An Analysis on Strategic Objectives of the Issuance of the Digital Renminbi

Western countries have begun to express grave concerns about the digital Renminbi (RMB) development, as some experts assert that the digital RMB is part of China's systematic effort to become a monetary hegemon, a key component in China's quest to become a world hegemon. On the one hand, the Chinese government views the issuing of digital RMB as a new challenge to the Chinese financial system, anticipating that it will bring about a fundamental change to the financial system. On the other hand, the Chinese government regards the plan to promote the digital RMB as critical to its national strategy and continues to prepare for its issuance. Against this backdrop, this paper analyses why the development of digital RMB began, the factors that should be promoted as part of this strategy, and clarifies the true and strategic objectives of the digital RMB. Western countries have begun to express grave concerns about the digital Renminbi (RMB) development, as some experts assert that the digital RMB is part of China's systematic effort to become a monetary hegemon, a key component in China's quest to become a world hegemon. On the one hand, the Chinese government views the issuing of digital RMB as a new challenge to the Chinese financial system, anticipating that it will bring about a fundamental change to the financial system. On the other hand, the Chinese government regards the plan to promote the digital RMB as critical to its national strategy and continues to prepare for its issuance. Against this backdrop, this paper analyses why the development of digital RMB began, the factors that should be promoted as part of this strategy, and clarifies the true and strategic objectives of the digital RMB.