China has been working to build an international payment network for mobile payments using the digital RMB, according to an op-ed published in the Chinese newspaper People’s Daily.
The Op-ed remarked that this network might just be the breakthrough point in the cross-border payments system. It also said that China wants to employ the digital currency to enhance its monitoring and alerting capabilities on cross-border movements of the RMB.
The Op-ed commented that the globalization of RMB is essential for Chinese economic development and, at the same time, is inevitable considering its economic development, quoting Song Ke, a deputy director at the Renmin University of China.
China’s state planning documents like the Five Year Plan have set the internationalization of the renminbi as one of its national goals in its five-year plan. However, the officials are still reluctant to talk about it.
The e-RMB has been in trial operations since March 2020 and has been used as payment means for at least $ 5 billion worth of transactions, including cross-border transactions.