In Wang Yongli's view, if crypto assets are legalized, corresponding monetary payment and settlement support will be required.
Accelerating Cross-Border RMB Payment Systems
At the "2025 China Economic Outlook" sub-forum during the Tsinghua PBCSF Global Finance Forum held in Shenzhen on May 17–18, 2025, Wang Yongli—former Vice President of Bank of China and current Co-Chairman of Digital China Information Service Group—emphasized that China must strengthen domestic and international dual circulation development amid increasingly complex global conditions.
Key achievements in RMB cross-border payment systems include:
- Advancement of interbank payment clearing systems
- Establishment of China UnionPay
- Development of the RMB Cross-Border Interbank Payment System (CIPS)
- Enhanced collaboration with SWIFT
The Rise of Stablecoins in Crypto-Asset Ecosystems
New trends in cross-border payments have emerged with crypto assets driving demand for fiat-backed stablecoins. Traditional payment systems cannot support 24/7 global digital transactions, and without convertibility to fiat currencies, crypto assets face severe limitations.
Wang noted that the U.S. has pioneered dollar-pegged stablecoins like USDT and USDC, which now dominate the market. These innovations necessitate:
- Technological efficiency improvements
- Cost reduction in monetary operations
- Stringent risk control frameworks
👉 Explore how stablecoins are reshaping global finance
Expanding Digital Asset Frontiers
Beyond traditional cryptocurrencies like Bitcoin, the emergence of NFTs and tokenized real-world assets (RWA) underscores the need for monetary systems to evolve. Wang advocates learning from stablecoin models to modernize currency operations, asking: "If stablecoins can achieve this as proxy tokens, why can’t sovereign currencies?"
Challenges in Stablecoin Proliferation
While diverse USD stablecoins exist, Wang warns against fragmentation, calling for unified operational standards to ensure stability.
Fintech Advancements and Digital Infrastructure
China leads in mobile payments and central bank digital currencies (CBDCs), but faces obstacles:
- Redundant systems inflating connectivity costs
- Data silos and security vulnerabilities
- Unclear ownership of digital assets
Wang proposes leveraging digital RMB (e-CNY) as a template for centralized digital infrastructure. Its unified app architecture could:
- Aggregate transaction data comprehensively
- Enable precise tracing by entity
- Replace physical IDs with configurable digital identities
"Substantive breakthroughs in these areas will anchor the transformation toward digital currencies, assets, finance, and society," he concluded.
FAQ
Q: Why are stablecoins significant for cross-border payments?
A: They bridge crypto and fiat systems, enabling seamless 24/7 transactions while maintaining peg stability.
Q: How does China’s digital RMB differ from stablecoins?
A: e-CNY is a sovereign CBDC with centralized governance, whereas stablecoins are private-sector tokens pegged to fiat reserves.
Q: What risks do multiple stablecoins pose?
A: Fragmentation may undermine liquidity and increase systemic risk without interoperability standards.