from digital yuan to renminbi internationalization
e-cny has been achieving great progress and introduced into testing scenario. it’s expected that e-cny can be contributed to expanding the renminbi internationalization by scholars. however，the internationalization is a natural process as with the growth of china economy. we believe that as a cutting-edge technology，digital yuan does not substantially change this path，but it turns out to play an important role.
since the outbreak of covid-19，the united states has implemented the unprecedented dovish fiscal and monetary policies，and the global concern about the purchasing power of the us dollar has been surging. to hedge the inflationary risks，virtual encryption currencies like bitcoin and ethereum have been invented and attracting worldwide attention. as the representative of the digital fiat currency，the research and development of the digital yuan，or e-cny，has been continuously accelerating during the past years. these are the new phenomena in the world monetary system. in the recent discussion，digital yuan is often associated with the renminbi internationalization by the academic researchers. in this paper，we investigate how the digital yuan help prompt renminbi internationalization. we first review the evolution of the international monetary system and the characteristics of digital yuan，and argue that the renminbi internationalization is a natural process，in which the renminbi will expand as the improvement of china's economic power. as a cutting-edge technology，digital yuan does not substantially change this path，but it turns out to play an important role.
evolution of international monetary system
