China is revolutionizing payment transactions: Yuan is conquering the world!

China is revolutionizing payment transactions: Yuan is conquering the world!

China is strengthening its cross-border payment systems to promote the yuan's role in global finance. In particular, the Cross-Border Interbank Payment System (CIPS) of the People’s Bank of China (PBC) plays a central role. This system now connects over 1,700 institutions in 189 countries, significantly expanding China's international reach. According to a recent report Daily Hodl About 175 trillion yuan (equivalent to about $24.55 trillion) were processed through CIPS in 2022, an increase of 43% year-on-year.

CIPS transaction volume has been growing at an impressive 40.3% annually since 2021. This development is supported by the integration of the digital yuan into the CIPS platform. In addition, the PBC has expanded the number of foreign bank branches to facilitate access to Chinese markets. A key measure was the linking of China and Hong Kong's fast payment systems in June 2023, aimed at streamlining cross-border remittances.

Increasing interest in fast payments

In the first half of 2025, the number of inbound mobile payments increased significantly. Statistics show that 10 million foreign users have chosen this payment option, with transactions increasing by an impressive 162%. These trends indicate a growing interest in fast and efficient payment solutions, which are becoming increasingly important in the new global financial landscape.

In addition to advancing its economic interests within BRICS, China is also developing independent payment systems such as CIPS to reduce dependence on the US dollar. Loud Daily Hodl CIPS has already signed payments processing agreements with over 40 countries. These initiatives aim to weaken the influence of the US dollar and create an alternative to the existing international payment systems.

BRICS and new payment initiatives

A central component in this strategy is the development of individual payment initiatives within the BRICS countries. These include the BRICS Pay system and the BRICS Cross-Border Payment Initiative (BCBPI), which are intended to facilitate cross-border settlements in local currencies among member states. These initiatives operate independently of China's CIPS but have overlap in their goals, particularly when it comes to reducing dependence on the dollar.

The country's financial policies and the expansion of payment systems such as CIPS are shaping not only China's economic relationships with other nations, but also the global financial architecture as a whole. These developments could have far-reaching implications for international trade and monetary policy.