Shanghai hub as a driver of the digital currency of the future

China continues to actively develop its digital currency — the digital yuan (e-CNY), opening a specialized operational center in Shanghai aimed at accelerating its integration into the global financial system. The initiative is supported by the People's Bank of China, which called the launch of the hub a 'strategic step' towards strengthening the international role of the national currency.

What will the new center do?

The main areas of activity of the Shanghai hub cover three key spheres:

• organization of cross-border payments;
• development of blockchain infrastructure;
• creation of platforms for managing digital assets.

According to data from the Xinhua news agency, the center already includes three functional blocks: an international payment platform, a blockchain ecosystem, and a digital platform for working with new generation assets.

'Chinese solution' for global finance

Experts see the new center not just as a technical platform, but as part of a larger strategy. Tian Xuan, head of the National Institute of Financial Research at Tsinghua University, emphasized that the project could become a catalyst for forming an alternative financial architecture. According to him, it is about a 'Chinese solution' — a model capable of strengthening the yuan's position on the international stage and modernizing the cross-border payment infrastructure.

Digital yuan against the dollar: strategic goal

One of the main tasks of the digital yuan is to reduce the dominance of the US dollar in global trade and finance. Chinese authorities aim to make their currency more attractive to international partners, especially in the context of increasing geopolitical tensions and sanctions pressure. The digital form of the yuan is seen as a tool that can simplify transactions, increase transparency of operations, and reduce dependence on Western payment systems.

Stablecoins pegged to the yuan: an unexpected turn

Notably, against the backdrop of a strict ban on cryptocurrencies and mining imposed in 2021, Chinese regulators are now seriously considering the possibility of issuing stablecoins pegged to the yuan. In August 2025, media reports emerged that relevant agencies are exploring options for legalizing such digital instruments — but exclusively for the purpose of supporting the international use of the national currency. This indicates a flexible approach from Beijing: while banning speculative crypto assets, the country is simultaneously developing controlled digital financial instruments that align with its strategic interests.

This approach allows China not only to follow the trends of digitalization but also to shape its own rules of the game in the new era of global finance.