China has taken a new step in its strategy to expand the use of its digital currency, with the inauguration of an operations center in Shanghai.
The management of the center will be in charge of the Institute of Digital Currency of the Popular Bank of China, responsible for designing and maintaining the cross-border infrastructure of the E-CNY.
In this way, the entity will be dedicated to guaranteeing the connection of the project with both national and international financial systems, as well as promoting the development of the financial market linked to it.
Within the framework of this opening, The Popular Bank of China highlighted three key initiatives to boost the internationalization of its CBDC (Central Bank Digital).
The first is a digital cross-border payment platform, designed to explore the use of E-CNY and increase the efficiency of international transactions.
The second is a service platform that will allow payments directly on-chain and standardize the transfer of information between different spaces.
Finally, the third is A digital asset system that will help expand existing financial infrastructureoffering standardized and ready -to -use cryptocurrency services.
“The development of monetary systems and payments in the digital age is an inevitable historical trend,” said Lu Lei, vice -governor of the Popular Bank of China (PBOC), during a press conference.
The E-CNY International Operating Center too It will serve as a engine to consolidate Shanghai as a global financial space. According to Wu Wei, ViceAlcalde Executive of the city, Shanghai will take advantage The platforms and services of the place to continuously expand the use cases of the Yuan Digital and enhance their level of adoption and internationalization.
It should be noted that China was one of the first economies to introduce a digital currency issued by its central bank, with pilots initiated in 2019 in some selected cities.
Until now, E-CNY is mainly used for daily paymentssuch as public transport, wages, retail purchases and government transfers.
However, last April it was announced that the Asian giant launched a cross -border liquidation system based on its CBDC, connecting 16 countries in the Middle Asean and Oriente.
The initiative included nations such as Brunei, Cambodia, the Philippines, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, among others.
The measure was implemented in commercial tensions with the United Statesa country that imposed tariffs on much of these territories, and was reported by cryptootics.
It is largely due to commercial and technological tensions with the United States, which Beijing has reinforced its efforts to promote the international adoption of Yuan Digital and consolidate Shanghai as a global financial center.
“The opening of the center in Shanghai will not only expedite international payments, but also strengthens the role of the city as a global financial center,” said Lu.
It is worth clarifying that the opening of this center had already been anticipated in June, when PAN GongSheng, governor of the Popular Bank of China, said that digital technologies have revealed the limitations of traditional international systems of international payments, which are vulnerable to political influences and unilateral sanctions.
The official said that Beijing seeks a multipolar monetary system, where several currencies can coexist with prominence, increasing the resilience of international trade against shocks and geopolitical pressures.
Digital money and loss of financial autonomy
It is important to note that, when it comes to a CBDC, the issuing government maintains total control over the currency and has access to the records of all operations carried out by users.
This means that each transaction, from daily payments to international transfers, can be monitored and registered, which raises questions about individual privacy and centralized financial supervision.
With total access, A government could freeze accounts or block transactions from individuals or companies No need for immediate judicial intervention, something that does not happen with traditional cash -based monetary systems.