e-CNY (Digital Yuan)

The e-CNY, or digital yuan, is China's retail Central Bank Digital Currency issued by the People's Bank of China, fully integrated with domestic banking and payment systems and now expanding internationally through a cross-border CBDC operations center in Shanghai connecting to global payment infrastructure.

The e-CNY represents world's most advanced CBDC deployment, with widespread pilot programs across major Chinese cities since 2020, integration with Alipay and WeChat Pay enabling seamless adoption, offline payment capability through NFC technology, and programmable features allowing conditional payments, smart contracts, and targeted stimulus distribution. The PBOC uses two-tier distribution model where central bank issues e-CNY to commercial banks who distribute to end users, preserving role of banking system while maintaining central bank control over monetary policy.

Strategic objectives include reducing dependence on U.S. dollar-dominated payment systems, providing alternative to private payment platforms whose data and control rest with technology companies, enabling real-time monetary policy implementation through programmable stimulus and negative interest rates, facilitating yuan internationalization through cross-border CBDC corridors, and strengthening government visibility into economic activity through transaction data. International expansion focuses on Belt and Road Initiative countries, BRICS payment systems bypassing SWIFT, and integration with wholesale CBDC projects like BIS mBridge for cross-border settlements. Concerns include surveillance capabilities enabling government tracking of all transactions, potential for politically-motivated account freezes or payment restrictions, exclusion of users who lack digital literacy or devices, and geopolitical implications of Chinese-controlled payment infrastructure spreading globally.