Legal Tender
Currency mandated by law for debt settlement, including digital forms.
What is Legal Tender?
Legal tender like e-CNY holds equivalent value to physical RMB, mandatory for acceptance in China since pilots began. By 2025, e-CNY transactions reach RMB 7 trillion, backed by sovereign credit.
In digital assets, it positions CBDCs as alternatives to cash, with e-CNY’s M0 status ensuring zero fees and interoperability. This status drives merchant adoption in 23 pilot cities.
Related Terms
APR (Lending)
The annualized percentage rate of interest earned or paid in DeFi lending, excluding compounding.
CDP
A collateralized debt position, a smart contract mechanism in DeFi that allows users to borrow digital assets by locking collateral.
Basis Point
A unit of measure equal to one-hundredth of a percentage point (0.01%), used to express changes in interest rates, yields, or spreads in finance.
Blockchain
A decentralized digital ledger that securely records transactions across a network of computers in an immutable chain.
Bridge
A protocol or service that enables the transfer of digital assets or data between two distinct blockchain networks, such as moving ETH from Ethereum’s mainnet to a Layer 2 scaling solution.
Liquid Staking
A staking mechanism on Ethereum where users receive derivative tokens representing their staked ETH, allowing them to use these tokens in DeFi activities while earning staking rewards.