The People’s Bank of China to Establish an International Operation Center for Digital Currency, Governor Discusses the Impact of Stablecoins on Cross-Border Payments

Chinese Central Bank Governor Announces Digital Renminbi International Operations Center in Shanghai

The Governor of the People’s Bank of China, Pan Gongsheng, announced today (18th) plans to establish a Digital Renminbi International Operations Center in Shanghai to expand the global influence of the Renminbi. He pointed out that stablecoins and Central Bank Digital Currencies (CBDC) are reshaping the global payment infrastructure.

Advancing Internationalization of Digital Renminbi

At the 2025 Lujiazui Forum, Pan Gongsheng stated that the new Digital Renminbi center aims to promote the international operation and financial market business development of the Digital Renminbi, serving digital financial innovation. This initiative is one of the eight key financial policies he announced at the forum.

Challenges in Adoption of Digital Renminbi

The Digital Renminbi is widely regarded as one of the most advanced CBDCs globally. Despite numerous supportive measures launched by the Chinese government since the pilot program began in 2019, the adoption of the Digital Renminbi still faces challenges.

Emerging Technologies in Cross-Border Payments

In his keynote speech, Pan Gongsheng highlighted that the application of emerging technologies in the field of cross-border payments is accelerating, including blockchain and Distributed Ledger Technology (DLT). He stated:

Structural Monetary Policy Tools in Shanghai

As one of the eight policies proposed today, the city of Shanghai plans to pilot a series of structural monetary policy tools, including blockchain-based trade financing instruments. Meanwhile, he also warned about the insufficient regulation in the field of crypto assets:

Regulation of Decentralized Finance and Stablecoins

Although Chinese authorities have actively embraced blockchain technology, the People’s Bank of China rarely discusses the financial implications of decentralized finance (DeFi) and stablecoins publicly. China currently still prohibits cryptocurrency trading and mining activities within its borders.

Tension with U.S. Stablecoin Legislation

The remarks from the Governor of the Central Bank come after the U.S. Senate passed a key stablecoin regulatory bill on Tuesday, which will be further reviewed by the House of Representatives. U.S. Treasury Secretary Scott Bessent stated that stablecoin legislation would “create a market that can expand the use of the dollar globally through these stablecoins,” and believes a market size of two trillion dollars for dollar-backed stablecoins is “a very reasonable figure.”