A new industry alliance was founded on July 24, during the 5th Digital China Summit in Fuzhou city, Fujian province, to support and promote the use of digital RMB, or E-CNY.

Wang Jing, chairwoman of Newland Digital Technology Co. Ltd. and a member of the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC), gives a speech at a sub-forum of the 5th Digital China Summit held in Fuzhou city, Fujian province, July 24, 2022. [Photo courtesy of Newland Digital Technology]

The E-CNY Industry Alliance (ECIA) was initiated by Newland Digital Technology Co. Ltd. and Huawei and comprises 37 member entities, including large high-tech giants, banks, colleges, and industry associations. Wang Jing, chairwoman of Newland Digital Technology and a member of the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC), was elected as the first director-general of the alliance.

The alliance aims to connect with the Digital China initiative, promote the innovative development of a new digital RMB framework and infrastructure, and promote the development of the digital RMB industry, joint technology research, and the sharing of technology and knowledge resources.

The digital RMB itself is an unprecedented innovation, which also marks a solid step in building national-level digitalization, "digital China," and a national governance system in the fields of the economy, finance, and fiscal matters, said Wang Jing in her speech at a Digital China Summit's sub-forum, sponsored by the Fujian provincial government and home to the launch of the ECIA.

She pointed out that "digital China" is not only a digital technology, digital project, or the framework for a new digital economy – in fact, the key lies in governance.

"When governance philosophy is implemented through digital technology, it is a reform of the governance system. Promoting the realization of governance goals through digital thinking is the improvement of governance capabilities. Digital China is a new engine and a new starting point for governance modernization," the newly elected ECIA director-general said, believing this has laid the main tone for the birth and development of the digital RMB, making the future governance system more scientific, more reasonable, more innovative and forward-looking, and more internationally competitive so that people can enjoy greater dividends from a "digital China."

Wang Jing stressed that the birth of the digital RMB is undoubtedly another milestone in terms of currency development, and the significance and far-reaching impacts are self-evident. Therefore, the establishment of the ECIA is occurring at the right time and is a joint innovation of "government, industry, finance, education, research, and the user" in the true sense, forming a full-dimensional linkage mechanism and ecology and promoting the popularization, application, innovation, and development of digital RMB.

The first three editions of the Digital China Summit focused on the issue of digital identity for people, while the 4th and 5th editions highlighted the digital currency. "In the future, when digital identity and digital RMB are combined, together with various digital scenarios, it will definitely bring a newer and more convenient lifestyle to ordinary people," Wang predicted.

Members of the ECIA have pledged to work together to promote the relevant organizations and institutions to carry out joint financial innovation in an all-around and three-dimensional manner based on the development needs of the digital RMB. They will focus on social governance, integrate various human resources, form think tanks, and push research policies, jurisprudence, laws, and regulations. At the same time, the alliance will also innovate around the needs of the people and social pain points so that the people have a sense of gain, security, and happiness.

This year, China has expanded its pilot areas for the digital RMB from "10+1" areas to 23 areas in 15 provinces so far. As of May 31, these pilot areas had witnessed a total of around 264 million digital yuan in transactions with a value of about 83 billion yuan ($12.28 billion). Business entities that have opened digital RMB services number 4.57 million nationwide.

At present, the digital RMB is available for use in many scenarios, both online and offline, such as purchasing electricity and shopping and services, including medical care, education, travel, paying taxes, and borrowing loans.