Following this announcement, China is expected to establish an international operation centre for e-CNY in Shanghai, according to People's Bank of China officials.
The initiative comes in the wake of the renewed demand for a global CNY, as international trade tensions sparked by the US tariff policies prompt investors to seek alternatives to dollar-based investments.
Through this plan, China aims to focus on accelerating the efforts of developing financial systems independent of Western institutions, while moves that have gained fresh impetus as shifting trade patterns and geopolitical realignments are set to develop the global economic landscape. The process of designing a multi-polar international monetary system is expected to help strengthen policy constraints on sovereign currency countries, improve the resilience of the system, and optimise safeguards for global financial stability.
As traditional cross-border payment infrastructures can be easily politicised and weaponised, as well as used as a tool for unilateral sanctions, damaging the global economic and financial order, China has long aimed for the CNY to be a global currency. At the same time, China is expected to develop a transparent, stable, and predictable environment for foreign players, while also exploring options to open up a wider range of financial areas.
In addition, China's foreign exchange regulator is set to keep the CNY exchange rate stable and fend off external shocks and risks, while Beijing will further open up its financial market to foreign players as well. The initiative is expected to develop some currencies in their respective regions, lessening the overall reliance on the USD, while officials of the People's Bank of China expect several key global currencies to coexist in mutual competition with balances and checks in place.
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