China’s Digital Currency Electronic Payment: A ‘negotiated currency’ perspective

Abstract

Around the world, interest in central bank digital currency (CBDC) is on the rise, and China’s digital currency electronic payment (DCEP) network is currently leading the way. This paper argues that despite its primarily domestic focus, DCEP has potential implications for the setting of standards for cross-border transactions in CBDC. Furthermore, the interoperability of Chinese private payment systems combined with the appeal of DCEP among countries looking to circumvent US sanctions could induce more countries to adopt it, thus improving the renminbi’s ‘negotiated’ status in the long run.