China has launched a new operations center for the digital yuan in Shanghai, marking another step in the expansion of its central bank digital currency strategy. The People’s Bank of China (PBOC) announced that the facility will oversee platforms dedicated to cross-border payments, blockchain services, and digital assets. The development was reported by state-run Xinhua News Agency as part of the government’s ongoing efforts to promote the international role of the digital yuan.
The newly established hub is part of a broader initiative to strengthen China’s presence in global finance. Officials stated that the launch includes a cross-border payments system, a blockchain service platform, and a digital asset framework designed to support the currency’s adoption on an international scale.
Advancing yuan internationalization
The initiative was highlighted by PBOC Governor Pan Gongsheng earlier this year, when he outlined eight measures aimed at advancing the international use of the yuan. He described the strategy as part of a broader monetary vision where multiple currencies share responsibility for supporting global economic stability.
Academic leaders have echoed this position, viewing the move as significant for China’s influence in the global financial system. Tian Xuan, president of the National Institute of Financial Research at Tsinghua University, described the establishment of the operations center as a step that could enhance the country’s role in international finance and serve as a framework for improving cross-border payment infrastructure with a Chinese-led solution.
China's international operation center for the digital RMB has officially begun operations in Shanghai, the country's financial hub, the People's Bank of China (PBOC) said Thursday. #XinhuaNews pic.twitter.com/HtLYBFasqp
— China Xinhua News (@XHNews) September 26, 2025
Stablecoin development and strategic positioning
Beyond the digital yuan, China is also exploring the role of stablecoins in boosting the global profile of its currency. Despite its 2021 ban on cryptocurrency trading and mining, authorities have shown signs of shifting policy. In August 2025, Reuters reported that regulators were evaluating the introduction of yuan-backed stablecoins to support international use of the currency.
This policy exploration followed a strategic meeting convened in Shanghai in July by the State-owned Assets Supervision and Administration Commission, where officials discussed the future of stablecoins and digital currencies. State media coverage from June also emphasized the urgency of pursuing stablecoin development to strengthen financial competitiveness.
The first step in this direction has already emerged outside mainland China. AnchorX, a Hong Kong-based fintech firm, recently launched the first stablecoin linked to the offshore version of the yuan (CNH). The token is aimed at facilitating cross-border transactions, particularly for countries engaged in China’s Belt and Road Initiative, which focuses on infrastructure links stretching from China to the Middle East and Europe.
Expanding influence in global finance
Analysts suggest that China’s launch of the digital yuan operations center, combined with its stablecoin ambitions, demonstrates a broader strategy to reduce dependence on the US dollar and expand its financial reach. By building infrastructure that integrates blockchain technology with its central bank digital currency, China aims to provide an alternative model for cross-border payments and digital asset management.
The Shanghai hub is expected to act as a testing ground for these innovations, reinforcing China’s position as a leader in central bank digital currency development. Its alignment with broader economic projects such as the Belt and Road initiative indicates that Beijing views digital currency not only as a financial tool but also as an instrument of geopolitical influence.