Why China Might Beat the U.S. to Digital Currency
One of my daughters came home quietly one afternoon, eyes a little dimmer than usual. She had learned she was the only girl in her class not invited to a birthday party. No tears. No outburst. Just that subtle shift that happens when a child realizes the world doesn’t always play fair.
She shrugged. “I guess they just do things differently.”
That moment stuck with me. In our house when we have moments like this we now say “they don’t play by our set of rules.” It offered an early lesson in how much can shift when the rules are not shared. Sometimes what feels confusing or even unfair is not personal, instead, structural. A different set of rules, values, or priorities sits underneath.
That same thought returns as I watch China move forward with its digital currency project. The United States is still studying, defining, and questioning. China is already building. More on that here: https://www.forbes.com/sites/digital-assets/2024/07/15/a-2024-overview-of-the-e-cny-chinas-digital-yuan/?utm_source=chatgpt.com
This Is Not About Who Is Right. It Is About Who Is Ready.
China’s central bank, the People’s Bank of China, operates with top-down authority. No state-level reviews. No federalist push and pull. When a decision is made, execution follows quickly. That structure allows the digital yuan to move from concept to pilot at a pace the Federal Reserve could never match.
The U.S. Favors Checks and Deliberation.
In our system, progress requires cooperation. Financial institutions, regulators, state governments, privacy advocates, and the public all hold a piece of the puzzle. Each voice matters. Each voice can delay or redirect. It is inefficient by design. That friction guards freedoms, even when it slows innovation.
China Builds Fast by Working Within Itself.
Payment platforms like Alipay and WeChat Pay already serve most of the population. Those systems operate under close oversight, which makes integration with a digital currency much simpler. In the United States, innovation often happens outside of government channels. Fintech grows in the gaps regulation leaves behind.
Digital Currency Is a Tool. But It Also Tells a Story.
In China, the story is one of modernization, efficiency, and state oversight. The purpose is clear, and the rollout is aligned with that purpose. In the U.S., the story is less settled. Does a digital dollar improve access? Increase control? Reduce costs? Without shared clarity, the road to implementation stays foggy.
Two Paths Are Emerging.
China has speed. The United States has process. These are not just differences in governance. They are reflections of what each system values. China may get there first. The U.S. may get there with more protections built in.
The irony is hard to miss. The same centralization that helps China lead this new currency frontier could be the very thing that keeps it from going global.
Because a digital currency can be implemented with control.
A reserve currency must be trusted with freedom.
That tension holds the key to what comes next.
Lauren Pearson
Huang, R. (July 14, 2024). A 2025 Overview Of The E-CNY, China’s Digital Yuan. Forbes.
The most important thing in my life is my family. My husband, Andrew, and our three smart and brave daughters.