China Inaugurates Digital Yuan Operation Centre to Push CBDC Integration: Report

Core Viewpoint - China is advancing its digital currency initiative by establishing an international operations center for the digital yuan (e-CNY) in Shanghai, aiming to enhance its global presence in digital payments [1][2]. Group 1: Digital Currency Initiative - The People's Bank of China (PBOC) has launched an international operations center for the digital yuan, marking a significant step in its global digital currency strategy [1]. - PBOC Deputy Governor Lu Lei described the initiative as a response to the "historical inevitability" of payment innovations, focusing on creating a more efficient and inclusive global cross-border payment system [2]. - The initiative aims to improve settlement efficiency and lay the groundwork for broader integration of the e-CNY [2]. Group 2: Regulatory Context - The push for China's central bank digital currency (CBDC) comes amid a regulatory pause on tokenization efforts, as the securities regulator has advised brokerages to halt their real-world asset (RWA) tokenization activities in Hong Kong [3].