Implementing the digital yuan in global trade payments : A strategic framework for central bank digital currency integration
Abstract
China’s digital yuan (e-CNY) is developing into a central bank digital currency with the capacity to transform inter-regional payment mechanisms as well as settlement processes. This study presents a three-tier strategic framework, emphasising e-CNY’s potential to streamline payments, reduce reliance on the US dollar and promote effective participation in transnational trade systems. This framework, covering technical infrastructure, regulatory governance and market alignment, is validated by the China–UAE trade case and the mBridge pilot project. Research indicates that while e-CNY adoption has gained noteworthy prominence in Chinese regional trade networks, its acceptance at the global level remains challenging due to rising operational and regulatory concerns. The findings outline that e-CNY demonstrates strong capabilities in cost reduction and real-time settlement, yet it is facing challenges related to transparency, privacy safeguards and differences in transnational governance frameworks. The study offers practical implications for policymakers and regulatory authorities in comprehending the digital currency-enabled international trade finance structures. The proposed policy-oriented framework guides the effective integration of future digital currencies in transnational trade practices. The outcomes suggest that regulatory harmonisation and bilateral coordination on CBDC interoperability are crucial for simplifying e-CNY’s trade compliance. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
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Author's Biography
Gagandeep Singh is an associate professor at Mittal School of Business at Lovely Professional University. He holds a PhD in corporate governance, specialising in finance and income tax, with a Company Secretary qualification from the Institute of Company Secretaries of India. He mentors students in financial strategy and tax compliance, contributing to curriculum development and industry-aligned research. His publications focus on governance reforms and fiscal policy, enhancing academic and corporate discourse while fostering experiential learning.
Avtar Singh is an associate professor of marketing at the Mittal School of Business at Lovely Professional University. With a PhD in sports marketing, an MBA and over 13 years of academic and industry experience, he specialises in sports marketing, social media marketing, finance, artificial intelligence, sustainability and digital marketing. His work has been published in various reputed journals and books, contributing significantly to research, scholarship and the advancement of management practices.
Jasdeep Singh Walia is an assistant professor at the Mittal School of Business at Lovely Professional University. He has a PhD in sustainable education, specialising in accounting and income tax. He has completed a company secretary degree from ICSI. His pedagogical innovation integrates sustainability into finance education, guiding students in ethical accounting practices and tax frameworks. His research explores environmental, social and governance standards-compliant reporting to promote eco-conscious financial literacy, and he supports curriculum reforms aligning education with global sustainable development goals.
