China has established an international operations center for the digital yuan. Seeking to reduce its reliance on the dollar, China plans to use this center to encourage cross-border use of the digital yuan.
The People's Bank of China, the country's Central Bank, said on the 26th on its website that the international operations center for the digital yuan in Shanghai has officially begun operations. The center promotes to relevant institutions the functions of a cross-border payment platform, a blockchain service platform, and a digital asset platform designed to internationalize the digital yuan.
Deputy Governor Lu Lei of the People's Bank of China said, "The cross-border financial infrastructure system for the digital yuan is already in the initial construction stage," noting, "Building a business platform in Shanghai is a concrete step to facilitate cross-border payments." Earlier, Governor Pan Gongsheng of the People's Bank of China announced plans related to the center at the Lujiazui Forum, China's largest economic and financial event, held in Shanghai in June.
The South China Morning Post (SCMP) in Hong Kong analyzed, "Amid the global craze for stablecoins, China is proposing an alternative and stepping up efforts to promote cross-border settlement and overseas use of the digital yuan," adding, "It seeks to reshape the global financial architecture currently led by the U.S. dollar."