China’s Central Bank Pushes e-CNY Globalization with New Shanghai-Based Operations Center

China is stepping up efforts to expand the global influence of its central bank digital currency (CBDC), the Digital Yuan (e-CNY), with the People’s Bank of China (PBOC) announcing the establishment of a e-CNY International Operations Center in Shanghai.

This announcement was made by PBOC Governor Pan Gongsheng during the 2025 Lujiazui Forum, where he outlined a series of measures aimed at cementing Shanghai’s role as a global financial hub.

Pan highlighted the growing importance of digital currencies in reshaping cross-border payments and financial systems. "The global financial landscape is undergoing profound changes, and digital currencies, including stablecoins, are playing an increasingly significant role in cross-border transactions," Pan stated.

The new operations center in Shanghai will focus on advancing the international use of the e-CNY, particularly in cross-border payment systems, and supporting international financial market operations.

The e-CNY is widely regarded as one of the most advanced CBDCs in the world. Although the government has introduced various measures to support its rollout since the pilot began in 2019, adoption has remained a challenge.

Pan’s speech of the e-CNY International Operations Center reflects China’s determination to address these hurdles and enhance the currency’s global reach.By leveraging Shanghai’s status as a financial innovation hub, the PBOC aims to strengthen the e-CNY’s role in global trade and finance.

Pan noted that this initiative would enhance China’s ability to compete in the rapidly evolving digital finance ecosystem while addressing risks posed by unregulated digital assets.

Balancing Innovation and Risk: China’s Dual Approach to Digital Currencies

Meanwhile, Pan also warned about the lack of regulatory oversight over crypto assets. He emphasized the potential risks posed by unregulated digital currencies and stablecoins, which could undermine financial stability and create vulnerabilities in the global monetary system.

These remarks highlight the PBOC’s dual approach: promoting the state-backed e-CNY while maintaining strict oversight of private digital assets.

The Central Financial Committee further reinforced these efforts by releasing a policy document that outlines Shanghai’s long-term development as a global financial center. It places particular emphasis on enhancing financial infrastructure and openness, both of which are crucial for the e-CNY’s global adoption. Measures include strengthening cross-border payment systems for the Chinese yuan and developing blockchain-based financial tools to support trade and carbon reduction.

Pan concluded his remarks by emphasizing the importance of financial security as China opens up its financial markets. He highlighted the use of advanced technologies, such as blockchain and artificial intelligence, to enhance risk monitoring and ensure the stability of the financial system. "We must ensure that financial risks are effectively managed, especially as we embrace greater openness in global finance," Pan said.

The establishment of the e-CNY International Operations Center marks a significant step in China’s efforts to lead in the global digital currency race. By leveraging Shanghai’s financial infrastructure and innovation capacity, China aims to set new benchmarks for the integration of CBDCs into global trade and finance.