China has officially launched a digital yuan operations centre in Shanghai, marking a significant step in its efforts to strengthen the international role of its currency and reduce reliance on the US dollar.
The People’s Bank of China (PBOC) announced the new hub, which will oversee three major platforms dedicated to cross-border payments, blockchain service networks, and digital asset management, claims Coin Market Cap.
The initiative builds on commitments made by PBOC governor Pan Gongsheng in June, when he outlined eight measures to promote yuan internationalisation as part of a “multipolar” monetary system.
Deputy governor Lu Lei confirmed that preliminary cross-border financial infrastructure for the digital yuan is already in place. The Shanghai centre is expected to further integrate China’s domestic financial systems with international networks, strengthening trade and investment flows.
The launch has been hailed by experts as a pivotal move in China’s long-term strategy to enhance its influence in global finance. Tsinghua University professor Tian Xuan described the new centre as an important step towards offering a “Chinese solution” for cross-border payment infrastructure, providing alternatives to dollar-dominated systems.
China’s push to internationalise its currency has intensified in recent years, particularly amid trade tensions with the United States. Data shows the digital yuan has already surpassed the dollar in China’s cross-border transactions, with the country’s Cross-Border Interbank Payment System (CIPS) continuing to gain global traction.
Alongside the digital yuan, Chinese authorities are also exploring the use of yuan-backed stablecoins. Earlier this year, AnchorX launched the first stablecoin pegged to the offshore Chinese yuan, aimed at supporting Belt and Road Initiative markets. This two-pronged strategy combines domestic central bank digital currency (CBDC) development with offshore stablecoin pilots, broadening the yuan’s international use cases.
Despite maintaining strict bans on cryptocurrency trading and mining since 2021, China has selectively embraced state-controlled digital currency initiatives. The Shanghai operations centre underscores Beijing’s focus on financial sovereignty and controlled innovation in digital asset infrastructure.
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