The digital RMB is transitioning from M0 to M1, marking a strategic shift to enhance its use in high-frequency transactions and market mechanisms. This move is part of a broader effort to integrate the digital currency into everyday financial activities, reflecting a natural progression in its development rather than a reversal. While the technical aspects of this transition are manageable, the primary challenge lies in achieving coexistence with existing financial systems and leveraging network effects. The digital RMB continues to differentiate itself from stablecoins, with ambitions to reshape financial systems and international settlements. This evolution is expected to have significant implications for digital finance and the broader market landscape.