Daniel Walker
China is taking a major step to internationalize its digital yuan (e-CNY) by establishing a new global operations center in Shanghai, according to an announcement by Pan Gongsheng, Governor of the Peopleโs Bank of China (PBOC).
Speaking at the influential Lujiazui Forum on Wednesday, Pan unveiled the e-CNY center as one of eight new financial policies aimed at strengthening Chinaโs presence in the evolving global payments landscape.
The digital yuan is often recognized as one of the most mature central bank digital currencies (CBDCs) in development. Since its pilot launch in 2019, the Chinese government has implemented various initiatives to accelerate adoption, though mainstream usage remains limited.
Pan acknowledged that emerging technologies such as blockchain and distributed ledger technology (DLT) are rapidly transforming the cross-border payment infrastructure, fueled by the growing prominence of CBDCs and stablecoins.
โWe are seeing payment systems evolve toward real-time settlement and shorter transaction chains,โ Pan said. โThese innovations are fundamentally reshaping the financial landscape.โ
Stablecoins and DeFi Spark Both Progress and Concern
Pan also pointed out that while blockchain-based systems offer speed and transparency, they bring significant regulatory challengesโespecially in the decentralized finance (DeFi) space.
โThe rise of smart contracts and DeFi protocols is driving a new era in global payments, but regulation has not kept pace,โ he cautioned.
The comments come just one day after the U.S. Senate passed the GENIUS Act, a major stablecoin-focused bill now headed to the House of Representatives. This legislative progress in the West underscores the global momentum behind digital assets and stablecoins.
Despite Chinaโs embrace of blockchain for infrastructure purposes, the country still maintains a strict ban on crypto trading and mining.
Blockchain Tools and Policy Innovation to Be Piloted in Shanghai
Among the other initiatives revealed, Pan said that Shanghai will trial new blockchain-based tools for trade finance, as part of broader structural monetary reforms.
Still, he warned that digital finance continues to outpace regulatory frameworks.
โThere is a pressing need for international cooperation on crypto asset oversight and climate-related financial risks,โ Pan noted, adding that current regulatory approaches are too inconsistent and politically influenced.
