- The PBOC opened a digital yuan centre in Shanghai to expand cross-border payments.
- China aims to reduce reliance on dollar systems while advancing the yuan in trade.
- The centre will operate with blockchain and asset platforms to strengthen finance.
China has moved to expand its global role in digital currency. On Thursday, the People’s Bank of China (PBOC) inaugurated an international operations centre for the digital yuan (e-CNY) in Shanghai, according to the South China Morning Post.
PBOC Deputy Governor Lu Lei described the launch as part of a “historical inevitability” in payments innovation. The new hub aims to create a more efficient, inclusive, and open global cross-border payment system while accelerating CBDC integration across multiple sectors.
Strategic Platforms for Settlement and Blockchain
The newly established centre will operate on three main platforms: A cross-border payment platform, a blockchain services platform, and a digital asset platform. The cross-border payment system seeks to address inefficiencies in traditional remittance networks.
It is designed to reduce settlement costs and improve transaction speed using the e-CNY. At the same time, the blockchain services platform will enable interoperability between ledgers and provide standards for transaction information exchange.
Alongside these, the digital asset platform will allow financial institutions to deploy standardized token services, connecting blockchain ecosystems, to expand potential applications. According to China Daily, these platforms are intended to build the foundation for broader e-CNY adoption, strengthening Shanghai’s role as a financial hub.
Domestic Trials and Global Context
China has already tested the digital yuan domestically through pilot programs. These included everyday retail payments, public transport fares, government disbursements, and salary transfers, which showed how the currency could be integrated into daily life and services.
The PBOC has promoted principles of non-disruption, compliance, and interoperability in developing cross-border CBDC frameworks. Lu Lei stated that these guidelines will support the centre’s expansion while maintaining stability in the financial system. The central bank also indicated that the operations hub will help trade, investment, and digital financial services at an international level.
The timing of the move is notable. Earlier this week, China’s securities regulator directed brokerages to pause real-world asset (RWA) tokenization projects in Hong Kong. The decision reflected Beijing’s cautious stance, even as it invests heavily in blockchain technologies for transparency and traceability.
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A Question of Global Reach
The digital yuan centre may help China reduce its reliance on a U.S. dollar-dominated financial system, especially during ongoing trade and technology tensions with Washington.
Lu Lei told reporters that the central bank would “continue to support the steady and sustained development of the digital yuan international operations centre.” He added that it would provide “robust support for the facilitation of cross-border trade, investment, and financing.”
Analysts view the move as an effort to expand e-CNY’s footprint and provide an alternative architecture to Western-dominated financial systems. They expect the center to attract interest among Belt and Road partners and regional trade networks. The operations hub may also serve as a testing ground for yuan-pegged stablecoins, new regulatory regimes, and digital rails for institutions.
Remaining hurdles include Chinese capital controls or limited indexing of the yuan internationally; strict constraints may limit adoption outside aligned economies. Still, in China, merchants and consumers have substantially adopted the digital yuan in pilot zones. The twin developments prompt the most critical question: will Beijing’s digital yuan hub accelerate global CBDC adoption, or will it be resisted by established financial powers?
