Digital yuan on the foreground: initial conclusions from the Chinese experiment

Abstract

Digital currencies issued by the central banks are a new phenomenon that the global financial system will face in the near future. They differ from electronic money, cryptocur- rencies based on blockchain, and private digital currencies, which will be issued by fintech corporations. The disadvantages of these types of future currency are uncontrolled issu- ance, limited liquidity, insufficient divisibility, dependence on the motives of issuers and energy consumption. The launch of digital currencies by central banks must overcome the described limitations, be centralized and guaranteed by the authorities. The