Insights
China seeks positions digital yuan for cross-border trade settlements
China’s Cross-border e-CNY Transfer Services (CBETS) signals a strategic shift for the digital yuan from retail payments to wholesale cross-border settlement. By combining this blockchain-based e-CNY infrastructure with mBridge and CIPS, Beijing is building a layered alternative for trade finance, remittances and financial messaging across Asia, the Middle East and beyond.
Asia’s shift beyond the dollar
From local currency trade and gold accumulation to CBDCs and cross-border payment corridors, de-dollarisation in Asia is unfolding steadily and strategically. The region is taking steps toward a gradual shift to a multipolar currency landscape to secure greater financial sovereignty, relying less on the US dollar.
SWIFT remains dorminant
SWIFT’s expulsion of seven Russian banks from the system two years ago has triggered various solutions to emerge, ranging from multi-country payment networks, digital instant payment systems, fintech solutions, CBDC cross-border projects, to cryptos. This aligns with the global demand for more diversified and less centralised channels for financial transactions.
Time for an Asian Monetary Fund?
The idea of creating an Asian Monetary Fund is resurrected as nations reconsider the downsides of over-reliance on the US dollar.