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China Launches Shanghai Hub to Boost Digital Yuan and Cross-Border Payments
China’s central bank has unveiled a new digital yuan operations center in Shanghai, expanding the scope of its central bank digital currency (CBDC). The facility will oversee platforms for cross-border transactions, blockchain services, and digital asset development, signaling Beijing’s intent to push the yuan deeper into global finance.
The launch was confirmed by state media outlet Xinhua, which highlighted the center as part of eight initiatives outlined earlier this year by People’s Bank of China (PBOC) Governor Pan Gongsheng. According to Pan, the effort is tied to a broader “multipolar” vision of global finance, where multiple currencies support international trade and economic stability.
Strategic Push for Yuan Internationalization
Chinese policymakers view the hub as a cornerstone in advancing the yuan’s international role while reducing reliance on the US dollar. Experts, including Tian Xuan of Tsinghua University, called the initiative a key step that strengthens China’s influence in cross-border financial infrastructure and provides a “Chinese solution” to long-standing inefficiencies in payments.
Alongside the new hub, Beijing has been signaling renewed openness to digital assets. Reports earlier this year indicated that officials are considering the authorization of yuan-backed stablecoins to further globalize the currency. This comes despite mainland bans on crypto trading and mining introduced in 2021.
Stablecoins and Belt & Road Synergy
The push toward yuan-linked stablecoins is already gaining traction outside the mainland. AnchorX, a Hong Kong-based fintech firm, recently issued the first CNH-backed stablecoin, designed for foreign exchange markets and cross-border payments between nations participating in China’s Belt and Road Initiative.
Together, the Shanghai hub and stablecoin experiments mark China’s accelerating effort to digitize and globalize its financial systems, potentially challenging the dominance of the dollar in international settlements.
