China is launching National Center to roll out Digital Yuan on a large scale

China has opened an international surgical center in Shanghai for the Digital Yuan (CBDC), also known as e-CNY. The step of the central bank raises the question of whether this is the start of a broader international rollout of the digital currency.

China is looking for an alternative to dollar in cross -border payments

According to the People’s Bank of China (PBOC), the center must contribute to a more efficient and more inclusive payment traffic. PBOC-Vicegouverneur Lu Lei called development a “historical inevitability” and spoke about the need for innovation in payment systems. Nevertheless, it remains unclear whether other countries are willing to integrate the digital yuan into their financial systems.

The new center in Shanghai is presented as a foundation for a future framework in which the digital Yuan can play a greater role. This tries to position China de Munt as an alternative to existing international payment structures, which often depend on the US dollar.

The launch comes at a time when China put on the brakes elsewhere elsewhere. At the beginning of this week, the Chinese stock market watchdog warned some brokerages in Hong Kong to stop their activities on Tokenization of Real-World Assets (RWAs) for the time being. This suggests that the government continues to monitor new financial technologies that fall outside its direct sphere of influence.

International acceptance remains the biggest issue

The E-CNY has been tested for several years in Chinese cities and at large events, such as the Winter Olympics in 2022. The currency can be used for everyday payments, but is also seen by the Central Bank as an instrument to make cross-border transactions faster and cheaper.

The opening of the center in Shanghai shows that Beijing does not limit the ambitions for the e-CNY to domestic applications. Nevertheless, the question remains whether this initiative actually leads to broader acceptance outside the national borders. For the time being, the digital yuan seems to be a geopolitics instrument, the success of which will depend on the willingness of trading partners to include the currency in their systems.