China launches digital yuan center to boost cross-border trade, investment

The digital yuan international operation center was officially opened in Shanghai on Wednesday, marking the launch of cross-border digital payments, blockchain services and digital asset management for the e-CNY.

Managed by the Digital Currency Institute under the People's Bank of China, the center focuses on building and managing e-CNY's cross-border and blockchain infrastructures to promote connectivity with domestic and foreign financial systems, advancing the international operation of the digital yuan, facilitating the development of various financial businesses development, and serving digital financial innovation.

Lu Lei, vice-governor of the PBOC, said on Wednesday that the new center, projected to better support cross-border trade and investment, not only represents China's substantial measures to facilitate cross-border payments but also helps to further consolidate Shanghai's role as an international financial hub.

The digital renminbi cross-border financial infrastructure system has been initially established at a time when the upgrading and evolution of the currency and payment system is inevitable, he said.

The PBOC is committed to providing open, inclusive and innovative solutions to improve global cross-border payment systems. The three principles of "non-destructive, compliant and interoperable" raised by the Chinese central bank have become the basic guidelines for the construction of cross-border infrastructure for legal digital currency, said Lu.

Meanwhile, he added that the PBOC is exploring digital asset innovations to enhance regulatory efficiency, transparency and automation in settlements.

With the strong growth momentum to be injected by the new center, Shanghai will expand the application scenarios of the digital RMB, broaden its usage scope and help improve the internationalization level of the Chinese currency, said the city's executive vice-mayor Wu Wei.

By stepping up technology innovation and exploring applications, the new center will improve its services' security, stability and accessibility, providing solid technical support for deeper integration between finance and the real economy, he said.