China launches international center for digital yuan

China's central bank announced on Wednesday the creation of an international operations center for the digital yuan in Shanghai, as part of new measures aimed at strengthening the city's role as a global financial hub.

The announcement came during the opening of the Lujiazui Forum, an annual event focused on reforms of the Chinese financial system, where the governor of the People's Bank of China (central bank), Pan Gongsheng, also revealed other initiatives, such as the creation of a data repository for transactions in interbank markets and new structural monetary policy tools .

The measures aim to improve financial supervision and promote innovation in areas such as international trade and digital finance, including the creation of a credit information agency and encouraging the use of the Chinese currency in foreign exchange futures contracts .

Pan said the digital yuan center, called e-RMB, aims to “facilitate the development of digital currency-related services in international markets.”

The official also highlighted that the transformation of the monetary policy framework is “a gradual and continuous process” , adding that the central bank will continue to evaluate and adjust its instruments to sustain financial stability.

The move comes as Beijing seeks to strengthen the yuan's global role amid trade tensions with the United States and Western sanctions on Russia. In 2024, the use of the Chinese currency in cross-border transactions reached record levels , driven by trade between China and Russia.

The growth in yuan-settled trade was also driven by the exchange lines that Beijing opened with Saudi Arabia, Argentina and Mongolia. New yuan clearing banks were also established in Laos, Kazakhstan, Pakistan, Brazil and Serbia.

Globally, however, the yuan accounts for just 4.74% of international payments , behind the dollar, euro and pound sterling, according to the most recent data.