Synopsis– China has launched a new international operations centre for its central bank digital currency (CBDC), the digital yuan, in Shanghai. This marks a key step in expanding the role of the digital yuan (e-CNY) in global finance. The People’s Bank of China (PBOC) aims to make cross-border payments faster and more efficient while supporting the wider adoption of the digital yuan internationally.
Enhancing Cross-Border Payment
The new centre focuses on improving the speed and cost of international transactions using the digital yuan. Traditional cross-border payments often take days and involve multiple intermediaries.
The digital yuan platform aims to reduce settlement times from days to seconds while cutting costs by up to 80%. This is especially significant for business-to-business trade, where China plays a leading role in global supply chains. The centre will initially pilot projects with Belt and Road Initiative countries and other partners to expand these benefits.
Three Core Platforms Power
The operations centre is based in Shanghai’s financial district and hosts three major platforms: a cross-border digital payment system, a blockchain technology platform, and a digital asset management platform.
The payment platform facilitates real-time global transactions with the e-CNY. The blockchain platform supports secure data sharing and smart contracts for trade finance. The digital asset platform manages tokenized assets while complying with recent regulatory curbs on asset tokenization. Together, these platforms aim to integrate the e-CNY deeper into global finance and trade networks.
Geopolitical Importance
By establishing this centre, China is advancing the global influence of its currency and challenging the dominance of the U.S. dollar in international trade. The e-CNY allows for “de-dollarization” by providing an alternative payment system less reliant on Western infrastructure like SWIFT.
It supports trade corridors across Asia, Africa, the Middle East, and Russia. Despite facing competition from dollar-pegged stablecoins and regulatory challenges, China is positioning the digital yuan as a key player in a multipolar global financial system.
Looking Ahead
The Shanghai centre is a major milestone in China’s digital currency journey. Since launching the digital yuan pilot in 2019, China has steadily expanded its use domestically and now focuses on international applications. The centre will host collaborations with financial institutions and technology firms, offering subsidies to encourage participation. While challenges remain, this initiative demonstrates China’s ambition to build a more efficient, inclusive, and open global payment system centered on the e-CNY by 2030.
Written By Fazal Ul Vahab C H
