China Pushes Yuan in Cross-Border Trade Amid Dollar Tensions

The People’s Bank of China is quietly rewriting global trade finance rules. Beijing has instructed major commercial banks to increase yuan usage in cross-border transactions, accelerating de-dollarization efforts as geopolitical tensions escalate. While technically voluntary, the directive carries teeth—regulators now incorporate compliance into their Macro Prudential Assessment framework. Banks falling short risk downgrades that could hamper business expansion.

This policy shift coincides with Washington’s latest tariff salvo, highlighting how currency flows are becoming geopolitical weapons. The yuan’s creeping internationalization presents both challenges and opportunities for cryptocurrency markets. Dollar-weary nations may increasingly view decentralized assets as viable alternatives to both USD and CNY exposure.