Hong Kong Gateway: FPS system connects 17 banks, enabling 230% growth in foreign visitor digital yuan transactions.
mBridge Revolution: BIS-led system cuts settlement time from days to 30 minutes with 70% lower fees.
Global Expansion: 2027 target aims for digital yuan to become third-largest international payment currency worldwide.
China advances digital yuan cross-border applications through mBridge technology, reducing settlement times to 30 minutes while challenging traditional SWIFT dominance in global payments.
On June 10, 2025, the Central Committee of the Communist Party of China and the State Council jointly issued a groundbreaking policy document. The “Opinions on Deepening the Comprehensive Reform Pilot in Shenzhen to Deepen Reform, Innovation and Opening-up” clearly establishes ambitious new objectives. The policy specifically promotes “strengthening digital yuan pilot application scenario innovation, participating in multilateral central bank digital currency bridge project research, and exploring the applicability of central bank digital currency in cross-border fields.”
This comprehensive policy accelerates the digital yuan’s strategic transition from domestic pilots to global scenarios. More importantly, it represents a crucial milestone in China’s determined efforts to restructure international payment systems and advance yuan internationalization.
CROSS-BORDER PAYMENT FACILITATION: FROM “HONG KONG PILOT” TO GLOBAL COVERAGE
Digital yuan cross-border applications strategically use Hong Kong as a pivotal leverage point to access global markets. In January 2025, the People’s Bank of China collaborated closely with the Hong Kong Monetary Authority. Together, they successfully launched the innovative “Three Connections, Three Conveniences” policy framework. This groundbreaking initiative significantly expanded digital yuan cross-border pilot coverage to include Hong Kong residents.
Today, Hong Kong users need only local phone numbers to seamlessly open digital yuan wallets. They can efficiently recharge through the revolutionary “Faster Payment System” (FPS). This represents the world’s first fast payment platform directly connected to a central bank digital currency. The comprehensive system covers consumption scenarios throughout the Greater Bay Area and mainland pilot regions.
By April 2025, FPS had successfully registered 14.3752 million accounts cumulatively. The robust system now connects 17 major retail banks throughout Hong Kong. Cross-border payment efficiency has dramatically improved by over 60%.
This proven successful model is being systematically replicated across broader geographic regions. Shenzhen has strategically deployed digital yuan hardware wallet self-service machines at key border checkpoints. These innovative machines support foreign visitors in exchanging foreign cash for touchable, visible, and scannable hardware wallets. Meanwhile, Shanghai and Zhejiang provinces actively innovate through dynamic scenarios like “digital yuan + first launches” and “digital yuan + sports consumption vouchers.” These creative initiatives successfully attract international brands and tourists to adopt the digital currency.
Data shows remarkable growth in the first half of 2025. Foreign visitors to China completed consumption transactions through digital yuan with a 230% year-over-year increase.
TECHNOLOGICAL BREAKTHROUGH: MULTILATERAL CBDC BRIDGE REWRITES INTERNATIONAL SETTLEMENT RULES
The core technological breakthrough in digital yuan cross-border applications lies in the revolutionary Multilateral Central Bank Digital Currency Bridge (mBridge). This sophisticated system, led by the Bank for International Settlements (BIS) and jointly developed by four central banks including China, directly compresses cross-border settlement time. Traditional SWIFT transactions typically require 2-3 days, while mBridge efficiently completes them in just 30 minutes. Additionally, transaction fees decrease dramatically by over 70%.
For example, a Shenzhen bonded maintenance enterprise successfully completed cross-border settlement through mBridge technology. The single transaction cost dropped significantly by 15%.
The more profound impact fundamentally concerns rule-making authority in global finance. mBridge strategically bypasses the SWIFT system entirely. It supports direct exchange between digital yuan and central bank digital currencies from Thailand, UAE, and other participating nations. This revolutionary approach provides developing countries with viable new options to avoid US dollar hegemony.
In April 2025, Shenzhen successfully completed its first cross-border tax payment through this innovative system. Funds arrived within just 10 minutes, definitively validating the technical feasibility. The Bank for International Settlements officially calls this model “a milestone in digital currency cross-border settlement.” The comprehensive system is expected to cover all 10 ASEAN countries by the end of 2025.
SCENARIO INNOVATION: FROM “LIVELIHOOD INCLUSION” TO “GREEN FINANCE”
Digital yuan cross-border applications extend far beyond simple payment tools. They integrate deeply into the real economy and global governance through multiple sophisticated channels.
Green Finance Empowering Low-Carbon Economy
Postal Savings Bank of China successfully launched the innovative “Green G-Discount” product. This groundbreaking innovation combines digital yuan with green bill discounting to provide accessible low-interest financing for carbon-neutral enterprises. Meanwhile, Shenzhen Emissions Exchange completed the first carbon quota settlement using digital yuan technology. This development promotes synergy between environmental value and economic incentives.
Inclusive Finance Activating SME Ecosystems
Digital yuan smart contract technology applies effectively to supply chain finance. One leading platform uses an innovative “payment upon delivery” model that reduces SME financing costs by 30%. The non-performing loan rate consistently stays below 0.8%. In county-level rural areas, digital yuan covers 78% of agricultural subsidy distributions and agricultural product sales scenarios.
Livelihood Services Breaking International Barriers
Foreign visitors to China can directly bind overseas bank cards like Visa and Mastercard through the digital yuan app. They can open anonymous wallets covering high-frequency scenarios including transportation, shopping, and accommodation. Shenzhen Cultural Expo even uses digital yuan for international cultural relic repatriation payments, simplifying foreign exchange approval processes.
CHALLENGES AND FUTURE: THE JOURNEY FROM “TEST FIELD” TO “GLOBAL CURRENCY”
Despite significant progress, digital yuan cross-border applications face three major challenges.
Technical Security Risks
In 2024, a bank suffered hacker attacks due to smart contract vulnerabilities. Losses exceeded 30 million yuan, exposing security risks in decentralized architectures.
International Gaming Pressure
The US Treasury Department warns that expanded digital yuan cross-border applications may trigger secondary sanctions against participating countries. This represents an attempt to contain its potential to replace the US dollar.
User Habit Barriers
Surveys show that only 38% of cross-border traders willingly use digital yuan proactively. Convenience and stability require further improvement.
However, the policy roadmap remains clear. By 2026, China will launch digital yuan cross-border futures and options products. The 2027 target aims to make it the world’s third-largest international payment currency. Cross-border payment share should increase to 30%. Shenzhen plans to build the world’s first digital yuan offshore trading center. It will issue digital yuan bonds (e-CNY Bonds) and promote Hong Kong virtual asset interconnection with Shenzhen.
CONCLUSION: A “SILENT REVOLUTION” REWRITING GLOBAL FINANCIAL RULES
When digital yuan advances from “Shenzhen pilot” to “cross-border breakthrough,” its significance transcends technological upgrades. It serves as China’s “strategic weapon” in global financial governance. It also provides developing countries with a “new option” to break US dollar monopoly.
As PBOC Deputy Governor Fan Yifei states: “We want yuan to flow like water to every corner of the world.” This revolution, driven by policy, technology, and scenarios together, may quietly rewrite world financial history.
〈China’s Policy Push for Digital Yuan Cross-Border Applications: A Global Financial “Wall-Breaking” Experiment〉這篇文章最早發佈於《CoinRank》。