External Aspects of the Digital Yuan

Abstract

The article examines the external aspects of the implementation of the digital yuan, namely: what practical steps the Chinese government is taking to expand the use of the digital yuan in foreign trade transactions, and how such measures are substantiated by the legislation. In addition, the scientific discourse regarding the potential of the digital yuan to reshape the global financial system is being analyzed. Currently, scholars both in and outside China are discussing how the development of the digital yuan will affect the transformation of the international trade. Do the actual steps taken by the Chinese government match their vision? How systematically and consistently are changes being implemented? Which tools are being used to promote the digital yuan in bilateral and multilateral formats? To answer these and other research questions, the article analyzes the most important policy document on the digital yuan — the White Paper ‘Progress of Research & Development of E-CNY in China’, and identifies the main directions for the development of the digital yuan in accordance with this document. In addition, references to the use of the digital yuan in the scientific literature and media were studied and summarized. The relevance of this article is due to the fact that in the context of growing sanctions pressure, the failure of Western-centric payment systems in terms of maintaining the normal functioning of global trade, the study of the use of digital currencies of central banks in foreign trade transactions in general, and the digital yuan — as the most advanced central bank digital currency — in particular, is extremely in demand.

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