China on May 9, 2025, introduced a national blockchain platform to allow for domestic and foreign use of the digital RMB (e-CNY). The move demonstrates China’s commitment to strengthening its digital economy as well as the national currency’s global position.
Role of the national blockchain platform
The main objective of the new platform is the building of an integrated ecosystem for the use of e-CNY in all sectors, ranging from the financial sector to government services. The platform provides:
Easy integration for commercial banks and fintech institutions.
Cross-border transactions with minimal cost.
Improved security and transparency of financial information.
Technical Features
The platform is based on a closed-blockchain architecture developed by the Central Bank of China (PBoC) in collaboration with leading tech giants such as Alibaba, Tencent and Huawei.
Maximum 100,000 transactions per second transaction speed can handle large financial flows in real time.
Modular architecture allows new financial services to be added without the need to change the entire system.
(Source: South China Morning Post)
Future of digital RMB on new platform
The establishment of the platform opens up new opportunities for domestic and foreign use of e-CNY.
Domestic payments
Digital RMB will be the main method of non-cash payments in major cities like Beijing, Shanghai and Shenzhen.
Government departments are set to pay government officials directly from the blockchain platform.
Shops and transport providers are already using e-CNY payments through mobile apps.
Cross-border transactions
The platform is linked to the CIPS cross-border payment system, and Chinese exporters are able to receive payment early in e-CNY.
Southeast Asian countries like Thailand and Malaysia will likely start using the digital yuan aggressively as trading partners.
(Source: Reuters)
Pundits’ opinions
Impact on economy
The launch of the platform will further consolidate the yuan’s position as a global reserve currency, says Bank of China analyst Li Jun:
“We see growing interest from the BRICS, who see e-CNY as a tool for dollar competition in cross-border settlements.”
(Source: Bloomberg)
Technology Breakthrough
Ant Group CTO Ming Hui said:
“Blockchain infrastructure allows for faster and more secure transactions processing, making digital yuan eligible for international settlement.”
(Source: CoinDesk)
⚠️ Risks and Challenges
Despite the very obvious benefits, the launch of the platform is riddled with challenges:
Privacy concerns
Opponents of the launch of the platform fear that the Chinese government will have total control over individuals’ financial transactions.
International organizations have expressed concern that the platform can be misused to track capital flows.
(Source: Financial Times)
Economic Risks
The mass use of e-CNY would result in the decline of the use of cash and substitute conventional banking services.
Experts fear that the digital yuan will serve as a means to control financial flows.
(Source: CNBC)
Global Reaction
The US and EU have been optimistic but required privacy and transparency requirements. Other countries are also expected to overhaul their financial systems to deal with the Chinese platform.
Russian Reaction
Russia is considering integrating the digital ruble with the Chinese platform to facilitate transactions between the two countries. This is a significant step in an attempt to create an alternative to SWIFT.
(Source: TASS)
Conclusion
The launch of a national blockchain platform for the digital RMB is a huge step towards digitalizing China’s economy. Through technological innovation and government support, the platform can not only solidify e-CNY’s lead in the domestic market, but also become a key part of cross-border trade.
Nevertheless, issues of control and privacy are still an issue to debate. Ultimately, the project will be a success in the long term if it achieves to harmonize innovation with protection of user information.
Sources:
China Introduces National Blockchain Platform to Support the Digital RMB
