US dollar uncertainty propels use of e-CNY
The geopolitical world is becoming multipolar. Inevitably, the international monetary system is also evolving towards one where several sovereign currencies coexist and compete with each other.
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As the second-largest economy, China must broaden the international role and appeal of the yuan. To this end, it makes sense to set up a new operations centre in Shanghai, the key mainland financial hub, to boost the yuan's global reach.
As announced at the just-concluded Lujiazui Forum in the city, the international operations centre will pilot a range of monetary policy tools to complement the rolling out of the digital renminbi.
The strategy underscores Beijing's determination to promote the use of the e-CNY, a central bank digital currency (CBDC), on a worldwide scale.
At a time when most countries are still grappling with the concept of a CBDC, China is moving full steam ahead. Successful trials in the retail use of e-CNY have been carried out across a dozen Chinese cities since 2023, and in Hong Kong since last year.
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A promising cross-border payments and banking system called 'mBridge' is linking the CBDCs from the central banks of China, Hong Kong, the UAE, Saudi Arabia and Thailand.
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US dollar uncertainty propels use of e-CNY
The geopolitical world is becoming multipolar. Inevitably, the international monetary system is also evolving towards one where several sovereign currencies coexist and compete with each other. Advertisement As the second-largest economy, China must broaden the international role and appeal of the yuan. To this end, it makes sense to set up a new operations centre in Shanghai, the key mainland financial hub, to boost the yuan's global reach. As announced at the just-concluded Lujiazui Forum in the city, the international operations centre will pilot a range of monetary policy tools to complement the rolling out of the digital renminbi. The strategy underscores Beijing's determination to promote the use of the e-CNY, a central bank digital currency (CBDC), on a worldwide scale. At a time when most countries are still grappling with the concept of a CBDC, China is moving full steam ahead. Successful trials in the retail use of e-CNY have been carried out across a dozen Chinese cities since 2023, and in Hong Kong since last year. Advertisement A promising cross-border payments and banking system called 'mBridge' is linking the CBDCs from the central banks of China, Hong Kong, the UAE, Saudi Arabia and Thailand.
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