China’s digital yuan, one of the first central bank digital currencies (CBDCs) to be developed and tested, is expanding its use cases for cross-border trades and its Belt and Road Initiative. While there has been no official launch, the government has widened testing parameters to include multiple cities and millions of people. The city of Xuzhou, a trade hub with 18 regular cross-border rail connections to 21 nations in Asia and Europe, issued a plan to promote the use of the digital yuan in cross-border trade. The experiment aims to extend usage to pay taxes and utility services in the city in the future.
Other cities, such as Changshu, have also been proactive in promoting digital yuan use cases. The Chinese government has increased its CBDC efforts as international trade markets move away from the U.S. dollar, with China completing multiple trade treaties based on national currencies over the U.S. dollar.
