Newland: Will continue to carry out forward-looking innovative research and development of the digital yuan

China Securities Network News (reporter Qi Jinzhao) From the initial pilot offline daily consumption scenarios, to the successive access to taxation, public affairs, e-commerce platforms and other entrances, the digital yuan pilot application is moving towards the goal of full-scenario coverage. A few days ago, the relevant person in charge of Newland (000997) said in an exclusive interview with a reporter from China Securities News that as one of the companies deeply involved in the pilot work of digital yuan, Newland will continue to increase strategic investment in the field of digital yuan and continue to carry out forward-looking innovative research and development.

"The landing of the digital yuan has brought multi-dimensional market opportunities to related companies in the industrial chain." Lin Lin, president of the Newland Internet of Things Research Institute, told reporters that first of all, the promotion of the digital yuan has put forward new requirements for the construction of the bank's IT system, which will bring incremental business to the relevant system development companies; secondly, from the merchant side, the existing payment equipment has upgrade needs, and the hardware equipment such as smart POS needs to be updated. In addition, in terms of merchant operations, after the landing of new scenes, it will also bring new business opportunities, the upcoming Winter Olympics will be an attempt to apply the multi-dimensional scenario of digital yuan, and Newland is actively preparing and assisting relevant parties to carry out scene construction work.

Lin Lin said that Newland is a leading enterprise in the shipment volume of POS machines in the Asia-Pacific region, and now with the pilot of the digital yuan, the company has been deeply involved in a number of digital yuan projects relying on the original technology and market advantages. In terms of digital rmb infrastructure construction, Newland has set up relevant subsidiaries to focus on the ecological construction support and operation services of the digital yuan. At the same time, as the world's leading financial payment terminal brand, the company's full range of intelligent POS has supported digital yuan payment, realizing the seamless docking of the offline consumption environment and the digital yuan.

Xu Fangning, secretary of the board of directors of Newland, said that Newland has led the reform and upgrading of China's multi-generation payment methods in the past two decades, forming a deep industrial accumulation and technology accumulation, from card payment to code payment to face recognition payment, from electronic payment to digital RMB payment, the company has continued to increase its core technical capabilities, and has participated in the digital yuan pilot in Shenzhen, Chengdu, Suzhou and other places. Facing the future, the company is highly optimistic about the industrial opportunities brought by the digital yuan, and will continue to increase its strategic investment in the field of digital yuan and continue to carry out forward-looking innovative research and development.

Behind the relevant companies in the industrial chain, a new market of 100 billion is about to emerge. According to Huaan Securities, the upgrading of the digital RMB software and hardware industry will bring about 140 billion yuan of market space. Specifically, ATM upgrades exceeded 50 billion yuan, hard wallet construction exceeded 30 billion yuan, smart counter card issuers upgraded more than 30 billion yuan, merchant POS equipment upgrades nearly 20 billion yuan, and bank core system transformation exceeded 5 billion yuan.

However, it is worth noting that there are still many challenges in the process of accelerating the full-scenario coverage of the digital yuan. A few days ago, Mu Changchun, director of the Digital Currency Research Institute of the Chinese Bank, said frankly that the official launch of the digital yuan faces many challenges: the construction of acceptance terminals; a sound security and risk management mechanism; and a clear regulatory framework.

"In terms of user experience, the experience of using the digital yuan will not be significantly different from the current electronic payment." Lin Lin believes that the digital yuan itself has the two major attributes of "currency" and "digital +", and for related companies in the industrial chain, it is relatively narrow to understand the digital yuan only from the concept of "currency", and we should pay attention to the changes brought about by "digital +" behind it. For the digital yuan, users and investors should be wary of concept speculation, and should look for industrial value and investment opportunities from the aspect of improving the digital governance capabilities of the whole society.