-reversible. From the user's point of view, a smart contract is often considered to be an automated security account, and when certain conditions are met, the process automatically disburses and transfers funds.
Energy Supply Chain Finance — Strengthening Smart Wind Control
Digital RMB is based on blockchain technology and smart contract applications that record all transaction behavior, and each trading cycle is traceable and tamper-proof. This enables supply-chain financial firms to more accurately verify the authenticity and reasonableness of the transactions of SMEs, track the entire post-disbursement process, while leveraging smart contracts to establish conditions of use to prevent misappropriations and withholdings. This can guarantee the financial security of supply chain financial firms at the root and provide a way to verify transaction authenticity for a large number of SMEs.
With digital RMB transaction records, it is easier for quality SMEs to obtain supply chain financing, thanks to traceable transaction records throughout the process, which makes it easier to approve funds and increase funding levels accordingly. This effectively solves the financing difficulties and problems of SMEs due to the inability to meet traditional credit entry standards. Supply chain financial enterprises strengthen their smart wind control capabilities with digital RMB to solve lender and borrower mutual trust issues at the root, eliminate information isolates, and further break the reliance on core business integrity and assurance.
As the application of the digital RMB gradually deepens into the industry scene, the RMB will become more closely linked with supply chain finance, becoming one of the important directions for the deepening and development of the digital RMB.
Providing Affordable Financial Services — Driving Digital Financial Innovation
Currently, the epidemic has had a dramatic impact on SMEs in Shanghai. Zhongxiang Engineering Materials Co., Ltd. (abbreviated as “Zhongxiang Engineering”), as a Shanghai small and medium-sized enterprise experiencing the “digital renmin+supply chain finance” scene, has successfully received $280 million in financing financing issued in the form of digital renminbi.
Industry insiders pointed out that this is not only an innovation in the field of supply-chain finance, but also an important discovery to solve the difficulties faced by SMEs in Shanghai through the use of digital RMB during the pandemic. For Zhongxiang engineering, it is possible not only to obtain efficient and affordable supply chain financial services during the pandemic, but also digital renminbi as a new payment channel, without paying any services or processing fees, saving cash on third-party payment tools, and the speed, efficiency, and security are good. Increased affordability of universal finance.
“Tianjin Financial Bureau firmly grasps the opportunities of digital renminbi testing, efficiently empowering local financial institutions and promoting digital financial innovation,” Shengcheng said. With the support and guidance of the Tianjin Finance Bureau, Shengo is honored to work with the Tianjin Branch of the Industrial and Commercial Bank to implement a combination of digital renminbi and supply chain finance. After the application stage, Shima will continue to explore innovative applications of the RMB in the industry scene and integrate the Group's industrial technology boards to apply digital technology to smart supply chain solutions such as SPDs for smart sites and hospitals. At the same time, Shosha will continue to upgrade the account system through digital renminbi and smart contracts, implement round-the-clock closed-loop supervision, strengthen big data analytics capabilities and smart wind control levels, and efficiently address the supply chain financing needs of SMEs.”
As a leading supply chain technology platform, Shengo has built supply chain technology platforms that have served the country's strategic industries such as infrastructure, pharmaceuticals and energy through the dual drive of industrial technology and digital finance. With technology solutions such as smart sites and SPD smart supply chain services in hospitals, Shosha drives the real digital upgrade of the industry, while leveraging big data analytics to communicate information walls and platforms to link the asset and capital side to efficiently solve the supply chain financing needs of SMEs. As of the end of last year, Sakho has deepened the digital ecosystem of many large core enterprises, totally-processed supply chain asset sizes have exceeded RMB 1,300 and provide flexible supply chain financial services to more than 10,000 SMEs.
“The digital renminbi is the financial infrastructure that supports the development of the digital economy, ushering in a new era of digital economy development, filled with endless possibilities in terms of innovative applications,” Shangyu said. In the area of supply chain financial services, we can also extend the application of the RMB to the development of labor wages, such as by loading a digital RMB smart contract on the Peasant Pay Prizes Account in the Infrastructure Territory, in order to ensure that labor wages are distributed on time and further protect the interests of farmers. In the public interest sector, we can also leverage the controllable anonymity and traceability of the digital RMB to ensure the legitimate, fair use of public funds, improve the accuracy of public assistance and the precise management of real welfare operations.”
In the future, Shima will continue to use digital technologies, further strengthen cooperation with financial institutions, continue to strengthen its innovation capacity, without compromising the application scene of the rich digital RMB, and provide more flexible supply chain financial services to SMEs, making supply chains more efficient and more affordable.
In April this year, Tianjin officially elected a digital renminbi city. Tianjin's rapid digital economy has developed rapidly in recent years, thanks to its wealth of financial and business resources and technological innovation, has laid a solid foundation for the pilot work of digital renminbi. Previously, the Tianjin “Four-Five” Financial Industry Development Plan also proposed to promote the adoption of digital renminbi and encourage financial institutions and related enterprises to participate in research and development in the construction and extension of the digital RMB ecosystem. This time, Shosha successfully placed the “Digital RMB+Supply Chain Finance” application scene, which will further advance the digitalization of the industry through an innovative model and provide more affordable supply chain financial services to SMEs.
Digital RMB — Digital Economy
The digital renminbi is a digital legal currency issued by the People's Bank of China. It is the digital form of the renminbi.
The digital renminbi has the same legal status as the real RMB. They are the legal currencies of our country, backed by the State credit and have “legal validity” and may not be refused by any entity or individual within the territory of the United Kingdom subject to conditions of acceptance. At the same time, digital RMB and banknotes, coins, etc. can be exchanged 1:1 in pairs, supporting offline transactions in the absence of a network, with the “pay as a settlement” feature. In addition, RMB Lending absorbs zonal blockchain technology to realize omnidirectional traceability and features “controllable anonymity”.
Therefore, the digital RMB can effectively address the weak traceability, homogeneity, and timeliness of traditional currencies. These three important deficiencies are important additions to existing means of payment and further enhance the communicative effectiveness of monetary policy. At the same time, the RMB will act as a catalyst for the development of digital finance, reshaping traditional account systems based on features such as pay-as-you-go settlement and account matching, effectively addressing the core challenge of closed-loop control of money flows in the supply-chain financial landscape.
In addition, the RMB, as an important asset for the development of the digital economy, has become a data band that drives the integrated development of the digital economy and the real economy. It will enable enterprises to digitally upgrade, help accelerate the development of the industrial Internet and meet the needs of social public digital payments.
Smart Contracts — Realize Oriented Payments
Smart contracts will play an important role in the application scene of digital renminbi.
A smart contract is a computer protocol that digitally facilitates the negotiation, verification, or execution of a contract. Smart contracts are the core technology of the blockchain, and the blockchain is essentially like a distributed public ledger where all transactions are publicly logged and cannot be tampered with. Therefore, smart contracts have the characteristics of automation, decentralization, non-tampering, enforceability, and more. Digital RMB can limit the flow and use of funds by loading smart contracts to realize programmability.
Smart contracts allow trusted transactions in the absence of third parties, which are traceable and non-reversible. From the user's point of view, a smart contract is often considered to be an automated security account, and when certain conditions are met, the process automatically disburses and transfers funds.
Energy Supply Chain Finance — Strengthening Smart Wind Control
Digital RMB is based on blockchain technology and smart contract applications that record all transaction behavior, and each trading cycle is traceable and tamper-proof. This enables supply-chain financial firms to more accurately verify the authenticity and reasonableness of the transactions of SMEs, track the entire post-disbursement process, while leveraging smart contracts to establish conditions of use to prevent misappropriations and withholdings. This can guarantee the financial security of supply chain financial firms at the root and provide a way to verify transaction authenticity for a large number of SMEs.
With digital RMB transaction records, it is easier for quality SMEs to obtain supply chain financing, thanks to traceable transaction records throughout the process, which makes it easier to approve funds and increase funding levels accordingly. This effectively solves the financing difficulties and problems of SMEs due to the inability to meet traditional credit entry standards. Supply chain financial enterprises strengthen their smart wind control capabilities with digital RMB to solve lender and borrower mutual trust issues at the root, eliminate information isolates, and further break the reliance on core business integrity and assurance.
As the application of the digital RMB gradually deepens into the industry scene, the RMB will become more closely linked with supply chain finance, becoming one of the important directions for the deepening and development of the digital RMB.
Providing Affordable Financial Services — Driving Digital Financial Innovation
Currently, the epidemic has had a dramatic impact on SMEs in Shanghai. Zhongxiang Engineering Materials Co., Ltd. (abbreviated as “Zhongxiang Engineering”), as a Shanghai small and medium-sized enterprise experiencing the “digital renmin+supply chain finance” scene, has successfully received $280 million in financing financing issued in the form of digital renminbi.
Industry insiders pointed out that this is not only an innovation in the field of supply-chain finance, but also an important discovery to solve the difficulties faced by SMEs in Shanghai through the use of digital RMB during the pandemic. For Zhongxiang engineering, it is possible not only to obtain efficient and affordable supply chain financial services during the pandemic, but also digital renminbi as a new payment channel, without paying any services or processing fees, saving cash on third-party payment tools, and the speed, efficiency, and security are good. Increased affordability of universal finance.
“Tianjin Financial Bureau firmly grasps the opportunities of digital renminbi testing, efficiently empowering local financial institutions and promoting digital financial innovation,” Shengcheng said. With the support and guidance of the Tianjin Finance Bureau, Shengo is honored to work with the Tianjin Branch of the Industrial and Commercial Bank to implement a combination of digital renminbi and supply chain finance. After the application stage, Shima will continue to explore innovative applications of the RMB in the industry scene and integrate the Group's industrial technology boards to apply digital technology to smart supply chain solutions such as SPDs for smart sites and hospitals. At the same time, Shosha will continue to upgrade the account system through digital renminbi and smart contracts, implement round-the-clock closed-loop supervision, strengthen big data analytics capabilities and smart wind control levels, and efficiently address the supply chain financing needs of SMEs.”
As a leading supply chain technology platform, Shengo has built supply chain technology platforms that have served the country's strategic industries such as infrastructure, pharmaceuticals and energy through the dual drive of industrial technology and digital finance. With technology solutions such as smart sites and SPD smart supply chain services in hospitals, Shosha drives the real digital upgrade of the industry, while leveraging big data analytics to communicate information walls and platforms to link the asset and capital side to efficiently solve the supply chain financing needs of SMEs. As of the end of last year, Sakho has deepened the digital ecosystem of many large core enterprises, totally-processed supply chain asset sizes have exceeded RMB 1,300 and provide flexible supply chain financial services to more than 10,000 SMEs.
“The digital renminbi is the financial infrastructure that supports the development of the digital economy, ushering in a new era of digital economy development, filled with endless possibilities in terms of innovative applications,” Shangyu said. In the area of supply chain financial services, we can also extend the application of the RMB to the development of labor wages, such as by loading a digital RMB smart contract on the Peasant Pay Prizes Account in the Infrastructure Territory, in order to ensure that labor wages are distributed on time and further protect the interests of farmers. In the public interest sector, we can also leverage the controllable anonymity and traceability of the digital RMB to ensure the legitimate, fair use of public funds, improve the accuracy of public assistance and the precise management of real welfare operations.”
In the future, Shima will continue to use digital technologies, further strengthen cooperation with financial institutions, continue to strengthen its innovation capacity, without compromising the application scene of the rich digital RMB, and provide more flexible supply chain financial services to SMEs, making supply chains more efficient and more affordable.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.
Read more
Comment
Sign in to view/post comments
The official account of SY Holdings Group Limited
Shengye is a leading supply chain technology platform dedicated to making supply chains more efficient and finance more inclusive.
6422Followers
19KVisitors
Follow