The People's Bank of China (PBOC) has made a notable advancement in its digital currency agenda by launching the Digital Yuan Operation and Management Center in Beijing, which complements its international operations base in Shanghai. This development, revealed by PBOC Governor Pan Gongsheng during the Financial Street Forum's Annual Conference, highlights Beijing's drive to strengthen its position as a leading global financial center and tighten oversight of digital financial activities, according toa Yicai Global report
The newly established Beijing center will be responsible for building, running, and maintaining the digital yuan system, as well as encouraging its integration into the country's financial infrastructure. Meanwhile, the Shanghai Digital Yuan International Operation Center, which began operations last month, is dedicated to cross-border payments and blockchain technology, aiming to boost the digital yuan's international presence. Pan noted that the digital yuan, which is official legal tender under PBOC supervision, has already developed a strong ecosystem, with pilot transactions surpassing 14.2 trillion yuan ($2 trillion) by September 30, and 225 million individual wallets in use.
The PBOC's efforts to promote the digital yuan come alongside its continued opposition to cryptocurrency trading. Governor Pan reiterated the current bans on
currency dealings, cautioning about the systemic threats posed by offshore stablecoins, especially in emerging markets. He referenced worldwide regulatory worries about compliance, anti-money laundering, and consumer safety, echoing themes from recent IMF and World Bank meetings where stablecoin risks were a major topic, as reported bya TradingView report. This approach supports China's broader goal of safeguarding monetary authority while advancing its government-backed digital currency.
The two-center structure demonstrates the PBOC's strategy to balance domestic digital innovation with international cooperation. The Beijing hub will work with market players to foster an open and accessible digital yuan environment, while the Shanghai center will support the development of cross-border financial systems. Pan also revealed intentions to broaden the digital yuan's reach by involving additional commercial banks, indicating a move toward wider adoption.
Since its initial pilot, China's digital yuan project has made consistent progress, with the PBOC now examining its place within monetary aggregates and seeking ways to enhance its function in the financial sector. At the same time, the central bank's rigorous enforcement of cryptocurrency restrictions—both within China and through global partnerships—demonstrates its resolve to limit speculative trading and provide regulatory certainty.
With the PBOC accelerating the digital yuan's deployment, this initiative may alter global perspectives on central bank digital currencies (CBDCs) and shape the future of digital finance. By merging technological progress with strict regulation, China is positioning itself as a leader in the evolution of modern monetary systems.
