CENTRAL BANKS’ DIGITAL CURRENCIES: EXPERIENCE IN IMPLEMENTING THE DIGITAL YUAN

One of the leaders in the introduction of digital currencies today is China. Given the considerable authority and influence of this country in the world, in our opinion, it is worth studying the experience of the PRC and considering the advantages and disadvantages of using digital currencies, the feasibility of introducing elements of this financial instrument in Ukraine. The factor behind the introduction of its own digital currency in China was the idea of moving away from the use of the main world reserve currencies and gradually expanding the use of national currencies in international settlements, the idea of reducing dependence on the main players and acquiring leadership status on the world financial market. e-CNY is a digital form of fiat currency issued by the People’s Bank of China with authorized operators to exchange and provide services to the public. It is a valuebased, quasi-account and hybrid account-based payment instrument with legal tender status, a loosely linked account and supporting managed anonymity. The introduction of the digital yuan promotes financial integration, increases the efficiency and security of payments, reduces the cost of international transactions, ensures the accelerated development of financial markets and institutions, and contributes to the expansion of access to financial services for the general population. Digital currency performs the following functions of money: a measure of value, a means of circulation, payment and accumulation. The People’s Bank of China has chosen a two-tier system model with an intermediary digital currency to issue the digital yuan. In such a system, the regulator plans to use proven technological solutions and operational skills of credit and financial institutions in payments, taking into account the specifics of the Chinese economy. The digital currency system, built on two levels, organically fits into the existing two-level monetary system. The digital yuan has become a harbinger of large-scale changes in the global financial market. Therefore, with the introduction of the digital yuan, the central banks of many countries intensified their own development of digital currencies to qualitatively improve the system of internal and especially international settlements.