Central bank digital currencies (CBDCs): the design framework and implementation model of China's digital yuan (e-CNY) and comparison with digital euro

The specific chapter written by them examines China’s e‑CNY (digital yuan) as a leading retail CBDC and compares it with the digital Euro. E‑CNY, issued by the PBOC under a two‑tier system with authorized operating banks, has been piloting in over 23 Chinese cities and major international events in China. Digital Euro, on the other hand, is still in legislative and design phases. Both CBDCs adopt two‑tier structures and have online/offline functions. Key challenges for global CBDCs include user adoption, cybersecurity, privacy, cross‑border interoperability, and AML/CFT compliance. Future trends point to two‑tier models, tiered wallets, offline capability, retail focus, and regulatory updates to clarify legal tender status. The book chapter provides an in-depth explanatory case study of China’s e‑CNY which fill research gaps on real‑world CBDC design and implementation. It systematically compares e‑CNY and the digital Euro, offering a structured reference for cross-national CBDC governance and technical design research. Finally, it summarizes global CBDC trends, regulatory challenges, and IMF/BIS findings, giving scholars reliable data for studies on monetary policy, fintech, and international finance.