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 consistent in the era of digital economy by digitalizing cash. An e-CNY system will make financial services more accessible, providing fiat money for a large population in various scenarios. Those without bank accounts can enjoy basic financial services provided via e-CNY wallet, and foreign residents temporarily travelling in China can open an e-CNY wallet to meet daily payment needs without opening a domestic bank account. In addition, as e-CNY is settled upon payment, businesses and related parties can improve cash flow while enjoying more convenient payment services.

The second objective is to support fair competition, efficiency and safety of retail payment services. E-CNY will provide the public with a new interoperable way of payment, which will further diversify payment instruments and make the payment system more efficient and safer. The Chinese authorities support coordinated development of various payment methods. E-CNY and existing electronic payment tools are on different dimensions. They complement each other, and also differ. Defined as a substitute for M0, e-CNY mainly serves retail payment. Its issuance aims at enhancing financial inclusion. It draws on existing electronic payment technologies and supplements the existing system. While sharing similar payment functions, e-CNY and existing electronic payment instruments differ in many aspects. First, e-CNY is China's legal tender, which is the safest asset in China. Second, it has intrinsic value, and can be transferred without relying on bank accounts. In addition, it supports off-line transactions and is settled upon payment. Third, e-CNY supports managed anonymity, which helps protect privacy and user information.

The third objective is to echo the international initiative and explore the improvement of cross-border payments. Whether e-CNY will be used in cross-border payments, and to promote RMB internationalization draws much attention. First of all, cross-border payment involves various complicated issues such as monetary sovereignty, foreign exchange policies and arrangements, as well as regulatory and compliance requirements. It is also a challenge that the international community is committed to address. The internationalization of a currency is a natural result of market selection. The international status of a country's currency depends on its economic fundamentals and the depth, efficiency and openness of its financial markets. Therefore, though technically ready for cross-border use, e-CNY is still designed mainly for domestic retail payments at present. Looking ahead, the PBOC will actively respond to initiatives of G20 and other international organizations on improving cross-border payments, and explore the applicability of CBDC in cross-border scenarios. Based on experiences of domestic trials and international demand, and preconditioned on mutual respect to monetary sovereignty and compliance, the PBOC will explore pilot cross-border payment programs and will work with relevant central banks and monetary authorities to set up exchange arrangements and regulatory cooperation mechanisms on digital fiat currency in line with the principle of "no detriment," "compliance," and "interconnectivity."