THE FLIPSIDE OF CHINA’S CENTRAL BANK DIGITAL CURRENCY (CBDC)

On 14 October, the Australian Strategic Policy Institute published this Policy Brief saying that China’s central bank digital currency, known as ‘DC/EP’ (Digital Currency / Electronic Payment), is rapidly progressing and, if successful, would have major international implications that have not yet been widely considered by policymakers.  DC/EP would have ramifications for governments, investors, and companies, including China’s own tech champions.  The article notes that a survey published by the Bank for International Settlements in January 2020 found that, out of 66 central banks, 80% were engaged in the research, experimentation or development of a CBDC.  The brief is organised as follows –

  1. Section 1 is a general overview of digital currencies;
  2. Section 2 focuses on the policy drivers behind DC/EP;
  3. Section 3 examines DC/EP’s architecture based on patents in order to assess the surveillance capabilities it would embed;
  4. Section 4 describes the institutional ecosystem behind DC/EP;
  5. Section 5 looks at how DC/EP would affect domestic digital payment systems Alipay and WeChat pay; and
  6. Section 6 looks at the implications DC/EP could have for global financial governance.

https://www.aspi.org.au/report/flipside-chinas-central-bank-digital-currency

I had omitted the following link (as it did not seem to generate much interest!), but it seemed time to add it again and say that, if you would like to make a (polite) gesture and help me with my removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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