China is promoting the digital yuan on the global stage.
Date: 2025-09-29 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS, IN WORLD
The People's Bank of China has officially launched a new hub that will facilitate the adoption of the digital yuan outside the country. According to Xinhua, the center comprises three key platforms: cross-border payments, blockchain-based services, and digital asset transactions.
The idea for the center was announced by PBOC Governor Pan Gongsheng back in June of this year. Now, the project has been put into practice. At the opening ceremony, PBOC Deputy Governor Lu Lei noted that the infrastructure is based on the principles of security, regulatory compliance, and compatibility with international standards. He stated that the PBOC intends to maintain system stability and facilitate the development of cross-border settlements, trade transactions, and investment flows.
The new center is managed by the PBOC Digital Currency Research Institute. It is tasked with creating and operating the digital yuan's blockchain infrastructure, as well as ensuring its integration into the international payment system. Beijing is thus taking another step toward transforming its CBDC into a global settlement instrument.
Meanwhile, reports emerged in August that Chinese authorities were considering issuing yuan-backed stablecoins. Such a mechanism could further expand the use of the national currency in the global market. However, The Economist expressed doubts about the widespread adoption of such solutions, citing strict capital controls in the country, which could limit the appeal of such instruments.
The launch of the center in Shanghai demonstrates China's strategic approach: strengthening its own digital currency not only in domestic circulation but also internationally. The focus is on creating a technological infrastructure that will allow the digital yuan to occupy a more significant place in the global economy.
This move could impact the balance of power in international settlements, where the dollar and euro dominate. Looking ahead, China aims to create an alternative route for cross-border transactions, reducing dependence on existing channels and strengthening the country's financial autonomy.
