China is accelerating its push for the digital yuan (e-CNY) to the global stage. At the Lujiazui Forum, Pan Gongsheng, governor of the People's Bank of China, announced that a digital yuan international operations center will be established in Shanghai. The move marks an important step for China in the global digital currency competition and aims to enhance the influence of the digital yuan in international trade and settlement. At the same time, stablecoins and other digital payment technologies are reshaping the cross-border transaction landscape.

Strategic transformation towards globalization

The establishment of the Shanghai International Operations Center aims to promote the global application of the digital RMB. Since the launch of the pilot in 2019, the digital RMB has become one of the most technologically advanced central bank digital currencies (CBDC) in the world. However, its user adoption rate in China still faces challenges. Through the internationalization strategy, China hopes to expand the influence of the digital RMB in the global financial system, especially in the field of international trade and settlement.

Stablecoins and central bank digital currencies reshape cross-border payments

In his keynote speech, Pan Gongsheng pointed out that the application of blockchain, distributed ledger technology (DLT) and stablecoins in the payment field is becoming increasingly significant. These technologies shorten the transaction chain and achieve near-instant settlement, which completely subverts the inefficient model of the traditional international financial system. He also emphasized that the rise of decentralized finance (DeFi) and smart contracts has brought new regulatory challenges, and countries around the world need to remain vigilant.

Timing is key: US stablecoin bill intensifies competition

Governor Pan's speech coincided with the passage of the GENIUS Act by the U.S. Senate, which provides a clear regulatory framework for stablecoins and highlights the increasingly fierce competition for global digital currency leadership. Although China bans cryptocurrency trading and mining domestically, it continues to make efforts in the field of blockchain technology. Shanghai will also pilot new monetary instruments such as blockchain-based trade finance to further consolidate its position in the digital finance field.

Global regulation needs to be coordinated

Governor Pan warned that the current global regulation of crypto assets is still weak and fragmented, and some regulatory policies are driven by political factors rather than based on sound financial considerations. He called on countries to strengthen regulatory coordination to meet the challenges of the rapid development of digital finance.

JD.com enters the global stablecoin market

Meanwhile, Chinese e-commerce giant JD.com announced plans to apply for stablecoin licenses in major global markets to enter the crypto payment field. JD.com's goal is to significantly reduce cross-border settlement costs and time through stablecoins, initially targeting inter-enterprise transactions and expanding to the consumer market in the future. It is reported that the application of stablecoins is expected to reduce settlement costs by 90% and shorten transaction time to less than 10 seconds.

JD.com Chairman Richard Liu said the move was an important part of the company's strategy to reverse "stagnation in growth over the past five years". He noted that the stablecoin initiative echoes a surge in global interest in stablecoins, particularly driven by the passage of the GENIUS Act in the United States. Despite concerns that corporate issuance of stablecoins could pose privacy and surveillance risks, JD.com sees it as a key step in reviving its global market ambitions.

Conclusion

With the accelerated pace of digital RMB internationalization and the active layout of the stablecoin market by companies such as JD.com, China's ambition in the global digital financial field is becoming increasingly apparent. Against the backdrop of intensified global digital currency competition, China is striving to occupy a dominant position in the future financial landscape through technological innovation and policy leadership. However, the lack of global regulatory coordination remains a challenge that needs to be addressed. In the future, the coordinated development of digital RMB and stablecoins may inject new vitality into the global financial system.