PBOC pushes forward digital yuan international center in global currency push

China’s central bank is stepping up efforts to make the digital yuan a serious contender on the global stage. At the June 2025 Lujiazui Forum in Shanghai, People’s Bank of China Governor Pan Gongsheng announced plans to launch an international operations center for the digital yuan, or e-CNY, signaling a strategic push toward greater global use of the currency.citeturn0search0

The new facility in Shanghai is designed to manage cross-border e-CNY transactions and support a broader ecosystem around the digital yuan. It is part of a broader strategy to integrate the e-CNY with existing settlement infrastructure, particularly China’s Cross-Border Interbank Payment System, known as CIPS. This setup would allow the digital yuan to flow more smoothly across borders, helping to reduce reliance on the U.S. dollar in international trade.citeturn0search0turn0search26turn0search6

At the forum, Pan criticized traditional cross-border payment systems as outdated and vulnerable to political pressure. He argued that digital infrastructure—anchored by a multipolar currency framework—would offer greater resilience and broader stability for global financial markets. In that vision, several major currencies could coexist in a system of mutual checks and balances, rather than being dominated by the dollar.citeturn0search0turn0search15

Interest in this approach has been building. Earlier this year, CIPS recorded a record in cross-border yuan payments, reflecting growing usage of the currency across trade corridors. Meanwhile, Chinese payment giant UnionPay launched QR code payment services in Southeast Asia, expanding yuan usage in countries like Vietnam and Cambodia. The combination of infrastructure expansion and central bank cooperation is setting the stage for a more mature international digital payment ecosystem.citeturn0search6

Foreign institutions are also playing a part. Banks like Standard Bank of South Africa and First Abu Dhabi Bank have already signed on to use the CIPS network, helping to validate the system’s international potential. Experts say that pairing these institutions with the new operations center gives the PBOC credible logistical support as it scales e-CNY usage.citeturn0search0turn0search6

More broadly, this move aligns with China’s goal of promoting a more multipolar global monetary system, where power and influence are shared across several strong currencies. It also taps into sentiment that has shifted over recent years: as U.S. trade policy has seemed more uncertain, countries are seeking alternatives to dollar-based payment mechanisms that could expose them to financial or political risk.citeturn0search0turn0search6turn0news21

There are practical advantages, too. The infrastructure underpinning the digital yuan supports both online and offline transactions, a feature especially valuable in regions with limited internet access. Its programmable nature enables capabilities like conditional payments—useful for things like trade finance, aid distribution, or payroll in cross-border settings.orfonline.org

As the PBOC builds out its digital yuan infrastructure, the operations center could serve as a hub linking financial institutions, trade partners, and regional regulators. If international usage expands smoothly, this could fundamentally shift how money moves around the world—and signal that the digital yuan is more than a domestic experiment. It could become a building block in a new era of digital currency networks.