When general secretary Xi Jinping addressed the National Congress of the Communist Party of China (CCP) this month, he called for “mechanisms countering foreign sanctions, interference and long-arm jurisdiction” to be strengthened and for “financial security” to be enhanced. The development of China’s central bank digital currency (CBDC), the digital yuan, could fulfil many of these aims.
Successful domestic trials are today being complemented by cross-border experiments with partner jurisdictions, opening the door to a new system of international payments that will help to shield Beijing from US sanctions and project Chinese power abroad.
