China has launched a new operations center for the digital yuan in Shanghai, enhancing its strategy for a central bank digital currency. This hub will oversee cross-border payment networks, blockchain services, and platforms for digital assets.
This effort showcases Beijing’s ambition to globalize the yuan and diversify monetary systems around the world. Additionally, it aims to decrease dependency on the US dollar in international trade.
Shanghai Hub Fortifies Digital Yuan Strategy
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The People’s Bank of China (PBOC) has inaugurated a digital yuan operations center in Shanghai to manage cross-border payments, blockchain services, and digital asset platforms. Reports from state media indicate that the center’s goal is to enhance the currency’s global footprint.
Moreover, Governor Pan Gongsheng discussed the initiative during a June forum, highlighting its significance in promoting the digital yuan on a global scale. He positioned it within a multipolar monetary framework, where multiple currencies share their impact on global trade. The hub enhances settlement processes by combining blockchain technology with cross-border payment systems, aiming to establish the digital yuan as a feasible international alternative.
Minimizing Reliance on the US Dollar
Chinese officials are actively seeking ways to lessen dependence on the US dollar. While China banned cryptocurrency trading and mining in 2021, recent signals indicate a more adaptable stance towards digital finance. Consequently, new initiatives are now being explored.
In August 2025, authorities reportedly considered the authorization of yuan-backed stablecoins to boost the currency’s use internationally. A month earlier, the State-owned Assets Supervision and Administration Commission (SASAC) analyzed stablecoins as a means to enhance cross-border payment frameworks.
In the meantime, state media called for the swift advancement of stablecoins to fortify the yuan’s international adoption. This demand underscores the increasing emphasis on digital currency innovation.
Recently, Hong Kong fintech firm AnchorX launched the inaugural stablecoin tied to the offshore yuan (CNH). This token is designed for cross-border transactions for nations participating in China’s Belt and Road Initiative, facilitating trade between Asia, the Middle East, and Europe.
