Central Bank Digital Currency (CBDC) and Its Potential Impact on the Chinese Economy

Research Article
Open access

Central Bank Digital Currency (CBDC) and Its Potential Impact on the Chinese Economy

Haoguo Cheng 1*
  • 1 Southwestern University of Finance and Economics    
  • *corresponding author caoguo@swufe.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/33/20231646
AEMPS Vol.33
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-087-5
ISBN (Online): 978-1-83558-088-2

Abstract

Digital Gold Currency first appeared on the market in 1996, a digital currency designed based on gold quality. Still, the disadvantage of digital gold currency is that it has no cryptographic protection, and the security needs to be better. Nowadays, with the development of technology, more and more governments have started to study and use digital currencies, which benefits the economic market. This paper focuses on the central bank digital currencies issued in China, combining the current situation and characteristics of the Chinese economic market and the technical characteristics of CBDC, and analyzes the possible impact of CBDC issuance in China on the economic market. The analysis shows that CBDC will benefit the Chinese economic market by accelerating financial inclusion, eliminating the IT gap, reducing government spending, and providing the government with more tools to regulate the economy. The findings can offer strategic insights to the Chinese government or relevant researchers.

Keywords:

CBDC, Chinese economic market, digital currency

Cheng,H. (2023). Central Bank Digital Currency (CBDC) and Its Potential Impact on the Chinese Economy. Advances in Economics, Management and Political Sciences,33,121-127.
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References

[1]. Xu, W., Wang, W.: Digital yuan, international economic and trade ties, and macroeconomic volatility. Contemporary Finance and Economics 460(03):55-69 (2023).

[2]. Sang, X.: Exploring the application of digital RMB in the field of green finance. China Price 407(03), 63-66 (2023).

[3]. Christopher, S., Ma, T.: A study on the impact of digital RMB on RMB internationalization. Economic Issues 523(03), 23-29 (2023).

[4]. Wang, W.: Difficulties and points of emphasis in accelerating the orderly development of digital RMB. Economic Journal 447(02),122-128 (2023).

[5]. Wei, D., Peng, S., Zheng, S.: Strategies for commercial banks to use digital RMB intelligent contracts for business development. Financial Technology Times 31(02), 20-26 (2023).

[6]. Shi, Y., Guo, S.: Study on the mechanism of digital RMB enabling RMB internationalization. Journal of Xi’an University of Finance and Economics 36(01),14-28 (2023).

[7]. Yang, S.: International law concerns the evolution of the central bank’s digital currency system. Political Law Series 212(01), 51-64 (2023).

[8]. Ji, Y., Ma, X.: Progress of digital RMB research. Time Finance 828(02), 37-39+46 (2023).

[9]. Liu, W, Su, J.: Macro-control system with Chinese characteristics and macro-control policies - China’s macroeconomic outlook in 2018. Dynamics of Economics 685(03), 4-12 (2018).

[10]. Ali, H., Schinckus, C., Uddin, M., Pahlevansharif, S.: Asymmetric effects of economic policy uncertainty on Bitcoin’s hedging power. Studies in Economics and Finance 40(2), (2023).

Cite this article

Cheng,H. (2023). Central Bank Digital Currency (CBDC) and Its Potential Impact on the Chinese Economy. Advances in Economics, Management and Political Sciences,33,121-127.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-087-5(Print) / 978-1-83558-088-2(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.33
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Xu, W., Wang, W.: Digital yuan, international economic and trade ties, and macroeconomic volatility. Contemporary Finance and Economics 460(03):55-69 (2023).

[2]. Sang, X.: Exploring the application of digital RMB in the field of green finance. China Price 407(03), 63-66 (2023).

[3]. Christopher, S., Ma, T.: A study on the impact of digital RMB on RMB internationalization. Economic Issues 523(03), 23-29 (2023).

[4]. Wang, W.: Difficulties and points of emphasis in accelerating the orderly development of digital RMB. Economic Journal 447(02),122-128 (2023).

[5]. Wei, D., Peng, S., Zheng, S.: Strategies for commercial banks to use digital RMB intelligent contracts for business development. Financial Technology Times 31(02), 20-26 (2023).

[6]. Shi, Y., Guo, S.: Study on the mechanism of digital RMB enabling RMB internationalization. Journal of Xi’an University of Finance and Economics 36(01),14-28 (2023).

[7]. Yang, S.: International law concerns the evolution of the central bank’s digital currency system. Political Law Series 212(01), 51-64 (2023).

[8]. Ji, Y., Ma, X.: Progress of digital RMB research. Time Finance 828(02), 37-39+46 (2023).

[9]. Liu, W, Su, J.: Macro-control system with Chinese characteristics and macro-control policies - China’s macroeconomic outlook in 2018. Dynamics of Economics 685(03), 4-12 (2018).

[10]. Ali, H., Schinckus, C., Uddin, M., Pahlevansharif, S.: Asymmetric effects of economic policy uncertainty on Bitcoin’s hedging power. Studies in Economics and Finance 40(2), (2023).

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