PBoC's Digital Yuan Hub Targets Dollar Dominance in Global Payments

The People's Bank of China (PBoC) has taken a significant step in advancing the internationalization of the digital yuan by establishing the Digital RMB International Operations Center in Beijing, signaling a strategic push to solidify the currency's global role. This new center, paired with an existing Domestic Operations Management Center, forms a "two-wing" structure designed to bolster both domestic infrastructure and cross-border integration for the digital RMB. The move aligns with broader efforts to challenge the U.S. dollar's dominance in global payments and expand the yuan's presence in international trade, according to a Crypto.News report.

The International Operations Center will focus on building blockchain-based infrastructure to facilitate cross-border transactions, while the Domestic Operations Center will prioritize enhancing local systems through new technologies and ensuring sustainable growth within China's financial framework. This dual approach aims to create a cohesive ecosystem for the digital yuan, enabling seamless domestic and international use. According to a report by Capital Finance, PBoC Governor Pan Gosheng emphasized the center's role in constructing and maintaining the digital RMB system, while also supporting Beijing's ambitions to become a national financial hub.

The initiative comes amid regulatory crackdowns on private-sector stablecoin projects. In August 2025, Hong Kong introduced a licensing regime for stablecoins, prompting Chinese tech giants like Alibaba and JD.com to apply for issuance licenses. However, PBoC and the Cyberspace Administration of China (CAC) recently ordered these companies to suspend their plans, citing concerns over monetary sovereignty and competition with the digital yuan, according to a CoinGeek report.

This regulatory intervention underscores China's strategic focus on maintaining centralized oversight of its digital currency ecosystem. While stablecoins could enable faster and cheaper cross-border payments, PBoC officials have emphasized the risks of allowing private entities to issue or control currency. The central bank's stance mirrors global regulatory caution, as seen in the U.S. and Europe's responses to Meta's Diem project. Despite this, China's long-term goal remains to integrate the digital yuan into international payment systems, particularly with ASEAN and BRICS nations.

The PBoC's efforts are part of a broader push to standardize the yuan's use in cross-border transactions. Recent collaborations, such as Sinopec and BASF's mutual recognition of carbon footprint accounting methods, highlight China's growing influence in setting industry benchmarks. While unrelated to digital currency, such initiatives reflect the country's broader strategy to position itself as a leader in global financial and environmental standards, according to a Yahoo Finance article.

As the digital RMB gains traction, the PBoC's dual-center model and regulatory actions signal a clear intent to control the narrative around its international adoption. With cross-border infrastructure and strategic partnerships in focus, the yuan's global reach could expand significantly in the coming years.