The Ongoing Evolution of Payment Instruments in China: A Case Study in Financial Innovation, and on the Role of the Central Bank

Patrick Hess ()
Additional contact information
Patrick Hess: European Central Bank

Chapter Chapter 8 in Cash in East Asia, 2017, pp 117-131 from Springer

Abstract: Abstract Payment methods and habits are evolving over time, as a result of technological innovation and commercial development. China, where paper money was invented more than 1000 years ago, is no exception to this. This chapter looks into the ongoing evolution of payment instruments in mainland China, and the interest and role of the central bank. It finds that, in recent years, the use of non-cash payment instruments has been growing rapidly, driven by commercial, technological and regulatory developments, as well as by changing customer needs. In this dynamic environment, the People’s Bank of China (PBoC) ensures an orderly development and the safety and efficiency of payment arrangements via regulations, the oversight of payment systems, instruments and service providers, as well as by providing payment infrastructure itself, such as the Internet Banking Payment System. With it, the PBoC responds not only to the rapid growth of Internet and mobile payments, but also to the increasing demand for instant payments, which is a global trend. The next technological shift might be a gradual one from electronic to digital money. In this area, the PBoC is also active, by overseeing and regulating Bitcoin and assessing digital currencies in general, including the potential issuance of a digital Yuan.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:fimchp:978-3-319-59846-8_8

Ordering information: This item can be ordered from
http://www.springer.com/9783319598468

DOI: 10.1007/978-3-319-59846-8_8

Access Statistics for this chapter

More chapters in Financial and Monetary Policy Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().