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China is intensifying efforts to globalise its central bank digital currency (CBDC), the digital yuan, while championing the creation of a multi-polar international monetary system that reduces dependence on the U.S. dollar.
Governor of the People’s Bank of China (PBoC), Pan Gongsheng, announced plans to establish an international operations centre for the e-CNY in Shanghai, during remarks at the Lujiazui Forum—a high-level financial summit that gathered local and global regulators and industry leaders.
“Developing a multi-polar international monetary system will reinforce checks and balances, boost resilience, and enhance global financial stability,” Pan stated, underscoring China’s growing advocacy for currency diversification.
Pan’s comments come amid growing disillusionment with dollar-centric financial systems, triggered in part by U.S. tariff policies and geopolitical tensions that have catalysed investor interest in alternatives such as the yuan, the euro, and Asian regional currencies.
The push for a global yuan—a long-standing ambition of Beijing—has gained momentum despite China’s reluctance to fully liberalise its capital account. Instead, China is making strategic progress through bilateral settlements, cross-border infrastructure, and digital innovation.
On the sidelines of the forum, six foreign banks, including Standard Bank and First Abu Dhabi Bank, agreed to adopt CIPS, China’s Cross-Border Interbank Payment System, for future yuan-based settlements. The move is seen as a key step in bolstering the use of the Chinese currency in international trade.
Pan also warned that traditional cross-border payment systems are vulnerable to geopolitical manipulation and unilateral sanctions, calling for new digital solutions to safeguard financial stability.
“Legacy systems can be politicised and weaponised, undermining global economic order. Digital finance offers a path to greater neutrality and efficiency in cross-border transactions,” he said.
Broader Reforms to Attract Global Finance
Senior Chinese financial regulators used the forum to reaffirm commitments to financial market liberalisation, currency stability, and foreign investor participation.
Zhu Hexin, head of the State Administration of Foreign Exchange, said China is better positioned to mitigate foreign exchange volatility and will maintain the yuan’s exchange rate at a “basically stable” level.
Li Yunze, Director of the National Financial Regulatory Administration, echoed the message, promising a more transparent and predictable regulatory environment for foreign institutions.
“Foreign players are vital to our financial system, serving as bridges for capital, talent, and innovation. We will further expand access and create more inclusive market opportunities,” Li said.
Li noted that China’s expanding consumer market and digital finance ecosystem present compelling opportunities for global institutions seeking growth in Asia’s largest economy.
As China sharpens its focus on currency resilience, digital infrastructure, and financial sovereignty, the digital yuan appears poised to play an increasingly central role in the country’s international economic strategy—positioning it as both a challenger to and complement of traditional reserve currencies.
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