Problems and Countermeasures in the Development of Central Bank Digital Currency (CBDC): A Case of China

Abstract

Against the backdrop of the global digital currency revolution, China’s central bank digital currency has had a profound impact globally and has shown great momentum in participating in international competition. However, there are still unresolved challenges which this article discusses. The article first outlines the simple development of central bank digital currency and presents three major issues: information technology risks, user proficiency and acceptance, and competition from mainstream payment systems. It further proposes countermeasures and analyses to provide a clear direction for the identified problems. Research shows that technological bottlenecks, user acceptance, and obstacles from payment systems are indeed the most urgent issues facing the digital yuan, and the proposed countermeasures facilitate the resolution of these core problems. This article provides ideas for optimizing and improving the development path of central bank digital currency, helping both domestic and international efforts to enhance the stability and popularity of digital currencies. It also offers insights and references for other scholars studying central bank digital currency, contributing to the healthy development of global digital currencies.