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Shanghai to Host Global Operations Centre for Digital Yuan
China's central bank governor, Pan Gongsheng, announced at the Lujiazui Forum on 18 June that a dedicated international operations centre for the e‑CNY will be established in Shanghai. The move signals Beijing's renewed push to extend the digital yuan's reach in global transactions and shift the balance of currency power.
Pan described stablecoins and central bank digital currencies as 'reshaping cross‑border payments', emphasising that global financial infrastructure needs stronger regulatory alignment. He argued that traditional cross‑border payment systems are inefficient, vulnerable to politicisation, and susceptible to unilateral sanctions.
The Shanghai centre will serve as a nexus for international e‑CNY operations, aiming to streamline digital yuan transactions abroad and enhance integration with global financial markets. This facility complements efforts to boost the Cross‑Border Interbank Payment System, which has recently onboarded major international banks, including Standard Bank and First Abu Dhabi Bank.
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Governor Pan framed this initiative as part of a broader strategy to foster a 'multi‑polar international monetary system'. By promoting competition among key currencies, China seeks to reduce reliance on the US dollar while enhancing financial system resilience.
Pan also called for more coordinated global regulation of stablecoins and CBDCs. As digital monetary instruments gain traction, he said global oversight must be harmonised to manage risks effectively.
Beyond infrastructure, Chinese regulators affirmed their commitment to exchange‑rate stability and further opening domestic financial markets. Zhu Hexin of the State Administration of Foreign Exchange noted improved tools to counter external pressures, while Li Yunze of the National Financial Regulatory Administration highlighted efforts to foster a transparent and predictable environment for international investors.
Analysts say China's timeline aligns with expanding e‑CNY pilots and integration of public transport systems in several cities, such as Chengdu, Beijing, Suzhou, and Shanghai. The Shanghai centre appears aimed at extending these domestic innovations into globally scaled applications.
Internationally, China has taken part in multilateral CBDC initiatives such as Project mBridge, alongside the BIS, Hong Kong, Thailand, UAE, and Saudi Arabia. This collaboration signals a shift toward creating interoperable digital payment bridges and presents an alternative to dollar‑centred systems.
Observers suggest that China aims to balance integration with established structures such as SWIFT while developing parallel alternatives like CIPS. That strategy could help counteract geopolitical vulnerabilities inherent in dominant payment networks.
Critics caution that for the digital yuan to gain traction, China must address capital‑account restrictions, strengthen market transparency, and win international trust in its legal and regulatory systems.
Yet this latest initiative dovetails with China's longer‑term ambition to internationalise the renminbi. The launch of the Shanghai operations centre — with its promise to enable faster, more efficient overseas e‑CNY transactions — may mark a significant milestone in Beijing's drive toward a more diversified global monetary order.
