Key Takeaways:
- China is launching an international operations center for the digital yuan, aiming to expand its global usage and challenge US dollar dominance.
- The People’s Bank of China advocates for a multipolar currency system amid geopolitical tensions and weaponization of payment systems.
- Despite global CBDC developments, regulatory and economic hurdles are causing delays, with 31% of central banks postponing rollout plans.
China is accelerating efforts to expand the global reach of its digital yuan (e-CNY), aiming to challenge the dominance of the US dollar in international finance.
Speaking at the Lujiazui Forum in Shanghai, People’s Bank of China Governor Pan Gongsheng announced the creation of an international operations center for the digital yuan.
China talks up digital yuan in push for multi-polar currency system https://t.co/coOj6m0WHK https://t.co/coOj6m0WHK
— Reuters (@Reuters) June 18, 2025
He stressed the importance of a “multipolar” currency system, suggesting that recent geopolitical tensions – such as tariff policies under President Donald Trump – have weakened global confidence in the dollar.
Pan also criticized traditional cross-border payment systems as vulnerable to political misuse and unilateral sanctions.
While stablecoins tied to the US dollar continue to gain traction, China remains focused on developing central bank digital currencies (CBDCs) to uphold financial sovereignty.
Globally, several countries are advancing their own digital currency projects, including the EU (digital euro), UAE (digital dirham), Israel (digital shekel), and Hong Kong (stablecoin pilot).
However, a recent survey found that 31% of central banks are postponing CBDC rollouts due to regulatory and economic concerns.
China, having started research in 2014, views the digital yuan as a strategic tool to reshape global payments and reduce reliance on the US dollar.
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