China's Six Major State-Owned Banks Accelerate Digital Yuan Applications: Hardware Wallets and Cross-Border Payments Highlight Breakthroughs

China's Six Major State-Owned Banks Accelerate Digital Yuan Applications: Hardware Wallets and Cross-Border Payments Highlight BreakthroughsLatest interim report information shows that major state-owned banks are actively expanding the application scenarios of the digital yuan, and have made breakthroughs in areas such as hardware wallets and cross-border payments.Cailian Press reporters have analyzed the semi-annual reports of the six major state-owned banks for 2024 and found that, except for Bank of Communications, the other five major banks have all highlighted their digital yuan business, with remarkable achievements

China's Six Major State-Owned Banks Accelerate Digital Yuan Applications: Hardware Wallets and Cross-Border Payments Highlight Breakthroughs

Latest interim report information shows that major state-owned banks are actively expanding the application scenarios of the digital yuan, and have made breakthroughs in areas such as hardware wallets and cross-border payments.

Cailian Press reporters have analyzed the semi-annual reports of the six major state-owned banks for 2024 and found that, except for Bank of Communications, the other five major banks have all highlighted their digital yuan business, with remarkable achievements.

Industrial and Commercial Bank of China (ICBC) clearly stated in its interim report that, in the first half of the year, key indicators for digital yuan personal wallets and corporate wallets have maintained a leading position in the market. The bank has made steady progress in the pilot promotion of digital yuan, achieving several breakthroughs:

• In the field of digital government affairs, ICBC has taken the lead in implementing the "one-code payment" for real estate transaction taxes and fees using digital yuan, achieving nationwide unified and standardized digital yuan tax payment through the electronic tax bureau. At the same time, it supports the payment of state-owned capital gains using digital yuan.

• In the field of serving the real economy, ICBC has innovatively launched a digital yuan factoring supply chain financing solution to support nationwide insurance institutions in setting up digital yuan premium collection channels.

• In the field of livelihood security, ICBC has partnered with mainstream internet platforms to launch a "digital yuan zero wallet" pre-paid consumption service that incorporates intelligent contracts for managing pre-paid funds.

• In the field of cross-border pilot programs, ICBC has steadily implemented the Minimum Viable Product (MVP) phase of the multilateral central bank digital currency bridge (mBridge), and is orderly expanding the pilot program of digital yuan in Hong Kong.

Agricultural Bank of China (ABC) highlighted its progress in the multilateral central bank digital currency bridge (mBridge) project. As one of the first participating banks in the project, ABC has actively engaged in the development of the bridge system, contributing to the project's successful entry into the MVP phase. At the same time, ABC has collaborated with overseas commercial banks to advance pilot programs and handle cross-border transaction payment and settlement via mBridge for multiple enterprises.

ABC has also made progress in promoting scenario construction and product innovation. The bank has actively connected with the needs of pilot region governments and enterprises to promote the application of digital yuan in areas such as non-tax payment, provident fund payment, social security, and supply chain financing. In addition, ABC has leveraged the advantages of digital yuan smart contracts to empower government and enterprise digital management, enhancing financial service levels.

Bank of China (BOC) also emphasized the steady progress of digital yuan innovative applications in its interim report. The bank has accelerated the integration of digital yuan with its traditional core businesses. In the mBridge project, BOC helped the Central Bank of the United Arab Emirates achieve the first direct cross-border payment transaction using "digital dirhams."

In addition, BOC has achieved the following breakthroughs:

• Realized innovative applications in multiple scenarios, including housing provident fund, insurance, rail transit, campus, corporate payments, and salary disbursement.

• Implemented the first nationwide application scenario for digital yuan hardware wallets without network or electricity.

• Deeply integrated with mobile banking, launching various convenient and advantageous services.

Construction Bank (CCB), as one of the first operating institutions, has fully cooperated with the People's Bank of China (PBOC) in promoting the research and development of digital yuan pilot programs. The bank is advancing the cross-border pilot program of digital yuan in Hong Kong and actively participating in the "National Shipping Trade Blockchain Platform Digital Yuan Cross-Border Payment" project, providing payment convenience for overseas visitors to China.

CCB also introduced the progress made in promoting the implementation of digital yuan application innovations in key scenarios:

• Implemented "Internet of Things technology + digital yuan" intelligent cargo transportation for catering companies.

• Implemented intelligent digital yuan payment supervision for migrant worker wages.

China Postal Savings Bank (PSBC) stated in its interim report that, under the guidance of the PBOC, the bank has accelerated the promotion of digital yuan, successfully completed research and development tasks at the central bank level, and continuously enhanced the product and service capabilities of digital yuan. PSBC has made in-depth efforts in digital yuan scenario construction. Based on the continuous creation of convenient payment scenarios covering a wide range of applications, such as digital yuan electricity bill payment, movie ticket purchase, and online shopping, PSBC is fully leveraging the advantages of digital yuan, unleashing innovative potential, and accelerating the implementation of innovative scenarios.

PSBC also stated that, as of the end of the reporting period, the number of personal wallet customers opened through the digital yuan app ranked first among operating institutions. The bank has also made breakthrough progress in the area of digital yuan hardware wallets:

• Issued the first digital yuan hardware wallet "Qingdao Yuanshin," a mobile phone airbag bracket, and implemented the first nationwide "delayed payment" model for digital yuan hardware wallet application.

• Launched the first alumni association digital yuan hardware wallet and issued multiple types of hardware wallet products based on exhibition and offline payment scenarios, such as the "China Science Fiction Convention Themed Hardware Wallet."

It is worth noting that CCB explicitly stated in its interim report that it is actively implementing the PBOC's "Digital Yuan Anti-Money Laundering and Anti-Terrorist Financing Work Guidelines" and actively coordinating with the PBOC to carry out anti-fraud work related to digital yuan. This is the first bank among the six major state-owned banks to explicitly mention digital yuan risk governance in its semi-annual report.

PSBC is also actively carrying out anti-money laundering and anti-fraud work related to digital yuan and has issued an announcement requiring strengthening the verification of the completeness and validity of personal customer identity information for digital yuan.

In summary, the interim report information of the six major state-owned banks shows that digital yuan application scenarios are continuously expanding, with breakthroughs in areas such as hardware wallets and cross-border payments. At the same time, major banks are actively cooperating with the PBOC to carry out anti-money laundering and anti-fraud work related to digital yuan, ensuring the safe and stable operation of digital yuan.

Further explanations of some content in the article:

• Digital yuan "one-code payment": Refers to integrating the payment of real estate transaction taxes and fees into a single QR code, allowing users to scan the code with their digital yuan wallet for payment, simplifying the tax payment process.

• Digital yuan factoring supply chain financing solution: Refers to leveraging the smart contract functionality of digital yuan to digitize the factoring process, enabling fast, secure, and transparent capital flow.

• Digital yuan zero wallet: Refers to pre-loading a small amount of funds in a digital yuan wallet for use in small-value transactions.

• Multilateral central bank digital currency bridge (mBridge): Refers to a cross-border payment system established through cooperation between central banks of multiple countries, enabling the exchange of digital currencies between different countries.

• Digital dirham: The digital currency issued by the United Arab Emirates. In the mBridge project, BOC helped the country complete the first cross-border payment transaction using digital dirhams.

• Hardware wallet: Refers to storing digital yuan on physical devices, such as mobile phone airbag brackets, themed hardware wallets, etc., enabling offline payments.

• Anti-money laundering and anti-fraud work: Refers to the bank's monitoring of digital yuan transactions to prevent money laundering and fraud.

Conclusion:

The six major state-owned banks are continuously making efforts in digital yuan applications, achieving a series of advancements, demonstrating the vast potential of digital yuan applications in various fields. As digital yuan application scenarios continue to expand, digital yuan will better serve the real economy and drive the development of the digital economy.