China’s central bank chief Pan Gongsheng has pledged to expand the footprint of the digital yuan, reaffirming the country’s vision for its central bank digital currency (CBDC).
According to a Reuters report, China is creating an international operations center in Shanghai for the digital yuan, also known as e-CNY. Pan made the remarks at the Lujiazui Forum, a professional forum for high-profile local and international finance regulators and executives.
China envisions a “multipolar” currency system where multiple currencies support the global economy, Pan said. This vision contrasts with the current system, where a few currencies, like the US dollar and the euro, play large roles in the global financial system.
The US dollar, in particular, may have become less appealing to investors in 2025, partly due to the unscripted rollout of tariffs by US President Donald Trump over the past months.
Pan also weighed in on digital technologies, claiming that traditional cross-border payment systems are vulnerable to geopolitical risk.
“Traditional cross-border payment infrastructures can be easily politicized and weaponized, and used as a tool for unilateral sanctions, damaging global economic and financial order,” he said.
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The battle between stablecoins and CBDCs
Stablecoins, often pegged to the US dollar, have become well-known for their ability to facilitate cross-border transactions. These digital assets are considered one of crypto’s first breakthrough mainstream use cases and present a contrast to CBDCs, which are controlled by a centralized entity, such as central banks.
Despite the rising adoption of stablecoins, many countries continue to pursue CBDCs. Hong Kong, a special administrative region of China, is advancing its stablecoin pilot program. In Europe, lawmakers across member states continue to push for a digital euro, while the United Arab Emirates expects to roll out the digital dirham by the end of 2025. Israel has also released a preliminary design for a digital shekel.
According to a Feb. 11 report from the Official Monetary and Financial Institutions Forum (OMFIF), CBDC interest is cooling among central banks, with 31% delaying implementation plans. Among the central banks, common concerns include regulation and economic conditions.
China began exploring the creation of a CBDC in 2014 and has plans to expand the digital yuan as a payment tool both internationally and domestically. The country has hoped to combat the US dollar’s role as the world’s reserve currency. The two countries had been mired in a trade war since Trump rolled out the tariffs.
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