CONDUCTING OPERATIONS WITH THE DIGITAL RMB OF THE PEOPLE'S BANK OF CHINA IN THE CONDITIONS OF INCREASING COMPETITION BETWEEN BANKS

This study notes that China's research and development of the digital yuan system is aimed at creating the cash needs of the population in combination with financial infrastructure. The scientific novelty of the research lies in the development of measures for conducting operations with the digital yuan of the People's Bank of China in modern conditions. The subject of the study is the problems of developing a digital yuan system.

The purpose of the study is to study the Chinese digital currency in the context of digitalization. The deduction method was used to study the basics of the introduction of the digital yuan digital currency in the country, the analysis method was used to disclose transactions with the digital yuan by banks, and the systematization method was used to determine a number of indicators. The numbers solidify China as a leader among countries developing their own central bank digital currencies (CBDCs) — digital tokens issued by central banks — although implementation is still in the early stages. E-CNY, as the digital yuan is called, has so far been used mainly for domestic retail payments. The total number of e-RMB transactions reached 950 million, with 120 million wallets opened. However, the electronic yuan in circulation accounts for only 0.16% of China's M 0 money supply, or cash in circulation. Now the e-CNY balance is only two tenths of 1% of M0, so the balance is very small, but with this balance we support a large number of transactions, which means high speed and greater efficiency. Chinese state-owned banks participated last year in a cross-border transaction trial developed by the Bank for International Settlements.

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