The governor of China’s central bank committed to increasing the global adoption of the digital Yuan and advocated for creating a multi-currency global financial system, where multiple currencies play leading roles in the world economy.
Pan Gongsheng, head of the People’s Bank of China, announced on Wednesday at the Lujiazui Forum that China will set up an international operations centre for the e-CNY in Shanghai.
These comments follow a growing interest in a global Yuan, driven by renewed trade tensions caused by US tariff policies, which are encouraging investors to look for alternatives to Dollar-denominated assets.
Meanwhile, China is speeding up the development of financial systems that operate independently of Western institutions, a push that has gained momentum amid changing trade dynamics and geopolitical shifts reshaping the global economy, Reuters reports.
“Developing a multi-polar international monetary system will help strengthen policy constraints on sovereign currency countries, enhance the resilience of the system, and better safeguard global financial stability,” Pan stated.
Such a system would allow certain currencies to dominate their own regions, reducing dependence on the US Dollar.
Pan envisions multiple major global currencies coexisting in a competitive yet balanced framework.
The turbulent and forceful implementation of tariffs by Washington has undermined confidence in the US Dollar and other American assets, leading investors to increasingly diversify away from the Dollar and toward Asian currencies and the Euro.
The declining appeal of the greenback coincides with growing global interest in cryptocurrencies, including stablecoins.
China has long aimed for the Yuan to become a major global currency, on par with the Euro and Dollar, reflecting its status as the world’s second-largest economy.
On Wednesday, six foreign banks, including Standard Bank and First Abu Dhabi Bank, agreed to adopt China’s Cross-Border Interbank Payment System (CIPS), the Yuan-based international settlement platform, according to state broadcaster CCTV. This move marks a significant step in broadening the Yuan’s role in global trade.
Pan stated that digital technologies have revealed shortcomings in traditional cross-border payment systems, which tend to be less efficient and more susceptible to geopolitical risks.
“Traditional cross-border payment infrastructures can be easily politicised and weaponised, and used as a tool for unilateral sanctions, damaging global economic and financial order,” Pan said.
In addition, Beijing plans to further liberalise its financial market to foreign participants, Li Yunze, director of the National Financial Regulatory Administration, announced at the forum.
“Foreign institutions are important bridges and links for attracting investment, talent, and are important participants and active contributors to the construction of China's modern financial system,” Li said.
China aims to establish a transparent, stable, and predictable environment for foreign investors and will consider expanding access to a broader range of financial sectors, Li added.