Research on the Issuance Design and Impact of China's Legal Digital Currency

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Thesis Overview

Key InformationDetails
Chinese Title我国法定数字货币的发行设想及影响研究 (Research on the Issuance Design and Impact of China's Legal Digital Currency)
AuthorOuyang Quan
DisciplineEconomics - Finance
DegreeBachelor of Economics
UniversityRenmin University of China
School/DepartmentSchool of Finance
MajorFinance
Primary AdvisorZhang Jie
Completion DateApril 13, 2020
Submission DateJune 4, 2020

Core Keywords

Abstract Summary

This thesis examines the feasibility of issuing a central bank digital currency (CBDC) in China, analyzing its potential economic impacts and associated risks. Key focus areas include:

👉 Explore the future of digital currencies

Research Methodology

  1. Comparative Analysis: Evaluates global digital currency models
  2. Path Design: Proposes a dual-tier system combining centralized issuance with distributed ledger technology
  3. Impact Assessment: Quantitative analysis of CBDC's effects on:

    • Payment systems
    • Commercial banking stability
    • Cross-border trade efficiency

Key Findings

BenefitRiskMitigation Strategy
Lower transaction costsBank run potentialTiered interest rates
Improved monetary policyCybersecurity threatsQuantum-resistant encryption
RMB internationalizationRegulatory gapsAdaptive legal frameworks

FAQs

1. How does CBDC differ from cryptocurrencies like Bitcoin?

CBDCs are state-backed legal tender with centralized governance, unlike decentralized cryptocurrencies.

2. What are the main technological challenges?

Scalability, interoperability with legacy systems, and ensuring 24/7 operational resilience.

3. Could CBDC replace cash entirely?

Not immediately – phased implementation ensures financial inclusion for non-digital populations.

👉 Discover how digital currencies reshape finance

Conclusion

This research provides a comprehensive roadmap for China's CBDC rollout, balancing innovation with systemic stability. Future studies should monitor pilot program outcomes and international regulatory developments.