China’s Digital Yuan Goes Global: How Beijing is Winning the CBDC Race

The world's first major central bank digital currency just hit hyperspeed. China's digital yuan (e-CNY) is now being deployed across three continents—and Wall Street's legacy players are scrambling to catch up.

From pilot to powerhouse in 36 months

What began as domestic retail trials in 2020 now processes $14 billion in monthly transactions. The People's Bank of China quietly onboarded 120+ foreign institutions to its blockchain network last quarter alone.

The new silk road runs on code

Belt and Road Initiative partners get preferential API access. Cross-border settlements that took days now clear in seconds—with every transaction transparent to Chinese regulators. Take that, SWIFT.

Why your CFO should care

When the yuan's digital version inevitably becomes the reserve asset of the Global South, today's 'stablecoin innovators' will look about as relevant as a 1990s forex broker. The future of money isn't decentralized—it's Beijing-approved.

In brief

• The People’s Bank of China (PBOC) has officially launched its international operations center for the digital yuan in Shanghai.
• The project is part of a Chinese strategy of monetary “multipolarization” to compete with the dominance of the US dollar.
• The digital yuan aims to strengthen cross-border payments and reduce geopolitical risks.

An operations center in Shanghai, the new showcase for the digital yuan

On Thursday, the People’s Bank of China inaugurated its International Operations Center for the digital yuan (e-CNY) in Shanghai. The announcement was made by Lu Lei, PBOC Deputy Governor, who describes this decision as a “historical inevitability” in the evolution of payments. 

The goal is clear: to establish a robust infrastructure capable of smoothing settlements and laying the groundwork for an international integration of CBDCs.

China has been working on its CBDC project since 2014. But this new phase marks an acceleration. It comes in a context where Beijing wants to reduce its dependence on the US dollar, especially for international transactions. 

As Governor Pan Gongsheng reminded in June at the Lujiazui Forum, the ambition is to create a “multipolar” monetary system, where several currencies could coexist and support global growth.

Beyond financial innovation, this center carries a strong geopolitical dimension. Traditional cross-border payment infrastructures, such as SWIFT, are perceived by Beijing as vulnerable and easily instrumentalized in the context of economic sanctions. 

By developing its own network, China intends to consolidate its monetary sovereignty and protect itself against possible external pressures.

CBDC vs stablecoins, a duel for the future of payments

The opening of the Shanghai center comes as China slows down its real asset tokenization projects in Hong Kong. Beijing therefore seems to prioritize the development of the digital yuan over that of RWAs.

This choice comes in an international context marked by the rise of dollar-backed stablecoins. These already facilitate global transactions and represent more than 98% of a market estimated at 288 billion dollars. 

Faced with this hegemony, China wants to reverse the trend by promoting global use of the digital yuan. According to Reuters, it might even authorize the issuance of yuan-denominated stablecoins, a major strategic U-turn after years of mistrust toward cryptos.

The competition looks direct: on one side, market-dominated stablecoins widely adopted by the crypto ecosystem; on the other, CBDCs tightly controlled by central banks. 

Beijing bets on its economic power and its network of trade alliances to impose the e-CNY, particularly among BRICS countries and the Shanghai Cooperation Organization.

With this operations center, China clearly advances its pieces in the global monetary battle. Its goal is twofold: to position the digital yuan as a credible alternative to the dollar and to limit the influence of stablecoins dominated by the United States. An ambitious bet that could reshape the international financial balance in the next decade.

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