The People’s Bank of China (PBOC) has opened a facility in Shanghai to strengthen the integration of the e-CNY in cross-border payments.
On September 25, the PBOC officially inaugurated an international operations center for its central bank digital currency (CBDC), the digital yuan (e-CNY), in the financial hub of Shanghai, according to the South China Morning Post.
PBOC Deputy Governor Lu Lei described the initiative as part of a “historical inevitability” in the evolution of payment systems, with the goal of building a more efficient, inclusive, and globally accessible cross-border financial ecosystem.
“Looking ahead, the PBOC will continue to support the stable and sustained development of the international operations center for the digital yuan, providing strong backing to facilitate cross-border trade, investment, and financing,” Lu Lei stated.
The launch of the center marks another step in the broader strategy to integrate the digital yuan into the global economy.
This push toward adoption of China’s CBDC comes at a sensitive moment, as the government takes a stricter stance on tokenization. Earlier this week, China’s financial market regulator asked several brokerages to temporarily suspend their real-world asset (RWA) tokenization activities in Hong Kong.
The cross-border payment system based on the digital yuan will explore the use of the e-CNY in international trade transactions.
“This project helps strengthen China’s influence in the global financial system and provides a Chinese solution that is open, inclusive, and innovative for improving the global cross-border payment system,” said Tian Xuan, president of the National Institute of Financial Research at Tsinghua University.
For years, China has worked to internationalize the yuan while simultaneously testing the digital yuan through domestic pilot programs. During these trials, the e-CNY has been used for retail payments, government disbursements, salary transfers, and public transportation fees.
