China has launched the Renminbi Digital system for cross-border settlements without the participation of the dollar
China has officially commissioned a new Renminbi Digital cross-border financial settlement system based on the use of the digital yuan. This decision was a key step in the development of alternative international payment mechanisms that allow transactions to be conducted outside the dollar infrastructure and minimize the impact of Western sanctions restrictions.
The system is based on China's state—owned blockchain and uses a digital yuan token, the issue of which is fully controlled by the People's Bank of China. The regulator also oversees the movement of digital funds, and user access is provided by commercial banks and licensed operators.
Renminbi Digital is already available in ASEAN countries, the Middle East, Russia and several CIS countries. By the end of 2025, transactions worth the equivalent of $90 billion passed through the new system. This confirms the growing interest of China's partners in settlements that do not depend on dollar infrastructure and SWIFT.
The Chinese side emphasizes that the system was created as an instrument of financial sovereignty and protection of foreign economic activity from external restrictions. The infrastructure allows trading settlements to be carried out directly between market participants, without going through Western banks. This is especially important for the BRICS countries, Eurasia, and countries that are strengthening economic cooperation with Beijing.
The digital yuan is being integrated into the growing multipolar architecture of international payments, where the dollar's dominance is gradually declining. Renminbi Digital is considered as one of the elements of the formation of new financial corridors that allow countries to conduct foreign trade in national currencies and reduce vulnerability to sanctions mechanisms.
Experts note that the introduction of the system strengthens China's position as a technological leader in the field of CBDCs (digital currencies of central banks). And the active involvement of partner countries demonstrates the demand for alternative payment methods that ensure stable payments and reduce transaction risks.
