A detailed analysis of China’s new digital currency system
It is by Zou Chuanwei, based on all available public info, and it’s the best I’ve seen. It buttresses my analysis that the yuan’s digitization does not pose any serious threat to the dollar’s global reserve currency position:
In contrast [to CIPS], DC/EP only requires users to have DC/EP wallets, which is much easier to have than to open RMB deposit accounts. DC/EP transactions are cross-border by nature. So, DC/EP can effectively promote the use of RMB abroad (Figure 9).
However, cross-border payments are only a necessary but not a sufficient condition for RMB internationalization. To be an international currency, RMB should be freely convertible, stable in value, extensively used in international trade, and widely accepted abroad. Besides, China’s financial market should be well regulated, mature and open. China should also forcefully enforce property rights protection.
Not holding my breath on those.