China’s Central Bank Digital Currency and its Potential Future Implications

China’s CBDC and its potential future implication to Global Currency, Payment System, and Foreign Exchange Reserves

By Lars Aspling, Board member of the Belt and Road Institute in Sweden


In this report, we describe one important aspect of the Belt and Road Initiative’s principle of “Financial Integration” and deal with the following issues:
• developments leading up to the present fragile global monetary system.
• the ongoing change into a new area of digital currencies that is on its way.
• its potential future implication for Global Currency, Payment Systems, and Foreign Exchange Reserves.

Financial integration, one of 5 pillars of the BRI, may be better served by CBDC and new cross-border payments solutions than what we can imagine today. Only the future will tell, but significant changes are underway.

The importance of global financial and monetary starting points that China has initiated through the CBDC is relevant for addressing and correcting the ongoing abuse of power within the current global monetary system. The current dollar system no longer works effectively to promote fair trade and stop corruption and speculative investment worldwide.

However, the Belt and Road initiative has an even deeper purpose. It has a clear and fundamental goal of eliminating global poverty through infrastructure investment in modern technologies. It must be reiterated and emphasized that although financial and monetary solutions and reforms can and should play an essential role in achieving this goal, the underlying power and essence of BRI, as seen and supported by BRIX, is to achieve these goals as the Chinese President Xi Jinping put forward in his 2013 speech, “A Community for a shared future for mankind.”