Digital RMB to “double festival” to promote consumption

The Mid-Autumn Festival and National Day holidays are traditional peak seasons for consumption, and digital renminbi frequently appears in consumption promotion activities in various places. For example, Guangming District in Shenzhen issued digital RMB consumption coupons; Hangzhou, Zhejiang Province issued special consumption coupons for digital RMB catering in Hangzhou for the 2023 “Asia Games Leading Consumption in Hangzhou” – “Asian Food Season”; Nanjing, Suzhou, Suqian, Wuxi, etc. in Jiangsu Province Local governments have successively issued digital RMB consumption coupons; Jinan, Shandong Province has issued digital RMB consumption coupons for Quancheng purchase…

In recent years, promoting consumption has been the main focus of the combination of policies to stabilize growth. Local governments have carried out or planned to direct consumption subsidies to residents to stimulate consumer demand and stimulate the vitality of production and circulation. In this process, the digital RMB gives full play to its business and technological advantages, fully supports governments at all levels to implement consumption subsidies based on the digital RMB, supports the precise, safe and efficient release of financial funds, and ensures the effect of policy implementation.

A reporter from the Associated Press learned that since the pilot of digital RMB the write-off rate of most consumer coupons issued using digital renminbi has exceeded 90%, and the write-off rate in some localities has even been as high as 99%. In terms of the effect of stimulating consumption, according to incomplete statistics, the consumption amplification effect of digital RMB consumption coupons issued in pilot areas exceeds 15 times, effectively promoting social consumption replenishment and potential release.

In the view of industry insiders, such a report card fully verifies the feasibility, stability, safety and effectiveness of the digital RMB as a national legal currency.

Since the beginning of this year, governments at all levels from the central to local governments have frequently introduced policies to promote consumption, and the intensity of promoting consumption is expected to be even greater in the future. Based on its business and technological advantages, the digital renminbi is expected to play a greater role in promoting consumption in the next step and serve the real economy more effectively.

The application of digital RMB smart contract technology can meet the differentiated needs of the government and customize the conditions for the use of financial subsidies from multiple dimensions such as region, industry, goods or services. For example, it can simplify the operating procedures of the financial department, refine the use conditions of consumption subsidies, improve the automation of user application and issuance, realize the monitoring of the entire process of fund issuance and use, and strengthen the implementation guarantee of consumption subsidies.

“If a variety of new consumption scenes and new forms of business can stimulate surging new consumption vitality, then convenient and trendy forms of consumption and payment can also stimulate consumption vitality. Data such as write-off rate and consumption amplification effect have shown the advantages of digital RMB in the field of promoting consumption, and the next step is to include digital RMB consumption vouchers into the “combination” of local policies to promote consumption.

During this year’s Mid-Autumn Festival and National Day “Double Festival” holidays, various forms of consumption promotion activities have been launched in the digital RMB.The digital renminbi has frequently appeared in these consumption promotion activities.Industry experts believe that on the one hand, the efforts to promote consumption are expected to increase, on the other hand, past data prove that the digital RMB has strong business and technological advantages in the process of promoting consumption, and the digital RMB is expected to play a greater role in promoting consumption in the next step.