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Developments and Implications of Central Bank Digital Currency: The Case of China e‐CNY

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  • Jianguo Xu

Abstract

China has been both active and cautious in developing a central bank digital currency (CBDC). China CBDC has been in research and development since 2014. The process speeded up in 2019. It is currently at the stage of expanding real field experiments. Residents in 11 areas can open e‐wallets linked to nine major banks. It is centralized digital cash designed to gradually replace traditional paper cash and coins (M0). It will be supported by the traditional double‐layer banking system. It is not blockchain based at issuance but is technology neutral in distribution. Internet and technology companies may join commercial banks in distributing the China CBDC. In the short run, the China CBDC will help improve domestic financial monitoring and policy implementation. In the long run, it may play a role in the RMB's internationalization or even the international monetary system's evolution.

Suggested Citation

  • Jianguo Xu, 2022. "Developments and Implications of Central Bank Digital Currency: The Case of China e‐CNY," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 235-250, July.
    • Handle: RePEc:bla:asiapr:v:17:y:2022:i:2:p:235-250
    DOI: 10.1111/aepr.12396
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    References listed on IDEAS

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    Cited by:

    1. Muchen Li & Shining Guo & Qianyi Zhang, 2025. "The Impact of Central Bank Digital Currency on Rural Revitalization: An Empirical Analysis of Data from 284 Cities in China," SAGE Open, , vol. 15(3), pages 21582440251, September.
    2. António Portugal Duarte & Fátima Sol Murta & Nuno Baetas Silva, 2025. "Will the euro replace the U.S. dollar as the leading international currency? A volatility analysis," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 15(1), pages 1-27, March.
    3. Huizheng Liu & Muhammad Afaq Haider Jafri & Shuo Xu & Muhammad Farrukh Shahzad, 2025. "The impact of artificial intelligence on consumers’ willingness to use CBDCs: evidence from the Chinese banking sector," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-16, December.
    4. Joerg Mayer, 2024. "De-dollarization: the global payment infrastructure and wholesale central bank digital currencies," FMM Working Paper 102-2024, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    5. Medina Ayta Mohammed & Carmen De-Pablos-Heredero & José Luis Montes Botella, 2024. "The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation," FinTech, MDPI, vol. 3(1), pages 1-16, February.
    6. Le, Thai Hong & Luu, Hiep Ngoc & Do, Dinh Dinh & Nguyen, Trung-Anh & Pham, Toan Canh, 2025. "On the connectedness between the uncertainty of central bank digital currency adoption and stablecoins," The North American Journal of Economics and Finance, Elsevier, vol. 79(C).
    7. Zhenyong Li & Jianxing Li, 2025. "Evaluating the Wallet-Based DCEP: Regulatory Innovations and Implementation Strategies in China’s Retail CBDC," Laws, MDPI, vol. 14(3), pages 1-26, May.
    8. Zeng, Linshan & Young, Martin R. & Hao, Wei, 2025. "Currency digitalization: The supply, demand, and infrastructure aspects of china's central bank digital currency," Finance Research Letters, Elsevier, vol. 85(PB).
    9. Megha Garg & Shruti Malik & Parveen Kumar, 2025. "Decoding challenges in central bank digital currency implementation in India: a TISM-MICMAC approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(6), pages 5575-5602, December.
    10. Yiping Huang & Takatoshi Ito & Kazumasa Iwata & Colin McKenzie & Shujiro Urata, 2022. "Digital Finance in Asia: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 163-182, July.
    11. Eswar Prasad, 2022. "Comment on “Developments and Implications of Central Bank Digital Currency: The Case of China e‐CNY”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 251-252, July.
    12. Zhang, Runze & Li, Zhijun & Xiao, Chunqu & You, Jiwang, 2023. "New engines of economic growth: How digital currencies lead the way to growth in the era of digital economy," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1597-1617.
    13. Yousaf, Imran & Goodell, John W., 2023. "Linkages between CBDC and cryptocurrency uncertainties, and digital payment stocks," Finance Research Letters, Elsevier, vol. 54(C).

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