ABSTRACT : At the moment when the development of global private digital currency is unstoppable, countries
are in full swing in the research and development of legal digital currency. After more than ten years of
internationalization, RMB still has a lot of room for enhancement. However, while facing the problems such as
imperfect infrastructure of domestic financial market, it also needs to deal with external obstacles such as
traditional US dollar hegemony. The Digital Currency Electronic Payment (DCEP) planned to be issued by the
Central Bank of China adopts a two-level operation system with controllable anonymity and programmability,
which has a positive impact on the internationalization of RMB. This paper affirms the role of legal digital
currency in promoting the internationalization of RMB, analyzes a series of challenges such as the possible
contradiction or competitive relationship between DCEP and the US dollar system, the original paper currency
and other digital currencies, and then puts forward corresponding countermeasures and suggestions, hoping
that all countries can strengthen monetary and financial cooperation at home and abroad, then actively improve
and innovate the current international payment and clearing system.

KEYWORDS -Internationalization of RMB, Legal digital currency, Challenge, International co-operation