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As international monetary tensions intensify, China is accelerating its offensive against the dominance of the dollar. Beijing officially launches a strategic plan to impose its own international payment system. This initiative marks a major turning point in redefining global financial flows, reinforcing China’s ambition for a multipolar economic order. By directly targeting the traditional networks dominated by the West, this maneuver now captures the attention of markets, governments, and major financial institutions.
In Brief
- China formalizes an ambitious plan to promote its own international payment system.
- Shanghai becomes the nerve center for developing the CIPS network, a direct alternative to SWIFT.
- Beijing aims to strengthen the use of the yuan in cross-border trade and support its companies abroad.
- The project intends to reduce the BRICS’ dependence on the US dollar and consolidate their financial autonomy.
Beijing Accelerates the Promotion of Its International Payment System
The Shanghai municipal government, with the support of the People’s Bank of China (PBoC), officially launched an ambitious plan to increase the use of the yuan in cross-border transactions.
This plan “aims to develop an independent international payment system” based on the Cross-Border Interbank Payment System (CIPS), a network that already includes over 1,300 financial institutions across 110 countries.
Chinese authorities clarify their objective:
Increase the internationalization of the yuan and support the expansion of Chinese companies abroad.
CIPS is presented as a credible alternative to SWIFT, which has so far dominated the international payments sector.
The major pillars of the plan include:
- Strengthening CIPS to promote direct cross-border settlements in yuan;
- Optimizing multinational financial services, particularly in Shanghai, to facilitate commercial exchanges;
- Supporting Chinese companies internationally by offering financing and payment solutions alternative to the US dollar;
- Reducing dependence on the SWIFT network and thereby decreasing exposure to external financial pressures.
The strategic choice of Shanghai to lead this offensive is no coincidence. The city plays a pivotal role in the Chinese economy and serves as a laboratory for international financial reforms. This deployment is part of a broader dynamic linked to the Belt and Road Initiative (BRI), which aims to weave a yuan-dominated exchange network.
Beyond simply strengthening CIPS, China now expresses its intention to reshape the global financial architecture by offering the BRICS members a true alternative to the dollar.
The project supported by the PBoC indeed plans to “promote cross-border settlements in yuan” among member countries, marking a major strategic shift. The aim is to facilitate exchanges within the economic bloc but also to reduce exposure to the American banking system, seen as a geopolitical leverage.
The development of an autonomous payment ecosystem could profoundly transform the dynamics of international trade. By supporting bilateral financial flows with strategic partners through CIPS, China thus hopes to cement its economic influence while encouraging the adoption of the yuan in global exchanges.
Such a strategy fits into a trend observed in several recent BRICS initiatives, which aim to promote the use of local currencies and establish independent financial institutions.
This evolution raises multiple questions about the future of the international monetary system. If the transition toward a multipolar world in the field of payments accelerates, it could weaken the dollar’s preeminence and trigger profound restructurings in financial markets. Ultimately, the rise of an autonomous BRICS payment system could offer emerging countries greater economic maneuvering capacity, which would also lead to tensions with defenders of the current monetary order.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
