This week, the main bank of China opened a digital Yuan office in Shanghai, part of the country’s plan to get more countries that uses money around the world.
The People’s Bank of China has built this new center for Run’s payment systems that work across borders and blockchain technology. The goal is to connect China’s Money Networks with banks in other countries, according to Xinhua News Agency reports on Thursday.
Lu Lei, who works as a deputy governor at the bank, said they already have basic systems ready for digital yuan payments between countries. The Shanghai office will help with trade agreements, business investments and new digital money services, while it is more connected between the Chinese banks and those abroad.
The center follows other steps that Pan Gongsheng, the best governor of the bank, spoke about in June. He wants to open the Chinese money markets more and the Yuan is used in more places worldwide. His other ideas include looking at Yuan Futures Trading and getting trading companies to sell bonds in Shanghai that work offshore.
China wants the Yuan to compete with the US dollar
This fits in with President Xi Jinping’s larger plan to make China a strong financial power with stable money. The push became more important because trade fights got worse under the second time in function of US President Donald Trump.
The Yuan nowadays already beats the dollars in China deals with other countries. China’s own payment system called CIPS has also become bigger. Earlier this year it added more foreign banks such as United Overseas Bank.
Mainland China wants Hong Kong to stop working on RWA
However, another story happens at the same time. The Chinese Securities Waakdog told some local investment companies to stop doing Real-World Activa-Tokenization work in Hong Kong. Two people who know about this said the Beijing shows that Beijing is worried about too much excitement for digital assets that take place outside of China.
Real-WORLD Asset-Tokenization means regular investments such as shares, bonds, investment funds and even buildings, and then converting them into digital tokens that can be traded on blockchain networks. Many Chinese companies, including investment companies, have started in Hong Kong in Hong Kong in recent months.
At least two major investment companies received informal advice from the China Securities Regulatory Commission in recent weeks. The message was to stop doing this real activa company in other countries, according to sources who know what happened.
One source said that the new rules are intended to better manage risks in this new type of company. They also want to ensure that companies can support their claims with real, legal activities.
The stock prices for large Chinese investment firms in Hong Kong took hits on Tuesday. Guotai Junan International and GF Securities lost between 2% and 7.25%. The entire market fell from 0.9%by the morning.
This is while Hong Kong spent the last year to become the most important digital asset center in Asia. Many companies, including Chinese investment companies, were ready to offer virtual assets, investment advice and digital asset management.
China used to be the world’s largest place for Bitcoin trade and mining. But the changed course and forbade cryptocurrency trade and mining in 2021 because officials were concerned about problems with the financial system.
Last month, Chinese regulators told large local investment firms to stop publishing research that supported Stablecoins. This was intended to cool the growing interest in digital money in people in China, Reuters reported that they were using sources.
Beijing’s newest movements took place, although Hong Kong said in June that the financial services and the Treasury Bureau and Hong Kong Monetary Authority are checking legal issues about Real-World Activa-Tokenization. They look at what other countries have done.
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