- PBOC governor says blockchain is transforming payment infrastructure.
- China plans to expand the digital yuan globally with a Shanghai center.
- Officials urge a multi-currency system to reduce reliance on the U.S. dollar.
The governor of the People’s Bank of China (PBOC), Pan Gongsheng, delivered a powerful message on the future of finance, stating that blockchain technology and the rise of stablecoins are fundamentally transforming global payment systems while creating new regulatory hurdles.
Blockchain Advances Payments, Raises Oversight Concerns
On Tuesday, the People’s Bank of China (PBOC) governor stated that blockchain technology is playing a key role in reshaping traditional financial systems. Speaking at the Lujiazui Forum in Shanghai, he noted that blockchain is speeding up the development of stablecoins and enabling faster, more efficient cross-border payments.
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The governor added that this innovation marks a major transition from traditional payment systems, which often rely on intermediaries and have lengthy processing times.
According to the PBOC chief, these changes could improve global payment efficiency, lower costs, and increase financial inclusion. However, he warned that the same technologies also pose new challenges for regulators.
Digital Yuan Gains Ground
The push for the digital yuan comes amid declining confidence in U.S. assets, driven by trade tensions and tariff policies. Gongsheng said a multi-polar currency system, where several global currencies coexist, can reduce systemic risks and enhance global financial stability.
“Developing a multi-polar international monetary system will help strengthen policy constraints on sovereign currency countries,” he said.
China will establish an international operations center for e-CNY in Shanghai to expand the yuan’s presence in global markets.
Meanwhile, six foreign banks, including Standard Bank and First Abu Dhabi Bank, agreed to adopt China’s Cross-Border Interbank Payment System (CIPS), a yuan-based settlement platform.
Gongsheng noted that traditional cross-border systems are vulnerable to geopolitical risks and can be politicized.
Foreign Investment and Market Reforms
Notably, China’s foreign exchange regulator said the country will keep the yuan stable and guard against external shocks. Li Yunze, director of the National Financial Regulatory Administration, pledged further market access for foreign institutions.
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“Foreign institutions are key to building a modern financial system,” Li said. China plans to create a more transparent and predictable environment to attract global investment.
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