Abstract

China has been at the forefront of experimenting with digital currencies, starting from the decentralized cryptocurrencies (cryptos) in the late 2000s to the most recent state-controlled central bank digital currency (CBDC). This article reviews China’s history of digital currencies and examines its unique regulatory approach to both cryptos and CBDC. Reflecting on China’s concerns and ambitions, this article further explores the anticipated future of digital currencies in China with a particular focus on China’s regulatory developments. It concludes that e-CNY, a state-controlled CBDC, is China’s future of money, although that means China must navigate an increasingly complex regulatory landscape.