Since China’s central bank’s digital currency (DC/EP) shifted from behind-the-scenes to front-stage in October last year, all countries have stepped up research and development on central bank digital currency (CBDC), setting off a CBDC craze around the world.

Summary

Summary

Topic: G7 teamed up to set off another CBDC boom. On July 20, the Group of Seven (referred to as G7, including the United States, Britain, Germany, France, Japan, Italy, and Canada) basically decided to cooperate on the issuance of CBDC. Among them, the EU countries focus on the research and development of the digital euro, the United States and Canada are already working on it, and Japan is the most active in the development of CBDC. Compared with the G7 countries, the DC/EP of the People's Bank of China started earlier and progressed faster, and it is starting to cooperate with major Internet companies to explore landing scenarios.

Market: ETH skyrocketed, driving the market upward. The total market value of digital tokens this week was US$292.76 billion, an increase of US$15.22 billion or about 5.5% compared to last week; the average daily trading volume was US$55.86 billion, a decrease of 0.3% from last week, and the average daily turnover rate was 19.5% , down 0.6% from last week. The current price of BTC is 9536.9 US dollars, with a weekly increase of 4.2%, and the average daily trading volume is 15.5 billion US dollars. The current price of ETH is 279.22 US dollars, a weekly increase of 20%, and the average daily trading volume is 7.36 billion US dollars. This week, the BTC balance on the exchange was 2.359 million, a decrease of 1048 from last week. The balance of ETH on the exchange was 13.726 million, an increase of 393,000 from last week. Among the BICS secondary industries, the proportion of the leisure and entertainment industry has increased significantly.

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Risk warning: regulatory policy risk, market trend risk

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1. G7 teamed up to set off another CBDC boom

On July 20, the G7 basically decided to cooperate on the issuance of CBDC, and planned to discuss it at the summit meeting (G7 summit) held in the United States from the end of August to the first ten days of September.

1.1 Attitudes of seven countries towards CBDC

Japan: Attitude change and active development. In February 2020, the deputy governor of the Bank of Japan also stated that Japan is not yet ready to launch a CBDC due to many problems that need to be resolved. However, on July 2, the Bank of Japan announced a summary report on CBDC technical issues, positioning it as a "settlement method that anyone can safely and reliably use anywhere at any time", and announced that it will start trialing its own CBDC in the near future - A digital yen to test its technical application and feasibility.

United States: It has been prepared for a long time and actively advocated. The United States has carried out research and development on CBDC very early. The Digital Dollar Project (Digital Dollar Project), jointly created by the Digital Dollar Foundation and the global consulting company Accenture, was released in May 2020. The first white paper on the digital dollar, and an advisory group was established with members from various fields, including economists, business leaders, technicians, lawyers, academics, and consumer rights advocates.

France: European pioneer, completed the first test. At the end of December 2019, the Governor of the Bank of France announced that France would soon start testing a CBDC. In March 2020, the Central Bank of France announced a call for digital currency experimental projects and completed the first test of the digital euro in May. In the test, it used internally developed blockchain technology to create digital securities representing the euro.

Germany: Expresses concerns, supports a digital euro. In October 2019, when Facebook released the Libra plan, the German Minister of Finance expressed concerns about the impact of digital currency on monetary sovereignty, and proposed to introduce a CBDC called "e-euro", which is to support the digital euro, and stated that the payment The system is beneficial both for the European financial center and its integration with the world financial system.

Italy: Official approval, support for the digital euro. Italy has become the latest country to propose a digital euro as European currency regulators take an increasing interest in CBDCs. In a June announcement, the Italian Banking Association (ABI) said it had approved the official guidelines for issuing a digital euro.

United Kingdom: Still hesitating, but studies have been carried out. Last week, Bailey, Governor of the Bank of England, said that the UK is still considering whether to create a UK CBDC. He also said that given the huge impact of CBDC on payment and social life, relevant research work has been carried out.

Canada: Years of research, starting to carry out. As one of the first countries to pay attention to CBDC, Canada has already begun to prepare to design its own CBDC. The Bank of Canada revealed its plans in a June 11 job announcement, saying it would "reshape the central bank system" and fundamentally rethink the nature of cash in Canada.

1.2 Progress of DC/EP in China

Compared with the G7 countries, the DC/EP of the People's Bank of China started earlier and progressed faster, and it is starting to cooperate with major Internet companies to explore landing scenarios.

In November 2019, the People's Bank of China announced that the DC/EP design work was basically completed. In April 2020, DC/EP was steadily advancing, and the top-level design, standard formulation, function research and development, joint debugging and testing were basically completed, and closed pilot tests were carried out in Shenzhen, Suzhou, Xiongan, Chengdu and other places. In addition to the four major state-owned commercial banks, China Mobile, China Telecom, and China Unicom, the three major telecom operators also participated in the pilot.

On July 8, the Digital Currency Research Institute of the People's Bank of China and Didi Chuxing formally reached a strategic cooperation agreement to jointly research and explore the scenario innovation and application of DC/EP in the field of smart travel. In addition, DC/EP will also cooperate with leading Internet companies such as Meituan and Bilibili to promote the integrated development of the digital economy and the real economy, and find more commercial landing scenarios for DC/EP.

Today's era is a digital era, technological innovation and the overall rise of the digital economy will greatly improve the operational efficiency of the industrial chain and promote the development of the entire economy and society. The in-depth integration and transformation of traditional industries by technologies such as blockchain, artificial intelligence, cloud computing, and the Internet of Things will lead us into a new era of digital economy.

2. Market: ETH skyrocketed, driving the market up

2.1 The overall market: the market is going up

2.1 The overall market: the market is going up