China’s central bank is stepping up efforts to expand the reach of its digital currency by establishing an international operations centre for the e-CNY in Shanghai.
On 18 June 2025, Pan Gongsheng, Governor of the People’s Bank of China (PBOC), revealed the plan at the Lujiazui Forum, highlighting it as a key part of China’s broader financial policy to strengthen the yuan’s global standing through its digital form.
Pan Gongsheng addressing to the audience at Lujiazui Forum
The PBOC chief called for a shift towards a multi-polar international monetary system, where several major currencies share influence instead of relying heavily on the US dollar.
Pan said,
“Developing a multi-polar international monetary system will help strengthen policy constraints on sovereign currency countries, enhance the resilience of the system and better safeguard global financial stability.”
He envisages a future where currencies coexist in mutual competition, reducing the risk of unilateral sanctions weaponising traditional payment networks.
This move comes amid growing concerns over the vulnerabilities of existing cross-border payment infrastructures.
Pan pointed out that traditional systems are “easily politicised and weaponised,” which can disrupt global trade and finance.
Digital currencies like CBDCs and stablecoins, enabled by blockchain technology, offer an alternative to these fragile structures.
The Shanghai hub is intended not just as a centre for digital yuan operations but also as a platform for international collaboration on policies and technology integration.
Alongside this, authorities plan to launch yuan futures trading in the city to offer investors new risk management tools.
Pan stressed Shanghai’s role in piloting innovative monetary policies, including blockchain-based refinancing for sectors like aviation and shipping, as well as mechanisms supporting green finance and tech innovation bonds.
Other initiatives include building a trade reporting system to analyse transaction data across financial markets.
These efforts reflect China’s desire to elevate Shanghai as a global finance centre, capitalising on the city’s growing influence and the country’s expanding consumer market.
The digital yuan project has been underway since 2019 and is seen as one of the more advanced CBDC experiments worldwide.
Despite slower-than-expected user uptake, especially in cross-border payments, Pan highlighted the yuan’s growing international status.
It is now the world’s second largest currency in trade finance and the third most used in global payments.
Chinese regulators are pushing forward with new financial tools aimed at boosting innovation and attracting long-term investment, particularly in technology sectors.
Wu Qing, chairman of the China Securities Regulatory Commission, pledged support for expanding science and technology bond markets, while Li Yunze from the National Financial Regulatory Administration emphasised the country’s increasing openness to foreign banks and insurers.
Chairman Wu Qing delivers the keynote address at the Lujiazui Forum opening ceremony.
The establishment of an international e-CNY centre signals China’s clear intent to play a leading role in reshaping global currency dynamics.
By focusing on multi-polarity and reducing dependence on the US dollar, China aims to build a more balanced international monetary system.
However, the success of this vision will depend on whether the digital yuan can overcome existing adoption challenges and gain trust beyond its borders.
As digital currencies reshape payment systems, will China’s bold push for the digital yuan shift global financial power or simply add another player to an already complex monetary landscape?
The coming years will reveal how this evolving currency rivalry influences international trade and financial stability.
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