TL;DR
- China inaugurated an international center for the digital yuan in Shanghai, aiming to integrate its CBDC into cross-border payments.
- The PBOC launched three platforms: one for international e-CNY payments, another blockchain-based for cross-chain transactions, and a digital asset platform for financial infrastructure.
- The digital yuan now targets global adoption in partnership with banks in Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia.
China has inaugurated an international center for the digital yuan (e-CNY) in Shanghai, aiming to integrate its CBDC into cross-border payments and strengthen its internationalization strategy.
The initiative is led by the People’s Bank of China (PBOC) and is part of the broader goal of reducing the global financial system’s dependence on the dollar while reinforcing Shanghai’s role as an international financial hub.
The PBOC defined three core platforms within this center. The first is a cross-border digital payment system that will enable the use of the e-CNY in international trade and investments. The second is a blockchain service platform designed to facilitate on-chain payments and standardized cross-chain information transfers. The third is a digital asset platform that aims to adapt existing financial infrastructure to blockchain through ready-to-use digital services.
China: The Evolution of Monetary Systems Is Inevitable
At the inauguration, PBOC Deputy Governor Lu Lei described the evolution of monetary systems in the digital era as a “historical inevitability” and assured that the bank will support the center’s development. According to him, the goal is to make international payments more efficient, inclusive, and transparent, while also supporting global trade and investment.
Earlier this week, regulators asked brokerages in Hong Kong to temporarily suspend their real-world asset tokenization activities. At the same time, the United States approved a law allowing banks to issue dollar-backed stablecoins, a move that could extend the dominance of the U.S. dollar into the digital realm.
China was the first country to roll out a CBDC at scale. Since 2019, the e-CNY has been used in domestic pilot programs for retail payments, government subsidies, salary transfers, and public transport fares. Now, the challenge is to bring that experience onto the international stage, with ongoing joint trials alongside central banks in Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia.
According to academics like Tian Xuan, president of the National Institute of Financial Research at Tsinghua University, the Shanghai center will strengthen China’s influence in the global financial system and provide a homegrown alternative to the dollar-dominated model.
