Guotai Haitong: DIGIHUMAN RMB is expected to usher in new development opportunities, it is recommended to pay attention to the relevant industry chain.

Guotai Haitong released a research report stating that the Western Land-Sea New Channel connects to the Belt and Road Economic Belt in the north, links to the 21st Century Maritime Silk Road in the south, and synergizes with the Yangtze River Economic Belt, making it an important international logistics channel. It will become a key driver in expanding the use of the Renminbi for cross-border transactions, and DIGIHUMAN Renminbi is expected to embrace new development opportunities. It is recommended to pay attention to related industry chains such as bank IT systems, payment ecosystems, and infrastructure such as hardware wallets and financial instruments. Key viewpoints from Guotai Haitong: Opinions on Financial Support to Accelerate the Construction of the Western Land-Sea New Channel released China's central bank and eight departments jointly released the "Opinions on Financial Support to Accelerate the Construction of the Western Land-Sea New Channel" on December 24th. The "Opinions" outline 21 key measures to enhance financial organization cooperation, establish a high-quality fund communication system, promote institutional reform and innovation, build a digital financial service platform, improve financial open cooperation system, and deepen cross-provincial and cross-border financial regulatory cooperation. The support is aimed at effectively utilizing the core financial functions of "financing" and "clearing" to promote high-quality development of the Western Land-Sea New Channel. The financial service system for the channel will be comprehensively enhanced, cross-border trade settlement system optimized, and the use of Renminbi for cross-border transactions further expanded according to the "Opinions". Facilitating cross-border trade settlement, expanding the use of Renminbi for cross-border transactions In terms of cross-border settlement, the "Opinions" support banks that meet the requirements to handle genuine and compliant settlement transactions for high-quality enterprises through the principles of "know your customer, know your business, due diligence review". It also supports facilitating cross-border settlement in both domestic and foreign currencies for market procurement trade and cross-border e-commerce. To expand the use of Renminbi for cross-border transactions, the "Opinions" propose strengthening bilateral currency cooperation with countries in Southeast Asia and Central Asia to support the use of Renminbi for cross-border transactions. It also supports ASEAN investors to invest in Renminbi, reinvest domestically, and for qualified banks in provinces (regions, cities) along the route to join the Renminbi cross-border payment system. DIGIHUMAN Renminbi welcomes new development opportunities The "Opinions" suggest utilizing the advantages of DIGIHUMAN Renminbi in payment settlement, low costs, and programmability by researching innovative solutions using DIGIHUMAN Renminbi smart contracts, and exploring the feasibility of expanding its application in payment settlement, financing, and tax refunds. It also researches expanding the application of DIGIHUMAN Renminbi across borders and utilizing bilateral and multilateral cross-border business models to reduce costs and increase efficiency in cross-border payments for the channel. Risk warning Policy fluctuations risk; Policy implementation falling short of expectations; Technological development falling short of expectations.