China Opens New Centre in Shanghai to Boost Digital Yuan

China has opened a new operations centre in Shanghai to promote the digital yuan and push its use in international finance. The People’s Bank of China announced the launch on September 25, saying the facility will support projects that make payments across borders easier and strengthen digital platforms linked to the currency.

New Platforms to Support International Payments

The new Shanghai centre will focus on three main areas. According to Xinhua News Agency, it will host a cross-border payment platform, a blockchain service platform, and a digital asset platform. Each one is designed to give the digital yuan a stronger role outside China’s borders.

This move builds on plans announced by Pan Gongsheng, governor of the central bank, earlier this year. 

In June, he listed eight steps to improve the yuan’s international use. He explained that the global financial system is moving toward what he called a “multipolar” framework, where several currencies will support trade and investment instead of just one leading currency.

Chinese scholars believe the centre is a sign that the country is serious about making its digital currency a tool in global finance. Tian Xuan, president of the National Institute of Financial Research at Tsinghua University, said the project could help China improve financial links with other countries and offer a “Chinese solution” to current gaps in cross-border payments.

Reducing Dependence on the Dollar

The creation of this centre also reflects Beijing’s wider goal of reducing its reliance on the United States dollar. For years, China has tried to give the yuan more weight in international markets. The digital yuan is now seen as one way to reach that target.

At the same time, officials are studying the use of yuan-backed stablecoins. Even though cryptocurrency trading and mining were banned in 2021, there are ongoing talks about allowing stablecoins tied to the yuan. Reports in August suggested that regulators were considering the idea as a means to help the currency gain wider acceptance. 

Meanwhile, the China Securities Regulatory Commission (CSRC) has asked major brokerages in Hong Kong to halt their real-world asset tokenization plans. The move is meant to strengthen risk control and confirm that business claims are supported by real operations.

Growing Interest in Yuan-Backed Stablecoins

Furthermore, in July, the State-owned Assets Supervision and Administration Commission held a meeting in Shanghai to discuss digital currency strategies. Not long after, Hong Kong-based fintech firm AnchorX launched the first stablecoin tied to the offshore yuan.

The token is designed to help payments between countries that are part of China’s Belt and Road Initiative, a global infrastructure programme that connects Asia, Europe, and the Middle East.

The opening of the Shanghai centre shows that China is moving step by step to raise the international standing of the digital yuan and reduce its dependence on the dollar. In related news, China’s PetroChina is considering stablecoins for cross-border energy trade settlements, a move that could reshape global energy transactions.