Author(s)

Pengyun Wang, Minxuan Zhong

Corresponding Author

Pengyun Wang

ABSTRACT

In recent years, the upsurge of digital currency has continued to rise. China also explored the issue of digital currency electronic payment in 2014. China is expected to become the first country in the world to issue digital currency and develop real applications. On June 18, 2019, Facebook released the Libra white paper. At this node, it is also necessary for China to launch digital currency electronic payment to cope with external competition. Based on the analysis of the development of digital currency electronic payment in China, this paper analyzes the opportunities brought by the central bank's introduction of digital currency to accelerate the internationalization of the RMB, effectively respond to external competition, and develop China's economy. It also analyzes its challenges for commercial banks, financial stability and national security and related policy suggestions are proposed, in order to provide theoretical support for the central bank to launch digital currency electronic payment.

KEYWORDS

Digital currency electronic payment (DECP), Libra, RMB internationalization, commercial banks