China has taken another step in advancing its state-backed digital currency by launching a digital yuan operations hub in Shanghai.
The new centre will focus on cross-border payments, blockchain services, and digital asset platforms as part of the country’s wider ambitions to internationalise the yuan and reduce reliance on the US dollar, claims Coin Market Cap.
The facility, unveiled by the People’s Bank of China (PBOC), will serve as a strategic base to strengthen domestic and international financial connections. According to PBOC governor Pan Gongsheng, the move forms part of eight measures introduced in June to promote yuan internationalisation within a “multipolar” monetary framework.
Deputy governor Lu Lei confirmed that preliminary infrastructure for cross-border digital yuan transactions is already active. The Shanghai hub is expected to further support trade and investment flows by embedding digital yuan capabilities into global financial networks.
Tsinghua University’s Tian Xuan described the launch as a pivotal moment for China’s financial development. He said the initiative represents a “Chinese solution” to modernise and expand cross-border payment systems, offering an alternative to dollar-dominated financial channels.
The announcement comes as China accelerates efforts to position the yuan as a credible rival to the USD, amid ongoing trade frictions. Reports indicate that the digital yuan has already surpassed the dollar in China’s cross-border settlements, with the Cross-Border Interbank Payment System (CIPS) gaining traction among global banks.
Alongside its central bank digital currency (CBDC), Chinese policymakers are also exploring yuan-backed stablecoins to extend the currency’s international footprint. AnchorX recently issued the first stablecoin linked to offshore yuan, designed to support Belt and Road Initiative countries. This approach aligns onshore CBDC development with offshore stablecoin experimentation.
Despite the government’s ban on cryptocurrency trading and mining in 2021, China has continued to invest in state-controlled digital financial infrastructure. The Shanghai hub reflects Beijing’s commitment to enhancing financial sovereignty while retaining strict oversight of private digital asset activities.
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