Publication Type

Journal Article

Version

publishedVersion

Publication Date

1-2022

Abstract

China is likely to be the first major economy to issue central bank digital currency (CBDC), the digital version of sovereign currency. China’s CBDC is also known as e-CNY, DC/EP, or digital yuan. ECNY has the potential to profoundly affect the international financial system and order. This article explores the following crucial issues from an international perspective: what are the core features of e-CNY? What is China’s approach to CBDC? What is the long-term sustainability of China’s CBDC approach? This article argues that the role of the state, the potential cross-border use of e-CNY, and China’s proactiveness in international governance are the core features of China’s CBDC. These features contribute to China’s CBDC approach, a possible selective reshaping of international financial order. The article adopts a multifactor analytical framework which explores major economic, political economy, legal and regulatory factors affecting the sustainability of China’s CBDC approach. This framework seeks to promote a holistic understanding of e-CNY’s evolution and its profound implications for international economic governance.

Keywords

China, digital currency, central bank, international financial system

Discipline

Asian Studies | Banking and Finance Law

Research Areas

Public International Law, Regional and Trade Law

Publication

University of Pennsylvania Asian Law Review

Volume

18

Issue

1

First Page

77

Last Page

134

ISSN

1943-8249

Copyright Owner and License

Publisher

Additional URL

https://scholarship.law.upenn.edu/alr/vol18/iss1/4/

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