The Department of Law, North South University, organized a webinar on the topic “The Future of Central Bank Digital Currency: Digital Yuan and Beyond” on 25 February 2022. Professor Heng Wang, Co-Director of the Herbert Smith Freehills China International Business and Economic Law (CIBEL) Centre, Faculty of Law and Justice, University of New South Wales, spoke as the guest speaker in this particular webinar. Professor Md. Rizwanul Islam, Chair, Department of Law, North South University, gave an introductory speech.
The speaker approached the topic through three central questions “What is China’s approach to CBDC?”, “How to understand the approach?” and “What about its future?” and went on to address them in his talk. He explained how CBDC is different from other digital currencies like bitcoin. One of the most important differences is that CBDC is centrally controlled by the government and other digital currencies are private owned.
Professor Wang explained how the People’s Bank of China would issue e-CNY and then operating institutions like large state-owned banks and internet banks will disseminate the e-CNY and provide services to users to open digital wallets. The other banks will provide e-CNY services to people and lastly, consumers and businesses will be able to use e-CNY.
China, through e-CNY, aims to reshape the international financial order by reducing reliance on the US Dollar and impacting technology on international frameworks of CBDC and amplifying the global usage of the Yuan, the Chinese currency. Professor Wang further discussed the challenges like policy risks of CBDC, operational risks of CBDC, protection and safety of users’ data, etc. Professor Wang concluded that in the future, a balance has to be struck between efficiency and safety and explained that adjustments to the change in practice is necessary.
The webinar was followed by a question-answer session which was moderated by Professor Md. Rizwanul Islam. Faculty members of North South University and foreign universities and students of North South University participated in the webinar.
This was the 22nd webinar of the international webinar series of the Department of Law, North South University, which was launched in January 2022. Eminent Professors from Australia, Austria, Germany, the Netherlands, the United Kingdom, and the University States of America graced the webinar series by delivering their lectures.