China launches international digital currency center
e-CNY in Shanghai to expand globally.
The governor of China's central bank says blockchain technology is accelerating the development of stablecoins and transforming cross-border payments, reshaping traditional systems through instant settlement while posing new regulatory challenges.
💰 What is e-CNY?
* It is the digital yuan issued by the People's Bank of China (PBoC).
* It represents an official digital currency, not a cryptocurrency like Bitcoin.
* It is directly backed by the Chinese government.
🎯 Objectives of the digital yuan:
* Reducing reliance on paper money (cash).
* Improving payment efficiency within China.
* Enhancing transparency and combating corruption and money laundering.
* Increasing financial control by the central bank.
* Competing with the dollar in the long term in international trade.
📱 How is it used?
- It can be used via the official e-CNY app.
- Or via e-wallet apps such as WeChat Pay and Alipay (in integrated versions).
- It is currently being used in several cities as part of expanded pilot programs.
🌍 Can the e-CNY be used globally?
China seeks to expand the use of the digital yuan in international trade, particularly in:
* Cross-border exchanges.
* "Belt and Road" projects.
* Displacing the dollar in some transactions.
* However, international use is currently limited and experimental.