Sinolink: DIGIHUMAN RMB is transitioning from the M0 era to the M1 era, with more comprehensive risk protection.

Sinolink released a research report stating that the "14th Five-Year Plan" mentions the steady development of DIGIHUMAN digital currency. As a national financial infrastructure, DIGIHUMAN digital currency is expected to optimize the efficiency of monetary policy transmission and support the internationalization of the renminbi. The development and expansion of application scenarios of DIGIHUMAN digital currency are also expected to bring opportunities to the payment sector, with related industries and targets expected to benefit. Sinolink's main points are as follows: Event overview The People's Bank of China issued an "Action Plan for Further Strengthening the Management Service System of DIGIHUMAN Digital Currency and Related Financial Infrastructure Construction." The new generation of DIGIHUMAN digital currency measurement framework, management system, operating mechanism, and ecosystem will officially start implementation on January 1, 2026. DIGIHUMAN digital currency moves from the M0 era to the M1 era Previously, DIGIHUMAN digital currency was mainly positioned in M0 and did not bear interest. According to reports, the "Action Plan" specifies that banks should pay interest on the verified DIGIHUMAN digital currency wallet balances of customers and adhere to the deposit interest rate pricing self-discipline agreement. The DIGIHUMAN digital currency operated by banking institutions will be included in the reserve system framework management, and the balances of DIGIHUMAN digital currency wallets opened by them will be uniformly included in the base for reserve deposit. Non-bank payment institutions participating in DIGIHUMAN digital currency operation will implement 100% DIGIHUMAN digital currency margin. The balances of DIGIHUMAN digital currency wallets will be included in corresponding monetary levels based on liquidity. This mechanism marks the entry of DIGIHUMAN digital currency into the deposit era of version 2.0. Upgrade of technical architecture The "Action Plan" specifies a digital solution of "account system + digital currency + smart contract," proposing to upgrade the existing account system, promote the application of emerging technologies on the basis of new accounts (DIGIHUMAN digital currency wallet), enhance the digitization and smartness of various links in RMB issuance, circulation, and payments, upgrade the DIGIHUMAN digital currency smart contract ecosystem service platform, and support the construction of an open-source ecosystem of smart contracts. Further optimization of the "two-tier structure" At the top central bank level, the central bank is responsible for formulating business rules and technical standards for DIGIHUMAN digital currency, and undertakes the planning, construction, and operation of relevant infrastructure. At the second-tier business operation level, commercial banks open DIGIHUMAN digital currency wallets for individuals and entities on their interfaces, are responsible for the security of customers' DIGIHUMAN digital currency, provide circulation payment services, undertake corresponding compliance and anti-money laundering responsibilities, are included in the deposit insurance category, and enjoy the same level of security as deposits. Non-bank payment institutions provide DIGIHUMAN digital currency for customers through their own bank deposits, which are liabilities of non-bank payment institutions and are legally included in DIGIHUMAN digital currency margin supervision. Comprehensive risk protection Banks can independently conduct asset and liability management of DIGIHUMAN digital currency wallet balances, with deposit insurance providing the same level of security as deposits. The People's Bank of China will establish a DIGIHUMAN digital currency management committee to coordinate relevant business lines, carry out functional supervision within their respective responsibilities, form a joint force, and ensure full coverage of functional supervision. Risk warning: Policy progress is slower than expected; digital currency technology risks; industry competition risks.