Beijing boosts digital yuan for global trade with new operations center

Shanghai hub part of China’s strategy to internationalize yuan and cut dollar dependency.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

China has launched a new operations center in Shanghai dedicated to advancing the digital yuan.

The People’s Bank of China announced the opening on Sept. 25, describing it as a step to expand the digital yuan’s role in global finance. The center will focus on cross-border payments, blockchain services, and digital asset platforms.

According to Xinhua News Agency, the hub includes a cross-border payment platform, a blockchain service platform, and a digital asset platform.

The launch follows commitments outlined by central bank governor Pan Gongsheng in June, when he presented eight measures to strengthen the yuan’s international use. He positioned the effort within a “multipolar” monetary framework, in which several currencies support global trade and investment.

Tian Xuan, president of the National Institute of Financial Research at Tsinghua University, said the new center could enhance China’s standing in the international financial system and improve cross-border infrastructure with what he described as a “Chinese solution.”

Reducing dollar reliance

The move highlights Beijing’s ambition to reduce its dependence on the U.S. dollar and extend the yuan’s international reach.

China is simultaneously exploring the role of yuan-backed stablecoins, despite having banned crypto trading and mining in 2021.

In August, media reports surfaced that Chinese regulators were considering authorizing such stablecoins to support global use of the yuan.

The discussion followed a July meeting in Shanghai by the State-owned Assets Supervision and Administration Commission, which examined digital currency strategies.

AnchorX, a Hong Kong-based fintech firm, introduced the first stablecoin tied to the offshore version of the yuan earlier this month.

The token facilitates payments across countries linked to China’s Belt and Road Initiative, the global infrastructure program stretching from Asia to Europe and the Middle East.