Central Bank Digital Currency: Impacts and Challenges

HUANG Shuang-shuang; HUANG Zhi-gang; WANG Shan

Volume 36 Issue 5

Nov. 2021

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HUANG Shuang-shuang, HUANG Zhi-gang, WANG Shan. Central Bank Digital Currency: Impacts and Challenges[J]. Journal of Guangdong University of Finance & Economics, 2021, 36(5): 4-15.

Citation:

HUANG Shuang-shuang, HUANG Zhi-gang, WANG Shan. Central Bank Digital Currency: Impacts and Challenges[J]. Journal of Guangdong University of Finance & Economics, 2021, 36(5): 4-15.

HUANG Shuang-shuang, HUANG Zhi-gang, WANG Shan. Central Bank Digital Currency: Impacts and Challenges[J]. Journal of Guangdong University of Finance & Economics, 2021, 36(5): 4-15.

Citation:

HUANG Shuang-shuang, HUANG Zhi-gang, WANG Shan. Central Bank Digital Currency: Impacts and Challenges[J]. Journal of Guangdong University of Finance & Economics, 2021, 36(5): 4-15.

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Central Bank Digital Currency: Impacts and Challenges

1.
School of Economics and Management, Fuzhou University, Fuzhou 350108
2.
Bank of China Fujian Branch, Fuzhou 350003, China

Received Date: 2021-06-23
Available Online: 2021-11-11
Publish Date: 2021-09-28

Abstract

Abstract

The issuance of digital currency by The People's Bank of China (Central Bank) is an important reform of the modern monetary and financial system, but the research on Central Bank digital currency involves a very complex content and system. The basic concept and connotation of Central Bank digital currency as well as its impact on economy and finance are sorted out, and the contribution of Central Bank digital currency to optimizing payment system and enriching monetary policy is discussed, as well as the challenges brought to financial stability. The research finds that the emergence and development of Central Bank digital currency depends on the rise of information technology, and its economic benefits will be higher than those of traditional legal tender; the emergence of Central Bank digital currency is an important breakthrough to improve payment issues; issuing Central Bank digital currency has an optimizing effect on retail, wholesale and cross-border payments; it can reshape the payment system, realize tokenized transactions and secure information sharing. The digital currency is possible in the future to become one of the main payment tools. Since the Central Bank digital currency has a greater impact on monetary policy, and relevant research still under exploration, it is difficult to draw clear or quantitative robust conclusions. The design of the Central Bank digital currency will affect all aspects of the financial structure and economy. This research has important enlightenment for the theoretical and practical development of China's Central Bank digital currency.
- Central Bank digital currency,
- digital currency,
- payment instrument,
- payment system,
- monetary policy,
- monetary economy,
- financial stability,
- financial regulation

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References(56)

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