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China is stepping up efforts to give its digital yuan a global push. In a major policy reveal at the Lujiazui Forum, People’s Bank of China (PBOC) Governor Pan Gongsheng announced the launch of an international operation center for the e-CNY in Shanghai.
This move signals China’s broader ambition to boost the digital yuan’s presence on the global stage, just as stablecoins and other digital payment technologies begin to reshape cross-border transactions.
A Strategic Shift Toward Globalization
The Shanghai-based center will aim to enhance the international use of the e-CNY, which has been under pilot since 2019. Despite being among the most technically advanced central bank digital currencies (CBDCs), the e-CNY has struggled with user adoption at home. By going global, China seems intent on expanding its financial footprint, particularly in international trade and settlement.
Stablecoins and CBDCs Reshape Cross-Border Payments
In his keynote, Pan acknowledged the growing influence of blockchain, distributed ledger technology (DLT), and stablecoins in the world of payments. He emphasized that these tools are shortening transaction chains and enabling near-instant settlements, effectively overhauling the legacy systems that dominate international finance. He also pointed out the regulatory concerns they bring, especially as DeFi and smart contracts gain traction.
Timing Matters: U.S. Stablecoin Bill Adds Pressure
Pan’s comments came just a day after the U.S. Senate passed the GENIUS Act, a major stablecoin regulatory bill, hinting at a brewing global race for digital currency leadership. While China bans crypto trading and mining domestically, it continues to lean into blockchain innovations, with Shanghai also set to pilot new monetary tools, including blockchain-based trade finance.
A Cautious Warning
Pan also raised a red flag on fragmented global regulation. He said oversight for crypto assets remains weak and inconsistent, often influenced by political agendas rather than sound policy. His call reinforces the urgent need for regulatory coordination as digital finance evolves at a rapid pace.
Chinese E-Commerce Giant Eyes Global Stablecoin Licenses
JD.com is making a major move into crypto payments, announcing plans to apply for stablecoin licenses in major global markets. The Chinese e-commerce giant aims to slash cross-border settlement costs and times, by up to 90% and under 10 seconds, respectively, starting with business-to-business transactions before expanding to consumers.
Chairman Richard Liu framed the initiative as part of JD’s turnaround strategy following what he called “five lost years” of stagnant growth and innovation. The move aligns with growing global interest in stablecoins, highlighted by the U.S. Senate’s recent passage of the GENIUS Act. While some warn about corporate surveillance risks, JD sees stablecoins as a key to reviving its global ambitions.