Year: 2025
Type: article
Abstract: This study explores the development and future trends of Central Bank Digital Currencies (CBDCs) by focusing on the comparative analysis of China’s Digital Currency Electronic Payment (DCEP) and the UK’s proposed digital pound. This paper uses case studies and literature reviews to look at how the two countries have different approaches to CBDC development, what makes them different, and what these differences mean for the global financial system as a whole. The findings reveal that China has achieved significant progress with its digital RMB, implementing extensive pilot projects across various scenarios such as retail payments, government subsidies, and cross-border transactions. This proactive approach reflects China's focus on domestic modernization and the internationalization of the yuan. In contrast, the UK has adopted a cautious strategy, emphasizing research, policy formulation, and risk assessments to address potential challenges related to financial stability and privacy before launching the digital pound. Key drivers of CBDC development include technological innovation (blockchain, cryptography), economic and social needs (financial inclusiveness, efficiency), and geopolitical considerations. The study concludes that CBDCs have the potential to transform global payment systems, improve financial inclusivity, and offer novel tools for monetary policy.
Author: Zhongmei Ma
Institution: Beijing Institute of Technology
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: hybrid
OpenAlex ID: W4409210707