The Digital Yuan and Cross-Border Payments
Author: Oriol Caudevilla, Henry M. Kim
Release Date: August 17, 2022
Co-led by two seasoned PhDs—one a fintech advisor, strategy consultant, and researcher based in Hong Kong/Singapore, and the other a professor at the Schulich School of Business in Toronto—this case study digs into the Chinese government’s approach to the research, development, testing, and launch of its digital yuan. The authors analyze China’s digital currency electronic payment in terms of the government’s joint venture with SWIFT, its Regional Comprehensive Economic Partnership, and the Belt and Road Initiative and in the context of the Communist Party of China’s political and economic goals. They cover the drivers of the technology, the People’s Bank of China’s careful testing of use cases, and the potential impact on Western businesses and other organizations conducting operations with and within China.