China Pushes Digital Yuan Into ASEAN Countries to Chip Away at Dollar Rule
© Sputnik / Nina Zotina
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China is expanding its digital yuan, or e-CNY, into ASEAN trade routes.
Recent People’s Bank of China (PBOC) pledges include cross-border pilots with Singapore, Thailand, Hong Kong, UAE, and Saudi Arabia, all tied to the New International Land-Sea Trade Corridor.
This builds on 2020 pilots, currently accelerating amid US trade tensions.
Key expansion facts
Renminbi (RMB, or yuan) settlements with ASEAN countries surged, hitting 28% of bilateral trade worth $597 billion in early 2025 (Standard Chartered Bank analysis/October)
Singapore is a key offshore RMB hub and fintech center for Chinese firms (including blockchain companies like Wanxiang)
Singapore's RMB deposits rose to around 224–276 billion RMB (~$31–38 billion USD/2023–2024)
PBOC launched a Shanghai-based digital yuan center in September 2025 to integrate e-CNY with global/cross-border systems, facilitate payments, blockchain services, and digital assets
Regional comprehensive economic partnerships (RCEP) have boosted regional supply chain integration and trade, contributing to increased RMB settlement in ASEAN countries
Strategic impact
By 2030, RMB is expected to be the world’s #3 currency, with 5–10% of global FX reserves (up from ~3%) (Morgan Stanley)
Share of global payments and trade finance could double to 8–10% on SWIFT, making RMB billing standard in Asia and China-linked trade
The digital yuan boosts momentum: e-CNY and mBridge could cut costs and speed up cross-border payments
China’s yuan is locking in a bigger, permanent role in global trade – a trend that feeds into the inexorable push to ditch the dominance of the increasingly weaponized US dollar.
3 December, 16:06 GMT
