Author(s)

Qizheng Wu

Corresponding Author

Qizheng Wu

Abstract

Continuing innovations in blockchain technology and central bank digital currencies are ushering in a new era for cross-border payments. This paper discusses the changes brought about by combining blockchain technology and central bank digital currencies, analyzing user needs and market trends of digital currencies, and the expansion of the blockchain industry. However, this process is also accompanied by a series of challenges, including the excessive application of technology, which may lead to the imbalance of the financial system, the lack of supervision, which may lead to financial operation, and the birth of risks under blockchain domination. To solve these problems efficiently, we propose three major coping strategies: technological upgrading to achieve high-quality migration of central bank digital currency, institutional optimization and financial governance of central bank digital currency, and financial recovery. Finally, this paper emphasizes strengthening internal circulation quality control, building interaction and perception mechanisms, and establishing an evaluation system to achieve high-quality development of the central bank's digital currency, thereby boosting cross-border payments to meet user needs.

Keywords

Blockchain technology; Central bank digital currencies; Cross-border payment; Technical challenges; Financial governance