Work

Architecting Inclusion in e-CNY: Settlement-Upon-Payment, Domestic Interoperability, and User Control

Year: 2025

Type: reference-entry

Abstract: This entry explains how China’s e-CNY, the retail form of its Central Bank Digital Currency, translates three design choices into improved access, affordability, and reliability: (1) enabling wallet-to-wallet payments on the CBDC ledger with settlement upon payment (SUP); (2) ensuring seamless integration at checkout with existing QR-code systems and popular payment apps; and (3) providing users with practical control through credentials stored on their devices and managed by licensed operators. With payment finality clarified in law and a two-tier structure in place, offline payments can shift to a hybrid architecture. It blends account- and token-based functionality across online and offline settings, incorporates tiered identity verification, and supports low-cost solutions. In essence, e-CNY demonstrates that strategic decisions regarding settlement, interoperability, and user control can expand financial inclusion while maintaining robust regulatory safeguards.

Source: Encyclopedia

DOI: 10.3390/encyclopedia5040179

Authors: Zhenyong Li, Jianxing Li

Institutions: East China University of Political Science and Law, Shanghai University of Political Science and Law

Language: English

Topic: Blockchain Technology Applications and Security

Subfield: Information Systems

Field: Computer Science

Domain: Physical Sciences

SDG: Reduced inequalities

Open Access status: gold

Estimated APC paid: $1,207