According to Techub News, on June 17, six Chinese state-owned banks received approval to carry out offshore RMB business in the Shanghai Free Trade Zone (FTZ), aiming to bridge the onshore and offshore RMB markets. The Shanghai FTZ has long served as a testing ground for China's financial liberalization, and this move further opens up two-way flows of the Chinese currency.
Synergistic Push for Offshore RMB and Digital Yuan
On June 16, the People's Bank of China (PBOC) signed agreements with 26 financial institutions to promote the application of the digital yuan (e-CNY) in cross-border payments. Hong Kong's offshore RMB deposits have already surpassed 1 trillion yuan, providing ample liquidity for digital yuan cross-border usage. Starting January 1, 2026, digital yuan wallets will begin to accrue interest, enhancing their appeal as a payment instrument. Meanwhile, China continues to prohibit unauthorized RMB stablecoins, steering the adoption of its state-controlled central bank digital currency as a substitute for private stablecoins, thereby consolidating the digital yuan's role in the international payment system.