The Strategic Impact of Central Bank Digital Currencies on the International Payment System: A Comprehensive Empirical Case Study of China's Digital Yuan (2020-2025)

Abstract

The global financial architecture is undergoing a profound transformation driven by the rapid development of Central Bank Digital Currencies (CBDCs). This comprehensive study investigates the structural, macroeconomic, and geopolitical implications of sovereign digital currencies on the international payment system, utilizing the Chinese Digital Yuan (e-CNY) as a primary empirical case study for the period 2020-2025. Drawing upon a descriptive-analytical methodology and integrating multiple behavioral frameworks—including the Unified Theory of Acceptance and Use of Technology (UTAUT) and Network Effects Theory—the study evaluates the domestic operational performance, adoption drivers, and cross-border integration of the e-CNY. Findings indicate that state coordination and platform integration are the primary catalysts for mass adoption, significantly outweighing organic consumer preference. Furthermore, the integration of the e-CNY into international platforms like the Cross-Border Interbank Payment System (CIPS) and Project mBridge demonstrates a strategic shift toward establishing a multipolar financial system, challenging the traditional hegemony of the US dollar and legacy messaging networks. This paper provides a rigorous empirical foundation for understanding how CBDCs will redefine global monetary power dynamics in the 21st century.