Digital currency is an unregulated, digital form of currency, typically issued and managed by developers and accepted and used by members of a specific virtual community. The European Banking Authority defines virtual currency as a digital representation of value, not issued by a central bank or authority, and not pegged to fiat currency, but accepted by the public, thus serving as a means of payment that can be transferred, stored, or traded electronically.
In recent years, excessive issuance of banknotes has led to intensified inflation, frequent safety crises in third-party payments, and with the gradual maturity of blockchain technology, decentralized digital currencies such as Bitcoin, Ethereum, and Ripple have emerged. Digital currencies have characteristics and advantages such as low transaction costs, fast transaction speeds, high anonymity, and a fixed amount of currency.
At the same time, the use scenarios of digital currency are becoming increasingly rich, leading to a continuous increase in user acceptance. Currently, the use of digital currency has covered various scenarios such as shopping consumption, salary payments, transportation, tourism, takeaway payments, and tuition payments, with continuously expanding landing scenarios resulting in a broader consumer base.
Overall, although the user group of digital currency still occupies a small portion of the total population, the number of users is constantly growing, with 10 countries worldwide already having a usage rate exceeding 10%.
Today, the A-share digital currency sector continued to rise in the afternoon, with nearly 10 stocks including Shensi Electronics and Tianyuan Dike hitting the daily limit, while Guangdian Yuntong and Yuxin Technology followed suit.
From the news perspective, the release of an important article (continuously strengthening, optimizing, and expanding China's digital economy) indicates that developing the digital economy is a strategic choice to seize new opportunities in the new round of technological revolution and industrial transformation. Healthy development of the digital economy is conducive to promoting the construction of a new development pattern, the modernization of the economic system, and the establishment of new national competitive advantages.
Overview of 8 stocks in the digital currency sector that are expected to double in the future
Xiongdi Technology
Company Highlights: Supplier of ICAO machine-readable travel documents for the United Nations
The company's main business covers fields such as security documents, smart governance, and smart transportation. The company’s main products include intelligent certificate production and issuance equipment, intelligent certificate acceptance application equipment, and other auxiliary equipment and products.
Digital RMB dual offline payment is one of the new payment methods, and the clearing and settlement system supports digital RMB dual offline payment scenarios; the company has conducted relevant tests, but actual application is related to the national ZC and standards.
Shensi Electronics
Company Highlights: Focused on the identity recognition field, with a leading industry advantage
The company has been tracking the progress of digital currency and has invested early in the research and development and market preparation of supporting equipment; based on the upgrading strategy of 'from identity recognition to intelligent cognition, from deep cultivation in the industry to cross-industry integration', the company continues to focus on 'industry real-name system and industry informatization' as the main service direction, providing identity authentication, industry deepening, and artificial intelligence as three-tiered solutions as its main business.
The company focuses on offline identity authentication business mainly using window counter verification machines and is developing online Internet identity authentication business.
New Kaipu
Company Highlights: Comprehensive service provider of smart campus and smart government and enterprise software products
The company undertakes the country's first education industry application pilot—the digital RMB pilot project at Suzhou Experimental School of Nanjing Normal University; relying on its software research institute established in Shanghai, the company conducts preliminary research on blockchain technology, and the results will be applied to the company’s talent services and university credit system; in the future, the company will rely on this technology to scientifically plan products to meet the constantly changing and upgrading requirements of customers, preparing for the company's next round of growth.
The company increased its investment in Shanghai Xuantu Information Technology Co., Ltd., holding 51% of its equity, which helps the company leverage Xuantu's VR technology and experience, integrate it with the company's solutions in various scenarios, enhance the construction of virtual reality laboratories and course resources, and provide customized experimental, training, and research solutions for universities, fully supporting virtual simulation/reality teaching and research needs, creating a new generation of competitive differentiated products.
Tianyuan Dike
Company Highlights: A leading provider of industrial cloud BOSS and big data comprehensive solutions in China
The company primarily serves banks and insurance companies, providing software sales, software development, and services through bidding or framework agreements; the company’s subsidiary Weienbeit has deployed a technical R&D team in pilot areas for digital currency, actively participating in the development of related application scenarios.
In the field of public safety, the company focuses on self-developed public security big data police cloud platform solutions, traffic big data solutions, and entry-exit management solutions; the company's (Dian) products mainly revolve around the full lifecycle protection of data security, ensuring the safety, early warning, and traceability of various data from generation to storage, use, transmission, exchange, and destruction; the company's security products have also passed relevant certifications from the Ministry of Public Security and the Cryptography Bureau; the company applies blockchain technology in intelligent risk control in financial credit to accelerate efficiency for financial institutions' complex financial operations.
Advanced Digital Communication
Company Highlights: One of the few providers offering IT infrastructure construction and operation services to all four major banks in China
The company's business related to legal digital currency involves the processing of legal digital currency bank-end business. The company builds legal digital currency applications based on its own product Starring V6 under the payment application framework. Currently, the company’s solution development has been completed and is in the market promotion stage.
The company has been focusing on the development of cloud computing-related technologies for many years and has made long-term and continuous investments in cloud computing-related software and solution fields. Currently, the company’s main business areas revolve around cloud computing-related products and solutions, including: cloud data center construction and operation, financial transaction cloud, big data-related solutions, etc.
Cuiwei Co., Ltd.
Company Highlights: A leading commercial enterprise in Haidian District, Beijing, and a well-known commercial brand in Beijing.
The company’s annual report shows that its wholly-owned subsidiary Haike Rongtong has actively participated in signing cooperation agreements with designated operating banks of the central bank's digital currency research institute, conducting system docking, and promoting the system construction for accepting digital RMB; the company plans to acquire Haike Rongtong to seize market opportunities, in addition to deploying smart POS, it has launched emerging payment tools that are compatible with QR code scanning payments, such as 'Haima' and scanning boxes, which has brought incremental transaction scale and revenue to Haike Rongtong.
Chutianlong
Company Highlights: One of the largest providers of smart cards and comprehensive security solutions in China
From the news perspective, the digital RMB App has been upgraded and updated, and the digital RMB wallet of WeBank (WeChat Pay) has been launched, with Tencent starting to provide digital RMB services to users.
The company has made certain technical accumulations around digital RMB hardware wallets and related products and systems, achieving a small amount of shipments of digital RMB hardware wallet products and providing relevant technical services to bank customers; the company has rich technical accumulations in various forms of digital RMB hardware wallets and has accumulated certain practical experience in the development of relevant digital RMB products by participating in pilot projects in several cities.
The company is currently actively preparing digital RMB hardware wallets and related products for the Beijing Winter Olympics.
Yuyin Co., Ltd.
Company Highlights: Leading enterprise in the ATM equipment industry in Guangdong Province
In the field of digital currency, the company focuses on the progress of central bank digital currency, has established a digital currency research center, and conducts research on the application of digital currency transaction processing on intelligent devices, leveraging its advantages in encryption and decryption, biometric identification, and data secure transmission to develop digital currency software wallets and hardware wallets.
The company organizes a team to conduct research on blockchain business, hoping to use blockchain technology to explore the establishment of an Internet-based 'chain service' system, improving the safety and efficiency of the company's products in risk control, customer experience, business transactions, and security operations through the integration of service channels and the use of big data and artificial intelligence technology.
The company collaborates closely with leading enterprises in the industry to develop a set of secure applications based on the domestic Linux operating system, which has been successfully launched for trial use; this operating system supports cross-platform and various application scenarios and business models based on open source, meeting the bank's continuous 7*24 hours operational needs throughout the year.
China is focusing on the development of the digital economy industry, with the digital economy market size expected to reach 78.88 trillion yuan by 2025, accounting for 55.34% of GDP.
The replacement of cash by digital RMB can effectively reduce costs and increase efficiency; at the same time, the promotion of digital RMB can further enhance the payment cap, leading to the upgrade cycle of POS machines and ATMs. In the future, the domestic market will continue to explore B/C payment scenarios, continuously develop G-end scenarios, enrich scenarios, promote legislative guarantees, and create a digital ecosystem.
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