Payments News


What Makes the e-CNY Different from Bitcoin? Central Bank Digital Currencies Share Little With Cryptocurrencies

“When China announced in 2019 that it was working on its own national digital currency, there was widespread speculation about what role, if any, blockchain would play in a digital yuan, or e-CNY. One reason for this was that news of the digital yuan came just after Facebook announced its own digital currency called Libra, later renamed Diem and killed after its assets were sold off. While the warning signs of regulatory hurdles facing Facebook were apparent from the beginning, it was not clear three years ago that Facebook, one of the world’s largest tech companies, would fail. So Beijing moved up its timeline to launch the e-CNY…While the digital yuan attracted broad attention with comparisons to blockchain-based cryptocurrencies, the reality is that CBDCs are almost as different from each other as bitcoin is from the cash in your bank account.”