Legal Supervision Study On Cross-border Electronic Payment—Based On Internationalization Of The Renminbi

Cross-border trade is growing rapidly as more companies source goods and services globally. Essentially, a cross-border electronic payment is a transaction by which funds move from one institution to another or one party to another in different border at the direction of an institution’s customer and through the transmission of electronic instruction messages that cause the institutions to make the funds available. It is important to be clear on the destination on what is meant by currency internationalization. Internationalizing a currency means encouraging its use in cross-border transactions, in general but also specifically by nonresidents and in commercial and financial transactions not involving the issuing country itself. Renminbi internationalization is a sort of test for observers of China’s economy, and restrictions on the cross-border activity of the currency due to China’s capital controls are released gradually. Generally speaking, this paper is aim at providing a frame of reference for effective supervision in legal practice of cross-border electronic payment, which is regarded as the first attempt of Renminbi internationalization. It will be a long road, however, and there are still questions about whether full convertibility of the currency is a prerequisite for further significant progress to be made.According to the factors above, this paper makes analysis on the regulatory status and policy based on the cross-border electronic payments, and then gives the conclusion of the regulatory problems and advices on the legal supervision. As cross-border payments are intrinsically inefficient because there is not one single ubiquitous global payment system, lack of a common global standard and variations between systems have reduced the ability of both bank and corporate treasury/enterprise systems to seamlessly pass data between each other, this paper gives suggestions on how a combination of cross-border electronic payments forces are influencing its future. Specifically, this paper is divided into three chapters below:First chapter mainly defines the cross-border electronic payments and looks at the challenges of the current cross-border payments, analyses challenges that must be overcome in order to improve the cross-border process that most payment systems are based on local laws and practices within existing domestic banking and financial structures. Payments are subject to domestic regulations which compound the challenges of cross-border payments because often rules vary between an originating and receiving country.Chapter two refers to supervision of cross-border electronic payments in foreign countries. Through the comparison of supervision systems among the United States, European Union and Japan, this paper considers briefly the internationalizations of the two currencies(US dollar and Euro). Also, legislative experience in the Dodd Frank Section 1073 on Cross-border Remittance Transfers of United States is a good reference for Chinese legislative supervision.Chapter three is on the basis of the regulation problems mentioned, combining the foreign advanced legislative experience with financial practices in China. This chapter puts forward some policy suggestions for perfecting cross-border electronic payments, in order to inform and guide cross-border electronic payment participants by offering lessons from examining measures of success in a variety of electronic payment models.