China’s central bank will launch an international CBDC operations center

What’s new? China’s central bank governor Pan Gongsheng has announced the establishment of the e-CNY digital national currency international operation center in Shanghai to expand the global influence of the yuan.

Material by The Block

What else is known? Piloting of the digital yuan began in 2019, the asset started to be gradually introduced in certain regions and operations, for example, to pay for public transportation and purchase securities.

Already in 2021, authorities reported record transaction volumes in digital yuan, and in 2022, the digital yuan wallet appeared in mobile app stores. In addition, in the same year, the digital yuan surpassedV isa in the number of transactions at the Olympic Games.

Chinese online shopping platform JD com will launch its own stablecoin

The company has been testing the asset in Hong Kong’s regulatory sandbox since 2024

Read more

That same year, US senators introduced a bill to protect against the digital yuan over concerns that the asset would enable the Chinese Communist Party (CCP) to collect users’ personal data.

Later The Bank of Russia spoke about the possibility of integrating the digital ruble and the yuan.

In 2023, Jeremy Allaire, the head of USDC issuer Circle, urged China to use yuan-backed stablecoins instead of CBDC, as this would allow the country to make its currency international.

Hong Kong passes bill to regulate stablecoins

The central bank will be responsible for issuing licenses to issuers of fiat-backed coins

Read more

In March 2025, Zhang Ming, a member of the Chinese Academy of Social Sciences, said dollar-backed stablecoins reinforce dollar hegemony, especially in inflation-hit countries. To counter this, Ming suggested China issue its own stable currency and promote the digital yuan.

Speaking at the Lujiazui Forum on June 18, Central Bank Governor Pan Gongsheng said that the application of new technologies in cross-border payments is gaining momentum, with blockchain and distributed ledger technology (DLT) driving the rapid growth of CBDC and stablecoins:

“[These innovations] are enabling real-time settlement at the point of payment, fundamentally reshaping the traditional payment infrastructure and significantly shortening the cross-border payment chain <...> Technologies such as smart contracts and decentralized finance are expected to continue advancing the evolution of the global cross-border payment ecosystem.”

While Chinese authorities have openly embraced blockchain technology, they continue to ban cryptocurrency trading and mining on the mainland. In contrast, Hong Kong has set a course to develop as a regional cryptovhub, legalizing retail crypto exchanges and exchange-traded funds based on digital assets.

As part of the eight policies announced during the forum, Shanghai plans to pilot a number of structural monetary policy tools, including blockchain-based trade finance instruments, the central bank governor said.