China is taking another concrete step to expand the reach of its digital yuan.
On Thursday, the People’s Bank of China (PBOC) officially opened a digital yuan operations center in Shanghai, bringing together platforms for cross-border payments, blockchain services, and digital asset management under one roof. The move is part of a broader effort to internationalize the yuan and reduce reliance on the U.S. dollar.
What the Shanghai Hub Will Do
The new center will oversee three core platforms. One focuses on cross-border payment infrastructure, another supports blockchain-based services, and the third handles digital asset management tied to the digital yuan.
PBOC Governor Pan Gongsheng first announced the plan in June, framing it as one of eight initiatives aimed at advancing yuan internationalization within what he described as a more multipolar global monetary system.
Cross-Border Infrastructure Is Already Live
Deputy Governor Lu Lei confirmed that early versions of the digital yuan’s cross-border financial infrastructure are already operational. The Shanghai hub is expected to strengthen links between China’s domestic financial system and international payment networks.
In practical terms, that means smoother settlement for trade and investment flows, especially in regions where China is already a major economic partner.
A Strategic Move for Global Finance
Economists see the launch as more than a technical upgrade.
Tian Xuan, a professor at Tsinghua University, called the center an important step toward expanding China’s influence in international finance. He described it as a “Chinese solution” to long-standing inefficiencies in cross-border payments, particularly those tied to dollar-dominated systems.
The Yuan’s Momentum Is Building
The timing matters.
Amid escalating trade tensions during President Trump’s administration, China has made a clear push to position the yuan as a viable alternative to the U.S. dollar. The digital yuan has already overtaken the dollar in China’s cross-border transactions, and China’s CIPS payment system continues to gain adoption outside the country.
Together, these developments are slowly reshaping how money moves in China-linked trade corridors.
Stablecoins Enter the Picture
China’s strategy is not limited to its onshore central bank digital currency.
Recent reports suggest authorities are also exploring yuan-backed stablecoins as a way to promote offshore usage. Earlier this year, AnchorX launched the first stablecoin tied to the offshore Chinese yuan, targeting countries involved in the Belt and Road Initiative.
This creates a dual-track approach. Onshore, China advances a tightly controlled CBDC. Offshore, it experiments with stablecoins designed to circulate more freely in global markets.
Digital Currency, With Tight Control
It is worth noting the contrast.
China banned cryptocurrency trading and mining in 2021, and that policy has not changed. What has changed is the government’s selective embrace of state-controlled digital currency infrastructure.
The Shanghai digital yuan hub fits squarely into that approach. It supports China’s long-term goals around financial sovereignty and international influence, while keeping private digital assets under strict oversight.
The message is clear. China does not want decentralized crypto. It wants digital money, on its own terms.
