Study On The Main Risks And Legal Precautions In The Context Of Cross-Border Central Bank Digital Currency Circulation

In the context of economic globalization,state relations are getting closer,and crossborder currency circulation has become the norm.Due to the characteristics of low circulation costs,high payment efficiency,and guaranteed security,central bank digital currency has good prospects in the field of cross-border payments.Under the influence of domestic legal systems,regulatory measures,and the international environment,legal digital currencies may encounter many risks in the process of cross-border circulation,including data risks,foreign exchange risks,and money laundering risks.At present,the domestic academic circles’ related research on legal digital currency is mainly concentrated in the domestic issuance and circulation field,and there is still a lack of research on related risks and legal prevention in the field of cross-border circulation.By observing the development status at home and abroad,summarizing and refining the previous research results,analyzed the main risks encountered in the cross-border circulation of central bank digital currency,and proposed corresponding legal preventive measures.Unlike other digital currencies,central bank digital currency is issued by the central bank and have national credibility and legal compensation.At the stage of substitution for cash,the transfer of rights still applies the rule of possession or ownership.Judging from the value of promoting the cross-border circulation of digital RMB,it can enhance the international status of the RMB,safeguard financial sovereignty,and improve the financial system.The cross-border circulation of central bank digital currency will cause data risks,and data risk prevention measures need to be taken.In terms of data sovereignty contention,the United States and the European Union have pre-emptive advantages and have formed their own data sovereignty determination rules,making data governance a thorny issue.my country’s relevant laws lack systematization of data regulations.Due to the difference in the connotation of data and personal information,it is difficult to bring data into the scope of privacy protection.In the context of globalization,the boundaries between the public and private sectors of data are broken,and there are technological gaps between countries,which will lead to data monopoly.Establishing international data governance rules based on independence,equality,and cooperation,establishing a dual institutional system of data ownership and usufruct,and optimizing data monopoly supervision methods will help deal with data risks in the context of cross-border circulation of legal digital currencies.The emergence of central bank digital currency has increased the difficulty of foreign exchange management,and management thinking needs to be adjusted.The circulation mechanism of central bank digital currency will challenge the prevention and rescue mechanism of financial risks.According to the Mundell Impossible Triangle Theory,the free flow of currency will lead to instability of the exchange rate.The transition from deposit currency to digital currency will lead to a reduction in the domestic savings rate,which in turn will induce foreign debt risks.In order to solve the foreign exchange risks brought by the digital RMB,it is necessary to improve the foreign exchange legal system,raise the interest rate of bank deposits,strengthen the management of cross-border capital flow,and realize the market-based supervision of the renminbi exchange rate.Central bank digital currency will bring new money laundering risks,and it is necessary to do a good job in criminal identification and anti-money laundering.Legal digital currency may breed new money laundering methods,mainly because the upstream currency crimes do not target legal digital currencies,which affects the determination of money laundering crimes.Changes in money laundering methods have also caused difficulties in the conduct of anti-money laundering work.Incorporating criminal acts with Central bank digital currency as the criminal object into one crime,updating the predicate crimes of money laundering crimes,and improving the anti-money laundering governance path will help deal with the occurrence of money laundering risks.