Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

China to explore cross-border payments in digital yuan

EconomyJul 16, 2021 10:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
2/2 © Reuters. FILE PHOTO: A sign indicating digital yuan, also referred to as e-CNY, is pictured on a vending machine at a subway station in Shanghai, China April 21, 2021. REUTERS/Aly Song 2/2

BEIJING (Reuters) -China's central bank said on Friday it will explore cross-border payments in digital yuan, and is willing to discuss setting global standards for digital fiat currency to jointly develop the international monetary system.

The People's Bank of China (PBOC) will strengthen data security and personal information protection as it forges ahead with domestic testing of the digital yuan, it said in a white paper that is the first comprehensive disclosure of its plans.

China is a front-runner in the global race to launch central bank digital currencies (CBDC) and is testing a digital yuan, or e-CNY, in major cities including Shenzhen, Beijing and Shanghai but has not set a timetable for its official rollout.

Many analysts believe the e-CNY will bolster the currency's global status as China seeks ultimately to break the dominance of the dollar settlement system.

"The internationalisation of a currency is a natural result of market selection," the PBOC said in the white paper, downplaying its global ambition.

"Though technically ready for cross-border use, e-CNY is still designed mainly for domestic retail payments at present."

The PBOC said it will explore cross-border payment programs in coordination with other central banks, "preconditioned on mutual respect to monetary sovereignty and compliance".

The PBOC "is willing to participate actively in international exchanges of views on digital fiat currency and discuss standards setting ... in order to jointly advance the development of the international monetary system," it added.

The e-CNY digitalises a portion of China's physical notes and coins, and adopts a two-tier distribution system, under which PBOC issues the digital currency to banks, which pass the money to individuals and companies.


In an apparent attempt to ease concerns over government surveillance, the PBOC on Friday vowed to protect personal information and privacy, while also guarding against misuse of e-CNY in Internet gambling, money laundering and tax evasion.

The e-CNY system collects less transaction information than traditional payment, and does not provide information to third parties or other government agencies unless stipulated otherwise in laws and regulations, the PBOC said.

Internally, the PBOC sets up a firewall for e-CNY-related information, and strictly implements privacy protocols, it said.

The PBOC cited the rapid growth in cryptocurrencies, especially global stablecoins, as a driver for research and development of e-CNY.

Cryptocurrencies' lack of intrinsic value, acute price fluctuations, low trading efficiencies and huge energy consumption make them unfit for use in daily economic activities, the PBOC said in the white paper.

"In addition, cryptocurrencies are mostly speculative instruments, and therefore pose potential risks to financial security and social stability."

In late May, China's state council, or cabinet, vowed to crack down on bitcoin mining and trading activities, citing underlying financial risks.

China to explore cross-border payments in digital yuan

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Limin Tandiono
Limin Tandiono Jul 17, 2021 9:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China rise to become the world superpower is inevitable. Nothing to worry about. China is not a colonial country that seek to colonialize other countries. The only countries that worry are western countries. It reflects their own behaviour of believing the powerful countries must colonialize the less powerful ones, which they had did exaxtly in the past.
David David
David9 Jul 16, 2021 10:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I told you guys... forget all the sanction this and that on China... we forced them to go this path and I see they will be successful with their digital yuan... if this works, no more sanctions can work...
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email