Publication Type

Journal Article

Version

publishedVersion

Publication Date

1-2021

Abstract

Digital currencies are reshaping the financial, monetary, and regulatory landscape. There are at least two routes for the development of digital currencies. One is global stablecoins (e.g., Diem that is previously named Libra), issued by private players, while the other is central bank digital currency (CBDC) issued by central banks, with China’s CBDC as an example and possibly the first CBDC that will be issued by a major economy. Albeit in their rudimentary stages, global stablecoins and China’s CBDC are likely to disrupt the current financial system and challenge existing financial regulation. This article examines two crucial but under-explored questions: what are the approaches of global stablecoins and China’s CBDC, and their impact on financial regulation? Based on comparative analysis, this Article argues that global stablecoins and China’s CBDC would have impacts on macroeconomic (in)stability, the regulation of global stablecoin, and the international monetary order.

Keywords

China, digital currency, international financial system

Discipline

Asian Studies | Banking and Finance Law

Research Areas

Corporate, Finance and Securities Law

Publication

Review of Banking and Financial Law

Volume

41

Issue

1

First Page

255

Last Page

312

Publisher

Boston University School of Law

Copyright Owner and License

Authors

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