Digital Yuan (e-CNY): China’s Official Digital Currency

The Chinese Electronic Yuan, or the e-CNY, is a central bank digital currency (CBDC) sponsored by the People’s Bank of China (PBOC). The e-CNY is identical to the currency of China, the Renminbi (unit being yuan) and is a legal tender in the country. The PBOC has been actively testing the electronic yuan (e-CNY)—with a population of around 21 million participating in the tests as of June 2021. Moreover, China aims to extend the use of digital yuan worldwide and facilitate cross-border payments and tourism. This Commentary analyses the underlying technology of the digital yuan, its possible impact on the private technology giants involved in digital payments and China’s long-term strategy to internationalize it.