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

China's financial hub Shanghai has launched a new operations center for the digital yuan, marking a significant step in Beijing's strategy to internationalize its currency and reduce reliance on the US dollar in global trade. The People's Bank of China (PBOC) will use the facility to oversee cross-border payments, blockchain services, and digital asset platforms.

Governor Pan Gongsheng positioned the initiative as part of a broader vision for a multipolar monetary system, where multiple currencies share global influence. The center integrates blockchain technology with cross-border payment networks, modernizing settlement processes and promoting the digital yuan as a viable alternative in international commerce.

This development comes despite China's 2021 ban on cryptocurrency trading and mining, suggesting a nuanced approach to digital assets. The move underscores China's determination to reshape global financial systems while maintaining tight control over its domestic digital currency ecosystem.