As global monetary tensions escalate and the US-China trade rivalry intensifies, Beijing is making a bold move to disrupt the dollar’s supremacy by launching its own international payment system, aiming to redefine global financial flows and accelerate the rise of a multipolar economic order.

By launching a direct attack on the traditional networks dominated by the West, it has drawn the attention of global markets, policymakers, and major financial institutions.

Shanghai Leads China’s Push for a Yuan-Based Global Payment Network

Backed by the People’s Bank of China (PBoC) and top financial regulators, Shanghai’s municipal government has rolled out a comprehensive action plan to expand the adoption of the yuan in international transactions.

The new international payment system will be developed based on China's own Cross-Border Interbank Payment System (CIPS), a network that already includes over 1,300 financial institutions across 110 countries.

And the purpose of this new initiative is simple; not only does it promote cross border settlements in in the Chinese currency (Yuan), it also supports Chinese companies internationally by offering financing and payment solutions alternative to the U.S dollar while decreasing the dependence on the SWIFT network.

Shanghai’s selection as the launchpad for this offensive is strategic: the city is a global financial hub and a laboratory for China’s international economic ambitions. The CIPS expansion is also closely tied to the Belt and Road Initiative, which aims to weave a yuan-centric commercial network across emerging markets.

Chna reshaping the international financial landscape

China's first testing ground would be BRICs, where China will start its mission to reshape the global financial architecture based on an alternative currency to the U.S dollar.

China will be promoting the new "cross-border settlements in Yuan" to its BRICS members, not only facilitating exchanges within the economic bloc but also reducing the member's exposure to the American banking system.

By promoting CIPS as a robust alternative, Beijing is positioning itself to reshape international trade dynamics, foster bilateral financial flows with strategic partners, and further embed the yuan in global commerce.

This strategy aligns with recent BRICS initiatives to encourage local currency use and establish independent financial institutions, signaling a decisive shift away from dollar dependency.

China’s aggressive push for a yuan-based payment system raises critical questions about the future of the international monetary order.

If the transition toward a multipolar payments landscape accelerates, it could erode the dollar’s dominance and trigger fundamental shifts in global financial markets.

For emerging economies, an autonomous BRICS payment system could unlock greater economic flexibility and negotiating power-but also heighten tensions with defenders of the current dollar-centric regime.