Continuously enriching the usage scenarios of digital RMB | Scenarios | Usage

Recently, the Ministry of Human Resources and Social Security issued the "Implementation Plan for Digital Human Resources and Social Security Construction Action", which requires improving the level of social security card social bank linkage services and exploring the promotion of the loading of digital RMB payment functions on social security cards. In the view of industry insiders, social security cards have the characteristics of large issuance and high usage frequency. Loading digital RMB payment function on social security cards can not only further expand the application of social security cards, but also accelerate the popularization of digital RMB, creating a win-win multiplier effect.

The reporter noticed that various regions across the country are gradually carrying out the replacement of third-generation social security cards. The third-generation social security cards have functions such as identity credentials, information recording, self-service inquiry, medical settlement, payment and benefit collection, financial payment, urban transportation, etc. They are an important carrier for cardholders to enjoy human resources, social security, and other public service rights.

With the addition of digital RMB payment functions to social security cards in various regions in the future, the huge user base of social security cards will greatly accelerate the popularization of digital RMB, providing more opportunities for the public to learn about digital RMB. According to data previously released by the Ministry of Human Resources and Social Security, as of the end of March 2023, the number of social security card holders in China has reached 1.37 billion, covering 97% of the population.

"The loading of digital RMB payment function on social security cards can help accelerate the promotion progress of digital RMB, increase user scale and the number of digital wallets opened. For social security cards, digital RMB can provide more diverse payment options, and features such as traceability and controllable anonymity can also ensure the safe and efficient use of social security cards." Su Xiaorui, a senior consultant in the financial industry at Analysys, believes that the combination of social security cards and digital RMB hardware wallets will provide more payment convenience for specific groups.

It is worth mentioning that commercial banks have begun to explore and layout in the field of "social security cards+digital RMB". For example, Bank of China has designed a solution for third-generation social security cards to load digital RMB hardware wallets, in order to further explore and enhance the application and promotion of urban public service carriers based on personal social security digital identity, and provide more convenience and benefits to the public.

According to Li Xin, Chief Business Manager of the Digital Currency Office of Bank of China, the presentation form of the third-generation social security card loaded with digital RMB hardware wallet designed by Bank of China will not only stay in the form of physical cards, but also plan to launch new forms suitable for various new scenarios and groups of people, such as bracelets, carry on tags, etc., expanding the usage scenarios to people's consumption scenarios, elderly care scenarios, payment field scenarios, transportation and travel scenarios, and benefit collection scenarios, and serving a broader social group.

"As a supply side financial innovation tool, the digital renminbi has a natural compatibility with the new requirements of a comprehensive social security system that covers the entire population, coordinates urban and rural areas, is fair and unified, safe and standardized, sustainable, and multi-level. The deep integration of the digital renminbi and social security is in line with the trend and direction of digital economy development," said Li Xin.

Experts believe that loading the digital RMB payment function on social security cards, taking advantage of each other's strengths, is a new practice to follow the path of financial development with Chinese characteristics, which is conducive to improving the level of inclusive finance and the sense of gain for the people.

Since the beginning of this year, digital RMB has been continuously exploring new application scenarios in pilot areas, from the distribution of digital RMB red envelopes, to salary distribution, and even to the use of funds for purchase. At present, the pilot scenarios of digital RMB include both online and offline, covering wholesale and retail, catering and tourism, education and medical care, public transportation, government payment, tax collection, subsidy distribution, and other fields. The State Administration of Taxation recently revealed that the pilot digital RMB tax payment function has paid a total of 12000 taxes and fees of 25.9 billion yuan this year.

"For digital currencies and payment tools, the richness of scenarios often affects users' choices and user experience." Dong Ximiao, Chief Researcher of Zhaolian, said that local governments in pilot areas have already carried out a lot of work around the promotion of digital renminbi, creating a good application environment for the steady progress of the pilot project of digital people's currency. This exploration will promote the loading of digital RMB payment functions on social security cards, leveraging the characteristics of digital RMB such as "payment settlement", and improving the digital level and service efficiency in the field of social security.

The research report of China International Capital Corporation (CICC) points out that since the beginning of this year, many regions have successively launched pilot work plans for digital RMB, further clarifying the main goals, steps, and guarantee mechanisms for promoting digital RMB pilot projects in the future. With the further clarification of the pilot work goals for digital RMB in various regions, the "flywheel effect" of digital RMB may be forming, and it is expected to usher in a period of rapid development in the next three years.

"Next, we should further strengthen the construction of digital RMB application scenarios, attract more public and institutions to use through a sound ecosystem and rich application scenarios, improve usage frequency and user experience. At the same time, we can explore better leveraging the functions of digital RMB in public services and other aspects, and help achieve government digitization and intelligent governance." Dong Ximiao said.