People’s Bank of China Governor Pan Gongsheng said emerging technologies such as blockchain are accelerating central bank stablecoin adoption while warning of growing regulatory challenges.
Speaking at the 2025 Lujiazui Forum in Shanghai, Pan said these technologies are driving innovation in cross-border payments and fueling the rapid development of central bank digital currencies and stablecoins.
However, he cautioned that this transformation brings major regulatory challenges. He also noted the lack of unified standards globally on the use of artificial intelligence in the financial sector.
Pan also said future competition among major sovereign currencies could create momentum for the International Monetary Fund’s Special Drawing Rights to evolve into a more stable global reserve currency. He said the global monetary system is likely heading toward a structure in which several sovereign currencies coexist, compete, and serve as mutual checks and balances.
While the SDR offers advantages over any single sovereign currency, its current influence remains limited by scale, liquidity, and a lack of political consensus among member states, he said.
He noted that the yuan has gained international traction since the 2008 global financial crisis. It is now the second most-used currency for trade finance, the third in global payments, and ranks third in the SDR currency basket.
Pan also pointed to China’s progress in developing cross-border financial infrastructure, including a multi-channel yuan clearing network and over 30 bilateral local currency swap agreements, positioning the country as a key player in the global financial safety net.
At the forum, Pan introduced a package of financial reforms aimed at modernizing China's markets and enhancing global integration. These include improved interbank market monitoring, international expansion of the digital yuan, and further development of offshore finance, credit systems, and monetary policy tools. The central bank is also working with regulators to explore yuan-based foreign exchange futures trading.
The forum also marked the signing of a cooperation agreement between Shanghai and Hong Kong to strengthen financial connectivity and cross-border innovation. Hong Kong Financial Secretary Paul Chan Mo-po said the plan will enhance both cities’ roles as international financial hubs.
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