Research on the Role of e‑CNY in Promoting RMB Internationalization

Abstract

The internationalization of the Renminbi (RMB) is a crucial strategic objective for China. Currently, RMB internationalization faces constraints such as insufficient currency value stability, the need to enhance the influence of the Cross-Border Interbank Payment System (CIPS), weak network externalities, and the pressures of dollar hegemony and international currency competition. The issuance and circulation mechanisms of e-CNY, along with its inherent advantages, can help alleviate these issues and provide positive momentum to break through the bottlenecks of RMB internationalization. In the future, China should promote the development of e-CNY by expanding its cross-border application scenarios, enhancing the efficiency and security of cross-border payments, actively improving relevant legal and regulatory systems, seizing the opportunity of "de-dollarization" to encourage and support other countries in using the RMB, and leveraging initiatives like the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RCEP) to guide e-CNY internationalization, thereby injecting fresh momentum into the RMB's global ascent.