Subject. This article examines the key characteristics of the digital currency of the People's Bank of China. Objectives. The article aims to analyze the advantages of using the digital national currency in China, taking into account the practical experience of other countries, as well as assess the prospects for the internationalization of the yuan and changes in the scheme of international settlements in terms of a possible weakening of the US dollar. Methods. For the study, I used the systems and comparative analyses. Results. The article describes the key advantages of the cyber yuan and substantiates the possibility of applying the successful methodological and practical developments of China by other countries, including Russia, when implementing their own digital currency projects. Conclusions. The article recognizes the prospect of universal internationalization of the yuan and the destruction of the monopoly of the US currency with the help of the digital yuan conditionally possible and very distant.
Keywords: digital currency, national currency, digital yuan, internationalization, China
References:
Böhme R., Christin N., Edelman B., Moore T. Bitcoin: Economics, Technology, and Governance. Journal of Economic Perspectives, 2015, vol. 29, no. 2, pp. 213–238. URL: Link
Fernández-Villaverde J., Sanches D., Schilling L., Uhlig H. Central Bank Digital Currency: Central Banking for All? Review of Economic Dynamics, 2021, vol. 41, pp. 225–242. URL: Link
Ivanushchenko A.V., Plyusnina E.A., Yatsyk A.A. [Digitalization of the national currency: world and domestic experience]. Ekonomika. Pravo. Innovatsii = Economics. Law. Innovation, 2021, no. 2., pp. 4–11. (In Russ.) URL: Link
Shelepov A.V. [Regulating global stablecoins and central bank digital currencies in selected G20 countries]. Vestnik mezhdunarodnykh organizatsii = International Organisations Research Journal, 2021, vol. 16, no. 4, pp. 1–34. (In Russ.) URL: Link
Garratt R.J., van Oordt M.R.C. Privacy as a Public Good: A Case for Electronic Cash. Journal of Political Economy, 2021, vol. 129, no. 7, pp. 2157–2180. URL: Link
Acquisti A., Taylor C., Wagman L. The Economics of Privacy. Journal of Economic Literature, 2016, vol. 54, iss. 2, pp. 442–492. URL: Link
Kochergin D.A., Yangirova A.I. [Central bank digital currencies: key characteristics and directions of influence on monetary and credit and payment systems]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2019, vol. 23, no. 4, pp. 80–98. (In Russ.) URL: Link
Larina O.I., Akimov O.M. [Digital money at the present stage: key risks and development direction]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2020, vol. 24, no. 4, pp. 18–30. (In Russ.) URL: Link
Petrov V.Yu., Bortsova A.V. [Cryptocurrency as the newest form of money in modern economy]. Fundamental'nye issledovaniya = Fundamental Research, 2018, no. 6, pp. 188–192. URL: Link (In Russ.)
Kahn C.M., Roberds W. Why Pay? An Introduction to Payments Economics. Journal of Financial Intermediation, 2009, vol. 18, iss. 1, pp. 1–23. URL: Link
Kuvaeva Yu.V., Chudinovskikh M.V., Sedunova E.A. [Designing and using central bank digital currency: China's experience]. Finansy i kredit = Finance and Credit, 2021, vol. 27, iss. 10, pp. 2349–2364. (In Russ.) URL: Link
Andolfatto D. Assessing the Impact of Central Bank Digital Currency on Private Banks. The Economic Journal, 2021, vol. 131, iss. 634, pp. 525–540. URL: Link
Benhabib J., Schmitt-Grohé S., Uribe M. Monetary Policy and Multiple Equilibria. The American Economic Review, 2001, vol. 91, no. 1, pp. 167–186. URL: Link
Tobias A., Mancini-Griffoli T. The Rise of Digital Money. Annual Review of Financial Economics, 2021, vol. 13, pp. 57–77. URL: Link
Schilling L., Uhlig H. Some Simple Bitcoin Economics. Journal of Monetary Economics, 2019, vol. 106, pp. 16–26. URL: Link