CITIC Securities: Banks need to seize the opportunity presented by the increasing penetration rate of the digital yuan.

and reported by Jin10, a research report from CITIC Securities states that the digital renminbi is upgrading from the "central bank liability type" 1.0, which replaces cash, to the "deposit currency type" 2.0, which is incorporated into the commercial bank liability system. Its accounts can earn interest and pay reserve requirements, effectively becoming general deposits. This institutional adjustment helps to solidify the stability of bank liabilities and enhances the transmission efficiency of monetary policy under the reserve and interest rate framework, while significantly increasing commercial banks' intrinsic incentives to promote the digital renminbi.From an industry impact perspective, the digital renminbi is expected to become an important tool linking corporate and retail sectors, and to partially replace third-party platforms in the payment process. It is anticipated that the future development focus of banks' digital renminbi business will shift from qualification to capability. Banks need to accelerate the transition from account operations to scenario-based specialized services and seize the opportunity to increase digital renminbi penetration.