Prospects for the Development of Digital CNY

Abstract

After decades of development, digital currency has been recognized worldwide. But the current private cryptocurrencies in the market, including stable coins, don’t have the potential to become a unified currency. In this context, central banks of global countries have also started research on currency digitization. The People's Bank of China started research on the digital CNY in 2014, which will help the CNY escape the control of the USD and help it dominate the world currency field. After nearly ten years of development, the feasibility and development path of digital renminbi have basically formed a definite idea. However, the development prospects of the digital CNY still face issues related to the degree and method of Block Chain integration, the impact on sovereign currencies, and decentralization. This article will give a theoretical basis and policy suggestions on the development feasibility and development prospects of the digital CNY through a brief introduction and function analysis.