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Key Points: Lu Lei outlines the digital yuan’s attributes and future direction. The digital yuan aims to integrate with the global financial system. Impacts on cross-border payments highlighted in PBOC discussions. Lu Lei of the People’s Bank of China announced plans for a modern digital yuan with central bank support, promising advanced cross-border functionality and compatibility with distributed ledger technology. This move aims to enhance the digital yuan’s role, catering to diverse economic scenarios and reducing dependence on the USD, significantly influencing global financial systems. Digital Yuan’s Role in China’s Financial Strategy Unveiled Lu Lei’s statement highlights the envisioned future of the digital yuan as a central bank digital currency (CBDC) with attributes similar to commercial bank liabilities, based on account compatibility with distributed ledger technology. The PBOC will guide this digital currency’s development to meet real economy needs while focusing on inclusiveness and prudence in technology adoption. Immediate implications include the digital yuan’s role in cross-border payments, serving as a measure and store of value. This aligns with China’s broader financial strategies, emphasizing technological integration within the global financial landscape. Market reactions remain muted, as detailed specifics on tangible asset impacts were not disclosed. However, China’s long-standing crypto bans and focus on CBDC development hint at ongoing pressures in the sector. With a history of implementing frameworks like “AI + Finance,” prominent financial figures have yet to publicly respond to Lu Lei’s insights. Lu Lei, Vice Governor of the People’s Bank of China (PBOC), overseeing digital currency initiatives including the digital yuan, stated there is a “Historical inevitability in payments innovation to enhance cross-border efficiency.” China’s Digital Yuan International Operations Center: A Milestone in 2025 Did you know? The launch of the digital yuan international operations center in Shanghai during September 2025 marked a significant milestone for China’s CBDC…

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Filed under: News - @ December 29, 2025 1:22 am