- The People’s Bank of China opened a digital yuan office in Shanghai to manage cross-border payments using blockchain technology.
- China’s securities regulator has advised investment firms to halt real-world asset tokenization projects in Hong Kong due to risks.
China advances its digital currency project with the opening of a new office in Shanghai. The People’s Bank of China initiated operations this week.Â
Official statements indicate the center will facilitate connections between Chinese financial networks and international banks. Lu Lei, a deputy governor at the central bank, stated that basic systems for international digital yuan payments are already operational. The Shanghai office will concentrate on aiding trade settlements and business investments.
These efforts follow a policy direction set by bank governor Pan Gongsheng last June. The policy aims for greater openness in Chinese financial markets. A core objective involves positioning the yuan as an alternative to the US dollar in international finance.
Meanwhile, a separate regulatory movement is occurring. China’s securities regulator has advised certain investment firms to stop real-world asset tokenization work in Hong Kong.Â
Share prices for large Chinese investment firms with Hong Kong operations fell following reports of the guidance. Guotai Junan International and GF Securities recorded share price decreases ranging from 2% to 7.25%. The broader market declined by 0.9% on the same day.
This creates a contrast with Hong Kong’s push to become a digital asset hub. The city has spent the last year building a regulatory framework for virtual assets. China, however, banned cryptocurrency trading and mining in 2021.
