Guangfa Securities: Digital RMB enters the 2.0 era

Guangfa Securities research report pointed out that the digital RMB has entered the 2.0 era. The People's Bank of China issued the "Action Plan on Further Strengthening the Management Service System of Digital RMB and the Construction of Related Financial Infrastructure", clarifying that the new generation of digital RMB has the liability attribute of commercial banks, is a digital deposit currency, can pay interest, and is included in the deposit reserve and deposit insurance system; which means that the digital RMB has transitioned from the liability of the central bank to the liability of commercial banks, achieving an important leap from M0 to M1. Looking at the development of global CBDC, the paths are significantly differentiated, which can be summarized into three major trends. Firstly, actively researching and developing retail CBDC, anchoring currency sovereignty and payment autonomy. Typical representatives include China, the European Union, and Russia. Secondly, focusing on payment system innovation to replace retail CBDC issuance, continuously promoting wholesale CBDC and cross-border coordination. Typical representatives include the United Kingdom, Canada, and Japan. Thirdly, delaying or prohibiting the advancement of CBDC. Among them, the United States has the most conservative and extreme attitude towards CBDC, mainly considering that the debut of the digital dollar could significantly reduce the accumulation and demand for offshore physical dollars globally, weaken the interest-free capital rental income brought by the privilege of the dollar, and erode its international financial status.