Fintech Confrontation 2025: China and the US Compete for the Digital Future

As of June 2025, the digital financial rivalry between China and the United States has reached new intensity. With Beijing pushing the e-CNY into Asia, the Middle East, and Africa, and Washington relying on regulation and private innovation, the global financial map is being redrawn. The core question: who will shape the standards of tomorrow's monetary system?

China’s e-CNY: The Strategic Push

China continues to aggressively expand its digital yuan (e-CNY). More than 29 cities now use it for transport, shopping, and public payments. According to the People's Bank of China, cumulative e-CNY transaction volumes surpassed USD 7.3 trillion in 2025.

On the international front, platforms like mBridge and CIPS are helping China promote e-CNY use in cross-border transactions. Countries like the UAE, Iran, Russia, and several African nations are integrating the yuan into their payment systems. A digital finance hub was launched in Shanghai in May 2025 to support global e-CNY use and rival SWIFT.

The US: No Retail CBDC, But Growing Regulation

In spring 2025, the US Congress passed a law prohibiting the introduction of a retail CBDC without its explicit approval. Federal Reserve Chair Jerome Powell (term ending in 2026) confirmed that there are no immediate plans for a digital dollar.

Instead, top banks like JPMorgan, Bank of America, and Wells Fargo are developing private stablecoins for use within networks like Zelle. Internationally, the US participates in the Project Agorá, a BIS initiative focused on wholesale CBDCs for cross-border settlements.

Global Landscape: Fragmentation or New Order?

As of mid-2025, over 130 countries are exploring or piloting CBDCs. The European Union is preparing for a digital euro, with full deployment expected between 2025 and 2028. Other players like Brazil, Nigeria, and India are progressing with national initiatives.

Two global models are taking shape: China's state-driven and expansionist approach versus the US’s decentralized, private-sector-driven strategy. The EU is balancing between technological sovereignty and interoperability with global partners.

Cryptocurrencies Squeezed

Amid the rise of CBDCs, decentralized assets like Bitcoin and Ethereum face increasing pressure. China maintains a strict ban on crypto, while in the US, platforms such as Coinbase are under legal scrutiny. The industry is shifting toward compliance or relocating to more permissive jurisdictions.

Conclusion

The fintech war between the US and China is no longer a theory — it's shaping global financial infrastructure today. China leads in scale and adoption, while the US counters with market-led models and tighter regulation. The outcome won't depend solely on technology but on alliances, trust, and strategic foresight.

Ultimately, the world is being asked to choose between two visions: centralized control versus decentralized innovation — a financial and geopolitical crossroads.

Disclaimer:
This article is an analytical review by the BurgasMedia editorial board and reflects the opinion of an expert group based on current political, economic, and social developments.
The conclusions presented are not predictions or factual statements, but a hypothetical interpretation of possible scenarios.
The publication is not responsible for any discrepancies with future developments and encourages readers to form independent judgments based on verified sources.