Shenzhen is expected to be the first in the country to pilot central bank digital currency

According to Shenzhen Evening News, under the guidance of the Shenzhen Municipal Government, more than 40 well-known financial institutions at home and abroad, including Ping An Group, China Merchants Bank, WeBank, and Dacheng Fund, jointly established the first China (Shenzhen) Fintech Digital Currency Alliance and China (Shenzhen) Fintech Research Institute in the country, which is expected to take the lead in the country to pilot the central bank's digital currency.

"The newly established alliance and research institute will strive to become the most authoritative and influential organization and scientific research base in the industry, promote Shenzhen to become a financial innovation center with global influence, and build a world-class industrial innovation and development 'source'." He Xiaojun, director of the Municipal Financial Office, introduced.

It is understood that this is also the first local city in China to initiate the establishment of a financial technology alliance and research institute from the strategic heights of national financial innovation and opening up and promoting the internationalization of the RMB, following the announcement of the establishment of the Digital Currency Research Institute by the central bank. "I believe this move will help Shenzhen take the lead in seizing the commanding heights and gaining the initiative in the domestic and even global financial opening competition." An industry expert commented.

Starting from promoting the pilot study and application of digital currency, the Shenzhen Municipal Government will launch special policy measures to support financial technology through the "1+2+3+N" model, namely, issuing one comprehensive support policy, building two entrepreneurial innovation capital platforms, establishing three market-oriented characteristic mother funds for seed stage, RMB overseas investment and lending, and M&A investment, planning and building characteristic venture capital fund clusters such as Futian Xiangmi Lake and Qianhai Fund Town, cultivating and attracting financial technology talents, and striving to form a situation of coordinated interaction of "innovation + entrepreneurship + venture capital".

Shenzhen may be the best testing ground for digital currency

At present, new technologies are not only strongly promoting the transformation of the traditional financial industry, but also giving birth to emerging financial formats. Financial technology has penetrated into all areas of the financial industry and has become a leading force in innovation-driven development. "Especially with the development of Internet technology and the profound changes in global payment methods, legal digital currencies with higher operating efficiency and stronger economic adaptability are becoming a new trend in the development of future currencies." He Xiaojun introduced that the Shenzhen Special Economic Zone has active financial innovation and developed high-tech industries, and has the foundation and conditions to develop digital currencies and build a global financial innovation center.

The reporter learned that by the end of November 2016, the total assets of Shenzhen's financial industry reached 12.6 trillion yuan, ranking third in the country and 19th in the latest "Global Financial Center Index". At the same time, the added value of Shenzhen's strategic emerging industries has an average annual growth rate of 17.4%, accounting for 40% of GDP. The proportion of social R&D investment in GDP reached 4.1%, and PCT international patent applications accounted for 51.7% of the country, ranking first among major cities in the country for 10 consecutive years.

Shenzhen has more than 8,000 national high-tech enterprises, including a number of local leading enterprises such as Huawei, ZTE, Tencent, Ping An, and China Merchants Bank, as well as a number of highly representative innovative financial technology companies such as WeBank, Tenpay, and China Securities Finance.

"It can be said that Shenzhen is the best testing ground and place to implement the central government's mission of financial reform and innovation and explore the implementation of the national digital currency strategy. It is also the city in China with the best conditions to rival global financial technology innovation centers such as Silicon Valley in the United States and Israel," said He Xiaojun.

Promote the establishment of digital currency operating entities in Shenzhen

The central bank issues legal digital currency to replace physical cash, reduce the cost of issuing and circulating traditional paper currency, and improve the convenience and transparency of economic transactions. Currently, central banks of major economies around the world are competing for digital currency.

The People's Bank of China attaches great importance to digital currency. In November this year, the central bank prepared to set up a digital currency research institute. Yao Qian, head of its preparatory group, said that the launch of legal digital currency will follow the principle of gradual progress. The central bank is studying the selection of one or two closed application scenarios (such as the bill market) for preliminary trials.

"First, Shenzhen will pay attention to the policy direction of the central bank, plan research in advance, strive for pilot projects, strive for digital currency promotion pilot qualifications, and cooperate in establishing a digital currency operation supervision system." He Xiaojun said.

Secondly, Shenzhen will give full play to its advantages in the financial and technological industries, explore the establishment of a digital currency research achievement award, create a financial technology special award under the framework of the city's financial innovation award, etc., and focus on rewarding outstanding teams and projects in the fields of digital currency, blockchain, and financial big data applications.

Third, strive to settle down a digital currency platform with strategic significance. The Municipal Financial Office will accelerate the implementation of RMB digital currency operating entities in Shenzhen according to the deployment of the municipal government.

Fourth, strengthen the intellectual support for the development and promotion of digital currency. Encourage colleges and universities to set up special courses on digital currency, blockchain and other financial technologies to cultivate digital currency professionals; encourage scientific research institutes and financial institutions to increase the development and application of digital currency and accumulate market experience in digital currency, blockchain technology, etc.