Catenaa, Friday, June 20,2025- China central bank on Wednesday called for a global shift away from US dollar dominance, proposing a digital yuan-led monetary system as geopolitical tensions reshape cross-border finance.
Speaking at the Lujiazui Forum, People’s Bank of China Governor Pan Gongsheng unveiled a plan to establish an international operations center for the e-CNY in Shanghai, a move aimed at promoting the digital yuan’s overseas usage and expanding China’s influence in global transactions.
Pan said Beijing will also accelerate plans to launch yuan futures trading, giving international investors more tools to hedge against currency risk.
The initiative is part of a broader campaign to build what he called a “multi-polar international monetary system,” where several sovereign currencies coexist and act as checks on each other.
He argued that reliance on a single sovereign currency, notably the dollar, exposes global finance to politicization and unilateral sanctions.
Pan described traditional cross-border payment systems as “inefficient” and “vulnerable to geopolitical risk,” and promoted the potential role of IMF-issued Special Drawing Rights as an alternative, albeit with limited current support.
The announcement comes amid renewed volatility in global currency markets following President Donald Trump’s return to office.
Trump has recently expressed strong support for cryptocurrencies, framing them as strategic tools to counter China’s ambitions in digital finance.
China has spent years working to internationalize the yuan. With e-CNY pilots already underway domestically, the latest announcement marks Beijing’s clearest statement yet of its intent to remake the global monetary order.
