30 December 2020
China’s Central Bank Digital Currency: Implications for ASEAN
Executive Summary
The surge in online shopping during the pandemic has been accompanied by an equivalent growth in digital payments, including the use of new digital currencies that lie beyond the purview of central banks. This has raised concerns about the control of money supply and execution of monetary policy. Central banks responded with pilot studies of their own digital currencies (CBDCs). Among those at the forefront of these efforts is the People’s Bank of China, with the stated objective of internationalisation of the yuan. What will a digital yuan entail domestically for China, and what concerns and opportunities could it create for ASEAN?
Source: flickr
Executive Summary
The surge in online shopping during the pandemic has been accompanied by an equivalent growth in digital payments, including the use of new digital currencies that lie beyond the purview of central banks. This has raised concerns about the control of money supply and execution of monetary policy. Central banks responded with pilot studies of their own digital currencies (CBDCs). Among those at the forefront of these efforts is the People’s Bank of China, with the stated objective of internationalisation of the yuan. What will a digital yuan entail domestically for China, and what concerns and opportunities could it create for ASEAN?
Source: flickr
