China Promotes Global Use of Digital Yuan

PBOC launches International Digital Yuan Operations Centre in Shanghai.

The People’s Bank of China (PBOC) has officially launched the International Digital Yuan Operations Centre in Shanghai, as reported by Xinhua News Agency.

The hub aims to enhance the role of China’s CBDC in global finance.

According to the report, the centre comprises three platforms: cross-border payments, blockchain services, and digital assets.

Central bank governor Pan Gongsheng announced the establishment of a structure for international digital yuan operations in June.

At the conference marking the hub’s opening, PBOC Deputy Chairman Lu Lei stated that the regulatory principles guiding its infrastructure are “no losses, regulatory compliance, and operational interoperability.”

He emphasized that the central bank will continue to support the sustainable development of the structure and facilitate cross-border trade, investment, and financing processes.

According to Xinhua, the centre is developed and managed by the PBOC’s Digital Currency Research Institute. The hub is responsible for creating and operating the blockchain infrastructure for China’s CBDC and ensuring cross-border interaction.

Back in August, media reported that Chinese authorities are considering the use of yuan-backed stablecoins to expand the global use of the national currency.

The Economist expressed doubts about the widespread launch of such “stablecoins” for several reasons, including strict capital movement controls.