China Meets Digital Currency: E-CNY and Its Implications for Businesses
The Law Gazette (November 2021 issue, Forthcoming)
15 Pages Posted: 18 Nov 2021 Last revised: 10 Mar 2022
Date Written: November 12, 2021
China is likely to be the first major economy to issue central bank digital currency (CBDC). China’s CBDC, e-CNY, may lead to a new ecosystem that would profoundly affect business, product offerings and business practice. E-CNY is likely to affect both local and international businesses, particularly those with a presence in China or those who commonly transact with Chinese actors. There is also the possibility of e-CNY use outside of China. If China’s CBDC practice and standards affect international practice (such as through standard making), e-CNY has the potential to affect the broader businesses community. This paper discusses the following crucial questions: how to understand e-CNY? What does e-CNY mean for local and international businesses? Businesses need to adequately prepare for a new business landscape with e-CNY that is not only a currency but also generates large amounts of data.
Keywords: CBDC, e-CNY, DCEP, digital currency, businesses
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