China is intensifying efforts to globalize its digital renminbi. In a significant policy revelation at the Lujiazui Forum, People's Bank of China (PBOC) Governor Pan Gongsheng announced the launch of an international operational center for e-CNY in Shanghai.
This move signals China's greater ambition to promote the presence of the digital renminbi globally, just as stablecoins and other digital payment technologies begin to reshape cross-border transactions.
A strategic shift towards globalization
The center based in Shanghai will aim to enhance the use of e-CNY internationally, which has been piloted since 2019. Although it is one of the most technically advanced central bank digital currencies (CBDC), e-CNY still faces challenges in domestic user adoption. By reaching out globally, China seems to intend to expand its financial footprint, particularly in international trade and payments.
Stablecoins and CBDCs reshape cross-border payments
In his keynote address, Pan acknowledged the growing influence of blockchain, distributed ledger technology (DLT), and stablecoins in the payments world. He emphasized that these tools are shortening transaction chains and enabling near-instantaneous payments, effectively restructuring the outdated systems dominating international finance. He also pointed out the regulatory concerns they bring, especially as DeFi and smart contracts become increasingly popular.
Critical moment: U.S. Stablecoin bill adds pressure
Pan's comments came just a day after the U.S. Senate passed the GENIUS Act, a major stablecoin regulatory bill, indicating an ongoing global race for leadership in digital currency. While China bans domestic cryptocurrency trading and mining, it continues to rely on blockchain innovations, with Shanghai also preparing to test new monetary tools, including blockchain-based trade finance.
A cautious warning
Pan also raised a red flag about fragmented global regulation. He noted that oversight of cryptocurrency assets remains weak and inconsistent, often influenced by political agendas rather than sound policy. His call reinforces the urgent need for regulatory coordination as digital finance evolves at a rapid pace.
Chinese e-commerce giant targets global Stablecoin license
JD.com is making a major move in cryptocurrency payments, announcing plans to seek stablecoin licenses in major global markets. This Chinese e-commerce giant aims to cut cross-border payment costs and time by up to 90% and under 10 seconds, starting with business-to-business transactions before expanding to consumers.
Chairman Richard Liu has presented this initiative as part of JD's recovery strategy after what he calls a 'lost five years' of stagnant growth and innovation. This move aligns with the growing global interest in stablecoins, highlighted by the recent passage of the GENIUS Act by the U.S. Senate. While some warn about the risks of corporate oversight, JD sees stablecoins as key to restoring its global ambitions.
