The Dilemma of China’s Digital Currency

Published November 17, 2022

China’s central bank digital currency is part of a broader push by Beijing to establish global leadership in digital payments, assert independence from US power, and intensify control over Chinese society. America should be proactive in shaping the future of the digital economy. It must act to determine the appropriate role for digital currencies within the economy and prevent China’s digital currency from undermining American influence or threatening individual freedoms and human rights.

Discussion Questions:

1. Why is it important for America to get involved with digital currencies?
2. Should America create its own central bank digital currency? Why or why not?

Additional Resources:

• Watch “Cross-Disciplinary Group of Experts Discusses New Hoover Report On China’s Central Bank Digital Currency.” Available here.
• Read “Digital Currencies: The US, China, and the World at a Crossroads,” edited by Darrell Duffie and Elizabeth Economy. Available here.
• Read “What China Wants,” by Larry Diamond and Glenn Tiffert. Available here.