The People’s Bank of China (PBOC) has established a new digital yuan operations center in the nation’s financial hub, Shanghai, in a move to foster the internationalisation of the yuan.
State-run media Xinhua News Agency said Thursday that the establishment is among the eight new initiatives announced by the PBOC.
Alongside, the center will focus on three major platforms, including a cross-border payment rail, blockchain services and a crypto platform. The cross-border digital payment will explore the use of the digital yuan, dubbed e-CNY, in international transactions. Additionally, the blockchain and the digital asset platform will enable on-chain payments and near-instant crypto transfers.
Per the local news report, the Shanghai establishment aims to promote fintech developments and support innovation in digital finance.
The launch of the hub marks an important step in the development of central bank digital currency (CBDC), he added.
“It contributes to enhancing China’s influence in the global financial system and provides an open, inclusive and innovative Chinese solution for improving the global cross-border payment system,” said Tian Xuan, president of the National Institute of Financial Research of Tsinghua University.
