The headquarters of the People's Bank of China in Beijing Photo: IC

China's international operation center for digital yuan was officially launched in Shanghai on Thursday, the Xinhua News Agency reported, citing the People's Bank of China (PBC), China's central bank.

Three core operational platforms - the digital yuan cross-border digital payment platform, the digital yuan blockchain service platform and a digital asset platform - were launched on the same day.

The new digital yuan hub will oversee the development and operation of cross-border payment systems and blockchain infrastructure, while also promoting connectivity between domestic and international financial networks.

A Chinese analyst said that the initiative aims to strengthen the integration of the digital currency into both the domestic and international financial systems.

Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday that the launch of the center and the three major business platforms is a significant step along the path to achieving innovative breakthroughs in the financial sector, which are expected to enhance China's competitiveness in the global financing industry and promote the reform and development of the financial sector.

The move accurately addresses the pain point of traditional cross-border payments by improving the efficiency of cross-border transactions, and providing more convenient payment solutions for international trade and financial exchanges, thereby promoting the smooth development of global trade, Wang said.

According to Wang, the digital yuan blockchain service platform builds a bridge for the deep application of blockchain technology in the financial sector by providing standardized cross-chain transaction information transfers and on-chain payment services, helping dismantle barriers among different blockchains and promoting the landing application of blockchain technology in more scenarios and industries.

In June, PBC Governor Pan Gongsheng said at the Lujiazui Forum in Shanghai that the country will establish an international operation center for digital yuan, with the aim of promoting the internationalization of the digital currency and the development of financial market services while supporting innovation in digital finance.

Attending a meeting on Wednesday, PBC Deputy Governor Lu Lei explained that principles of "no disruption, compliance and interoperability" put forward by the PBC have become the fundamental criteria for building cross-border infrastructure for central bank digital currencies, and a cross-border financial infrastructure system for digital yuan has now been initially established.

China's digital yuan transactions amounted to 7 trillion yuan ($986 billion) as of the end of June this year, Lu told a press conference on September 4.