China is intensifying efforts to globalize its digital yuan, with top officials signaling strong commitment to making the central bank digital currency (CBDC) a key player in international finance.
PBOC Targets International Expansion via Shanghai
Pan Gongsheng, governor of the People’s Bank of China (PBOC), recently announced plans to establish an international operations center in Shanghai for the digital yuan, also known as the e-CNY. This statement was made during the Lujiazui Forum, an influential financial summit attended by top regulators and global finance leaders.
Pan emphasized that the move is part of China’s broader vision to promote a “multipolar” currency system, where multiple national currencies share influence in the global economy — challenging the current dominance of the U.S. dollar and the euro.
Decline in U.S. Dollar Appeal in 2025
The U.S. dollar’s global influence may be weakening, Pan suggested, due in part to recent tariff policies implemented by U.S. President Donald Trump. These unpredictable trade measures have introduced volatility into global markets and reduced the dollar’s attractiveness to international investors.
As nations look for more stable and politically neutral alternatives, China is positioning the digital yuan as a solution.
CBDC as a Response to Geopolitical Risk
Pan also pointed out the risks of traditional cross-border payment systems, describing them as vulnerable to politicization. He warned that existing systems can be “weaponized” to enforce unilateral sanctions, which may undermine global economic stability.
By contrast, a state-controlled digital currency like the e-CNY offers a more controlled and potentially less politicized payment infrastructure. China aims to insulate its international financial interactions from foreign sanctions and control through the expansion of the digital yuan.
Digital Yuan Gains Ground
Since its pilot launch in 2020, the digital yuan has been gradually integrated into domestic payments, transportation, and even cross-border trade initiatives. The push for international expansion signals Beijing’s ambition to reshape global financial norms using blockchain-based infrastructure.
With the planned international operations hub in Shanghai, China is clearly moving from testing to scaling.
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