International operation center of e-CNY begins work

The international operation center of the digital yuan, or e-CNY, has officially begun operations, the People's Bank of China said on Thursday, marking China's latest step in providing innovative solutions for cross-border payments.

The central bank said that a promotional event in Shanghai was held on Wednesday, where relevant institutions were briefed on the functions of the e-CNY cross-border digital payment platform, blockchain service platform, and digital asset platform.

The PBOC said this has marked the official commencement of the international operation center of e-CNY, after PBOC Governor Pan Gongsheng announced the plan to establish the center in June. 

Lu Lei, vice-governor of the PBOC, said at the event that the center is expected to facilitate cross-border payments while strengthening Shanghai's core functions as an international financial hub, adding that the upgrade of currency and payment systems in the digital era is "an inevitable trend of history".

Lu said the PBOC is committed to offering open, inclusive and innovative solutions to improve global cross-border payment systems, with the principles it proposed — being lossless, compliant and interoperable — have become key standards in building cross-border infrastructure for central bank digital currencies, or CBDCs.

The center will be managed by the Digital Currency Institute of the PBOC, which is in charge of developing the cross-border and blockchain infrastructure for e-CNY, promoting connectivity with domestic and overseas financial systems, and advancing the international operation and financial market business development of the digital yuan.