Abstract:
This thesis delves into the realm of Central Bank Digital Currencies (CBDCs), with a specific focus on the Chinese CBDC, the E-CNY. The study primarily aims to provide an analytical review, combining both quantitative and qualitative data to assess if and how the pilot aligns with the theoretical objectives of a retail CBDC and the specific goals set by Chinese authorities.
The research begins with an introductory analysis of CBDCs, exploring potential impacts on stakeholders, including advantages, drawbacks, and the associated monetary policy and financial risks. A case study on E-CNY to follow, examining its theoretical purposes and practical implementation. The final chapter offers a detailed investigation of the first Chinese E-CNY pilot, tracing its evolution from 2021 to mid-2024. Research is conducted through in-depth analysis of cities’ Official Websites for publications and reports, either on quantities or on coverage and policies.
Findings reveal that the vision for retail E-CNY as a mainstream retail payment solution is a velleity at present. Is really difficult to root out habitudes and the resolution balance Alipay and WeChat duopoly is far from being reached. Strategies diverge between incentives for daily retail consumption and solutions for SME and Corporations. Some cities are exploring innovative applications of E-CNY that if successful could be expanded nationally or internationally.
Government should prioritize educational and awareness campaigns, implement tailored regulations for E-CNY as well as transparent rules on collection and sharing of personal information. Additionally, it needs to develop mid- to long- term strategies attract and retain users, rather than relying on short-term promotions and discounts that result in wallet openings without sustained engagement. Time and endeavor are the answer of a project that is still on its first wide steps.
