Digital Currencies of Central Banks: Prospects and Challenges in the New Economy (Practical Experience of China)

The aim of the study is to analyze both the prerequisites and the consequences of the introduction of digital currencies, which influenced the revolutionary change in the global financial landscape. To achieve these goals, the authors have put forward the following tasks: using the example of cyberyuan in China to analyze modern practices of introducing digital national currencies, consider the key differences between a central bank digital currency (CBDC) and cash and cryptocurrencies, study the causes of potential difficulties in the commissioning of central digital currencies, which led to the closure of CBDC projects in a number of countries. Assessing the experience of the global introduction of CBDCs into circulation, the authors examine the factors that directly affect the choice of design of digital currencies. The authors emphasize the possibility of achieving such urgent tasks with the help of digital currencies of central banks as overcoming the consequences of the COVID-19 pandemic and the global stagnation of financial markets in 2020–2021, combating the consequences of sanction restrictive measures against the Chinese financial markets, curbing the dominant role of the American dollar and reducing financial costs of the participants.

The main conclusions of the article include the awareness of the need to establish the legal status of digital central currencies, increase financial awareness of potential and real users of digital currencies, ensure technical and regulatory compatibility of digital currencies of central banks, widespread use of advanced distributed ledger technologies to protect data confidentiality and ensure strict authentication of payments.

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