Shanghai Opens Digital Yuan Center to Expand Cross-Border Payment Systems

China has opened a digital yuan operations center in Shanghai, advancing its central bank digital currency strategy. The hub will manage cross-border payment networks, blockchain services, and digital asset platforms.

This initiative reflects Beijing’s plan to internationalize the yuan and diversify global monetary systems. Moreover, it actively seeks to reduce reliance on the US dollar in international trade.

Shanghai Hub Strengthens Digital Yuan Strategy

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The People’s Bank of China (PBOC) established a new digital yuan operations center in Shanghai to oversee cross-border payments, blockchain services, and digital asset platforms. State media reports that the center aims to boost the currency’s global presence.

Furthermore, Governor Pan Gongsheng outlined the project during a June forum, emphasizing its role in advancing the digital yuan globally. He framed the initiative within a multipolar monetary vision, in which several currencies share influence in global trade. The hub modernizes settlement processes by integrating blockchain with cross-border payment networks and positions the digital yuan as a viable international alternative.

Reducing Dependence on the US Dollar

Chinese officials actively pursue ways to reduce reliance on the US dollar. While China banned cryptocurrency trading and mining in 2021, policymakers have recently signaled a more flexible approach to digital finance. As a result, new initiatives are now under consideration.

In August 2025, authorities reportedly considered authorizing yuan-backed stablecoins to increase international use of the currency. A month earlier, the State-owned Assets Supervision and Administration Commission (SASAC) examined stablecoins as a tool for improving cross-border payment systems.

Meanwhile, state media urged faster development of stablecoins to strengthen the yuan’s international use. This call highlights the growing focus on digital currency innovation.

Hong Kong fintech company AnchorX recently launched the first stablecoin linked to the offshore yuan (CNH). This token targets cross-border transactions for countries involved in China’s Belt and Road Initiative. It facilitates trade between Asia, the Middle East, and Europe.