China Expands Digital Yuan Pilot to Free Trade Zones Nationwide

China Expands Digital Yuan Pilot to Free Trade Zones Nationwide

China Broadens Digital Yuan Testing Ground Beyond Shanghai

China is accelerating its digital currency ambitions by expanding its digital yuan initiative beyond Shanghai’s Free Trade Zone to a broader network of national free trade zones, the country’s central bank confirmed on Friday, July 4.

【央行:加大“上海经验”复制推广力度,支持数字人民币创新应用等推广到相关自贸试验区】金十数据7月4日讯,中国人民银行研究局负责人纪敏7月4日在国务院政策例行吹风会上表示,下一步,人民银行将会同有关部门、其他的金融管理部门,在有效防范风险的基础上,继续支持自贸试验区深化对接国际高标准经贸规则和推动更高水平制度型开放。一方面,在上海自贸试验区进一步深化金融开放创新。前不久,陆家嘴论坛上宣布了八项支持政策,包括发展自贸离岸债,优化升级自由贸易账户功能,以及开展离岸贸易金融服务综合改革试点等。另一方面,要加大“上海经验”的复制推广力度,支持数字人民币创新应用等措施推广到相关自贸试验区,将优化电子支付服务等措施推广到全国,为我国金融领域开放创新发展探索实践路径,积累更多可复制可推广的经验。 - 金十数据
【央行:加大“上海经验”复制推广力度,支持数字人民币创新应用等推广到相关自贸试验区】金十数据7月4日讯,中国人民银行研究局负责人纪敏7月4日在国务院政策例行吹风会上表示,下一步,人民银行将会同有关部门、其他的金融管理部门,在有效防范风险的基础上,继续支持自贸试验区深化对接国际高标准经贸规则和推动更高水平制度型开放。一方面,在上海自贸试验区进一步深化金融开放创新。前不久,陆家嘴论坛上宣布了八项支持政策,包括发展自贸离岸债,优化升级自由贸易账户功能,以及开展离岸贸易金融服务综合改革试点等。另一方面,要加大“上海经验”的复制推广力度,支持数字人民币创新应用等措施推广到相关自贸试验区,将优化电子支付服务等措施推广到全国,为我国金融领域开放创新发展探索实践路径,积累更多可复制可推广的经验。

Ji Min, head of the People’s Bank of China (PBOC) Research Bureau, said the move marks a push to replicate the “Shanghai model” of digital finance innovation in other regions. The initiative is part of a wider strategy to open up the country's financial sector and modernize its digital infrastructure.

“China will deepen financial openness and innovation,” Ji stated, adding that free trade zones will continue to play a central role in advancing electronic payment systems and digital yuan adoption.

Digital Yuan Gains Ground in Strategic Economic Zones

Free trade zones (FTZs) in China are designated regions with relaxed trade and investment rules. With 21 zones scattered across key coastal provinces like Shanghai, Fujian, and Hunan, they’ve become ideal testing grounds for new financial technologies.

Expert Guide: China’s 21 Free Trade Zones in 2025
This article will discuss free trade zones in China, the benefits of free trade zones and free trade zones introduced since 2016.

These zones already offer incentives for foreign businesses and streamlined regulatory processes. Now, they’ll be central to China’s next stage of digital currency experimentation. While there’s no confirmed date for a full nationwide rollout, the expansion into FTZs suggests a methodical, region-by-region approach to scaling the digital yuan.

Momentum Builds Behind China’s CBDC Pilot

Since the digital yuan pilot began in 2020, China has been testing the central bank digital currency (CBDC) in cities such as Shenzhen, Beijing, and Suzhou. By 2024, cumulative transactions using the digital yuan topped ¥7.3 trillion (roughly $1.02 trillion), with over 180 million individual wallets registered.

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A CBDC is virtual money created by a central bank. As cryptocurrencies and stablecoins become popular, central banks provide alternatives

That level of traction places China far ahead of most other nations exploring state-backed digital currencies. Officials say expanding the pilot to more FTZs will help refine the technology and policy frameworks before any nationwide adoption.

A Measured Step Toward a Digital Financial Future

While the PBOC hasn't yet committed to a full national launch, the current expansion signals confidence in the pilot’s results so far. It also aligns with China’s broader digital economy goals, particularly in areas such as cross-border trade, fintech innovation, and international competitiveness.

At the recent Lujiazui Forum — a major financial summit held in Shanghai — regulators reiterated the importance of using FTZs to incubate and scale new models of financial openness, including digital currencies.