People’s Bank of China Embraces Blockchain for Payments – Coincu

Pan Gongsheng emphasized blockchain’s role in modernizing cross-border payments at the Lujiazui Forum in Shanghai on June 18, 2025.

The push for blockchain in this sector is seen as part of a broader trend in adopting technology for financial improvement.

Blockchain’s Crucial Role in China’s Payment Strategy

Pan Gongsheng, Governor of the People’s Bank of China, highlighted the growing importance of blockchain and distributed ledgers in cross-border payments at the 2025 Lujiazui Forum. He emphasized how these technologies facilitate the payment and settlement processes, while also tackling regulatory challenges. As stated, “blockchain and DLT enablement for cross-border payments [present] systemic opportunities and regulatory challenges posed by DeFi and smart contracts”: Global Times.

The central bank‘s digital currency stablecoin is highlighted, noting its role in speeding up cross-border payments. The upgrade involves smart contracts and decentralized finance, suggesting a focus on advancing payment systems without relying on traditional frameworks. For more on financial innovation initiatives in Shanghai, refer to the Shanghai Municipal Government Update on New Initiatives.

Despite the significant announcements, there were no direct responses from other global financial entities. However, the emphasis on blockchain continues to draw attention to China’s leading role in digital currency innovation, according to the official agenda from the Lujiazui Forum.

Historical Impact of Digital Finance in China

Did you know? Historically, China has been setting benchmarks in the digital finance arena; forums like Lujiazui frequently mark pivotal advancements in blockchain and digital currency, solidifying China’s role as a fintech leader in Asia.

According to CoinMarketCap, Ethereum is currently valued at $2,522.55 with a market capitalization of $304.52 billion. Recent trends show a negative 24-hour change of -2.17%, and a 7-day drop of -9.57%, with an overall upward trend of 58.46% over 60 days, reflecting market volatility.

Coincu’s research team suggests the move towards blockchain in payments could bolster institutional confidence in cryptocurrency infrastructure. This marks significant potential growth in stablecoin development and reinforces strategic financial modernization in China. The Pudong’s Financial Free Trade Zone Development Plans also envision accelerating such innovations.