Banque Populaire de China (PBOC) has created a new Yuan digital operations center in the country’s financial center, Shanghai, as part of the promotion of Yuan’s internationalization.
The Xinhua state media news agency said Thursday that the establishment was one of the eight new initiatives announced by the PBOC.
As previously indicated, the governor of the central bank, Pan Gongsheng, set out an ambitious plan to create a multipolar monetary system, where several currencies support the global economy. He also stressed the importance of advancing the internationalization of the Yuan at the time.
Digital Yuan HUB to focus on cross -border payment, Blockchain Service
According to the local report, the Shanghai establishment aims to promote Fintech developments and support innovation in digital finance.
At the same time, the center will focus on three main platforms, including a cross-border payment rail, blockchain services and a cryptographic platform.
Cross-border digital payment will explore the use of the Digital Yuan, nicknamed E-CNY, in international transactions. In addition, the blockchain and the digital active platform allow payments on the chain and almost instantaneous cryptography transfers.
“It contributes to improving China’s influence in the global financial system and provides an open, inclusive and innovative Chinese solution to improve the global cross -border payment system,” said Tian Xuan, president of the National Financial Research Institute of Tsinghua University.
The launch of the HUB marks an important step in the development of central bank digital currency (CBDC), he added.
President Xi Jinping’s vision to raise China’s influence in global finance
China has spent years trying to internationalize the Yuan, already testing the digital yuan through national pilot programs. During the tests, the E-CNY was used for small daily retail payments, government disbursements, wage transfers and public transport prices.
Although Beijing is wary of crypto and mining, it adopted blockchain technology for its traceability and transparency.
The digital hub in Yuan arrives in the middle of growing tensions with the trade and technological problems of the United States. This decision seeks to reduce dependence on a financial system dominated by the US dollar.
“For the future, the PBOC will continue to support the regular and supported development of Digital Yuan International Operations Center, providing solid support for the facilitation of trade, investments and cross-border financing,” said the vice-government of the Central Bank Lu Lei on Wednesday at a press conference.
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