China’s central bank, the People’s Bank of China (PBOC), has announced a major initiative to internationalize its digital yuan (e-CNY) by establishing a dedicated global operations center in Shanghai.
PBOC Governor Pan Gongsheng revealed the plan during his keynote speech at the Lujiazui Forum. The governor highlighted the launch of the center as one of eight policy measures aimed at expanding the global footprint of the e-CNY.
The move underscores China’s ambition to make the digital yuan a key player in international finance and a viable alternative to existing cross-border payment systems, which are largely influenced by Western institutions.
Acknowledging Stablecoins’ Growing Role in Global Finance
In a rare and significant public statement, Pan acknowledged that stablecoins are rapidly reshaping cross-border payment infrastructure.
Speaking to a high-profile audience of financial regulators and industry leaders, he noted the growing adoption of blockchain and distributed ledger technologies in cross-border payments.
These innovations, he said, are enabling real-time settlement at the point of payment and disrupting traditional payment frameworks by drastically shortening transaction chains.
His comments mark a notable shift in tone from China’s traditionally hardline stance on crypto-related technologies and suggest a more pragmatic view toward stablecoins’ role in global finance.
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Strategic Timing Amid U.S. Stablecoin Legislation
Pan’s remarks came just a day after the U.S. Senate passed the GENIUS Act, a landmark piece of legislation aimed at regulating stablecoins.
Although China maintains a strict domestic ban on cryptocurrency trading and mining.
The PBOC’s recognition of the influence of digital assets suggests an awareness of their potential to alter international financial dynamics.
The new international center in Shanghai is expected to accelerate adoption of the e-CNY by targeting global business and trade applications.
Particularly in response to competition from dollar-pegged stablecoins and Western-led cross-border CBDC experiments.
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Tackling Regulatory Gaps and Advancing Technological Innovation
While emphasizing the potential of emerging financial technologies, Pan also highlighted the regulatory challenges they bring.
He warned that digital finance sectors still suffer from insufficient oversight, particularly in areas such as crypto assets, decentralized finance (DeFi), and climate risk-related frameworks.
Pan criticized current global regulatory approaches as inconsistent and overly influenced by political considerations, calling for stronger international coordination.
Additionally, he pointed to technologies like smart contracts as catalysts for ongoing transformation in the global financial system.
Further validating China’s efforts to stay ahead with structural innovations like blockchain-based trade finance tools.
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Broader Reform Agenda to Support Belt and Road and Offshore Finance
In addition to the digital yuan hub, the PBOC outlined several structural reforms to enhance Shanghai’s role in international finance.
These include the development of offshore free trade bonds aligned with Belt and Road Initiative goals, the piloting of new trade finance tools using blockchain, and the creation of a personal credit reporting agency.
A pilot reform for offshore trade financial services will also be launched in the Lingang New Area.
To support currency risk management, the PBOC plans to work with China’s securities regulator to explore RMB foreign exchange futures.
Collectively, these efforts aim to position Shanghai as a global center for digital finance while promoting the yuan’s international use in a rapidly evolving economic landscape.
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