China Advances Digital Yuan Rollout with Cross-Border Expansion and Legal Tender Status
China is set to implement a comprehensive management framework for its digital yuan (e-CNY) effective January 1, marking a transition from pilot phases to full-scale domestic and international adoption. The initiative establishes a new system for measuring and managing the central bank digital currency (CBDC), with recent successes including its first cross-border transaction in Laos.
The digital yuan distinguishes itself from private payment apps like Alipay and WeChat Pay by operating as sovereign legal tender—businesses are mandated to accept it. Transactions are fee-free for both merchants and users, reinforcing its utility as a public good. Meanwhile, China has upgraded the mBridge platform, a multi-CBDC infrastructure facilitating instant cross-border payments among participating nations.
