The implications for China and the world of eCNY

In this Focus we detail what is known about China’s central bank digital currency and analyse its implications for China and the world. The Focus is fully updated to incorporate the latest publicly-available information, including the PBOC White Paper published on 16th July. One conclusion is that the launch of eCNY will do nothing to relax the constraints that have prevented the renminbi being widely adopted in international trade or as a reserve currency. Indeed, we argue that the People’s Bank will have to compel eCNY’s use for it even to take off within China.