Shanghai’s new e-CNY operations center is China’s answer to the stablecoin-led disruption of cross-border finance, signaling that the digital yuan isn’t just for domestic trials anymore, but for an open audition on the global economic stage.
On June 18, People’s Bank of China Governor Pan Gongsheng took the stage at Shanghai’s Lujiazui Forum to unveil what may become the digital yuan’s most consequential maneuver yet.
Among eight sweeping reforms, the establishment of an e-CNY international operations center stood out, designed to pilot blockchain-based trade finance tools and streamline cross-border settlements.
Pan was deliberate in his speech. While acknowledging that stablecoins and CBDCs are “reshaping traditional payment infrastructure,” he positioned the digital yuan as something distinct: a state-backed alternative that leverages blockchain’s efficiency while rejecting its decentralization ethos.
From domestic trials to global playbook
The establishment of Shanghai’s international e-CNY hub is more than just a pilot program. It marks China recalibrating its digital currency strategy in the face of slowing domestic traction and a shifting global financial order.
Despite four years of pilots across 29 cities, the digital yuan remains a niche product within China’s vast payment ecosystem. As of mid-2025, e-CNY transactions accounted for just 0.16% of China’s total payment volume, dwarfed by Alipay and WeChat Pay, which dominate daily commerce. Even state-backed incentives, like expiring cash airdrops to spur usage, have failed to shift consumer habits.
Yet, Beijing isn’t retreating, it’s pivoting. China views CBDCs as a long-term infrastructure play, not a quick retail win. The Shanghai hub signals a shift in focus from convincing street vendors to accept e-CNY to rewriting the rules of cross-border trade finance.
In his speech, Pan tied the digital yuan to a broader vision of monetary multipolarity, where no single currency dominates global trade and finance:
“The development of the international monetary system towards multipolarity will help promote sovereign currency countries to strengthen policy constraints, enhance the resilience of the international monetary system, and more effectively maintain global economic and financial stability.” Pan said in a translated statement.
The governor made clear this isn’t just about currency politics. He emphasized how emerging technologies enable faster payment settlements. By integrating smart contracts into cross-border transactions, China aims to harness blockchain’s speed while maintaining centralized oversight.
This hybrid approach targets stablecoins’ core appeal, instant settlements, while rejecting what Pan described as their “insufficient regulatory oversight.” The gamble? That developing economies will trade crypto’s openness for China’s promise of dollar-free, real-time infrastructure.
