Designing and using central bank digital currency: China's experience

Abstract

Subject. This article examines the main characteristics of a central bank digital currency and describes the procedure for designing and using the digital yuan in China. Objectives. The article aims to consider the positions of the leading countries on the need to introduce a digital currency, its risks and development prospects, and analyze the feasibility and main provisions for the introduction of the digital yuan into monetary circulation. Methods. For the study, we used economic and statistical analyses, and comparison. The National Bank of China statistics were used when preparing and conducting the study. Results. The article presents an analysis of the experiment on the implementation of settlements using the digital yuan and determines the most significant difference between the digital yuan and the cryptocurrency. Conclusions. China is the first country to launch a pilot test of the digital yuan, which has so far been successful. Despite the many advantages, the internationalization of the yuan looks possible in the long term only. The presented data can be used in the development and conduct of an experiment on the introduction of the digital ruble in the Russian Federation.