In an op-ed published Monday, the People’s Daily stated that China intends to establish an international payment and settlement network for mobile payments using the digital yuan.
According to the op-ed, the network will be a “breakthrough moment” in the cross-border use of digital currency. According to the report, China also intends to use the digital yuan to strengthen monitoring and early warning capabilities for cross-border yuan movements.
According to the op-ed, the renminbi’s internationalization is both a requirement for economic growth and an inevitability given the country’s economic advancement, according to Song Ke, deputy director of the Renmin University of China’s Institute of International Monetary Studies.
Official Chinese authorities have been hesitant to discuss the central bank’s digital currency as a means of internationalizing the RMB. However, official planning papers such as the Five Year Plan say that internationalizing the national currency is one of the government’s aims.
Since the spring of 2020, China’s CBDC has been in testing and has been used in at least $5 billion in transactions, including some cross-border payments.