New center aims to expand yuan internationalization and reduce reliance on the US dollar
China’s central bank has launched a new digital yuan operations center in Shanghai, designed to oversee platforms for cross-border payments, blockchain services, and digital assets. The move underscores Beijing’s ambition to strengthen the yuan’s role in global finance and reduce dependence on the US dollar.
Expanding the Role of the Digital Yuan
The new hub, unveiled by the People’s Bank of China (PBOC), is part of eight policy measures introduced earlier this year by Governor Pan Gongsheng. The initiative aligns with what Pan described as a “multipolar monetary vision,” where several currencies support the global economy rather than relying primarily on the dollar.
Alongside the launch, officials introduced a cross-border payments platform, a blockchain service hub, and a digital asset platform to support the digital yuan’s broader integration into financial markets.
Strategic Importance for Global Finance
Experts see the Shanghai hub as a critical milestone in China’s push for currency internationalization. Tian Xuan, president of the National Institute of Financial Research at Tsinghua University, described the move as “an important step that could strengthen China’s influence in the international financial system and provide a Chinese solution for improving cross-border payment infrastructure.”
Stablecoins and International Reach
China’s strategy also includes exploring yuan-backed stablecoins to accelerate the currency’s global use. In August, reports indicated that authorities were considering regulatory approval for stablecoin projects, marking a partial reversal from the country’s 2021 ban on cryptocurrency trading and mining.
Just last week, AnchorX, a Hong Kong-based fintech firm, launched the first stablecoin pegged to the offshore Chinese yuan (CNH). The token is expected to play a role in facilitating transactions under the Belt and Road Initiative, China’s global infrastructure program linking Asia, the Middle East, and Europe.
By launching the Shanghai hub, China is signaling its intention to position the digital yuan at the heart of future cross-border transactions. If successful, the move could reduce dollar reliance in trade settlements and strengthen China’s foothold in the digital finance race.
Disclaimer
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