Shanghai accelerates the construction of an international financial center through the digitization of letters of credit

The recent policy announcements by the People’s Bank of China Shanghai Branch highlight financial innovation policies that are gaining attention as key strategies to develop Shanghai into a global financial hub. In particular, the implementation of blockchain-based letter of credit refinancing policies and the launch of the Digital Renminbi International Operations Center are providing new momentum for building the Shanghai International Financial Center. Zhou Feng, Deputy Director of the Currency and Credit Survey Department at the Shanghai Branch of the People’s Bank of China, stated that these policies are expected to elevate Shanghai’s financial competitiveness to a new level.

Blockchain Technology Revolutionizes Letter of Credit Refinance Processes

The promotion of blockchain-based letter of credit refinancing policies in the Hangwu area is transforming traditional trade finance. Through this policy, import and export companies can digitize letters of credit, significantly shortening refinancing procedures. The electronicization of letters of credit using blockchain technology offers various benefits, including tamper-proofing, increased transaction transparency, and faster settlement speeds. Notably, this greatly alleviates funding burdens for small and medium-sized import and export companies, directly strengthening Shanghai’s international trade competitiveness.

Digital Renminbi, International Operations Center Officially Operational

The Digital Renminbi International Operations Center established in Shanghai has now begun full operations. This center will serve as a hub for leading the international spread of the Digital Renminbi and is conducting in-depth pilot projects for multilateral central bank digital currency bridge initiatives in cooperation with multilateral central banks. This enables faster and more efficient cross-border remittances, further enhancing Shanghai’s status as an international financial hub. The development of an international payment system based on digital currency is expected to play a crucial role in the future reorganization of the global financial order.

Upgraded Financial Infrastructure Supports IMF Center Operations

Payment functions via smart cards and Digital Renminbi hard wallets are now fully supported across all subway lines in Shanghai. This modernization of financial infrastructure actively supports the smooth preparation and operation of the IMF Shanghai Center. As citizens and visitors can naturally utilize Digital Renminbi in daily life, Shanghai is emerging as an even more attractive city for global financial industry professionals.

The Shanghai headquarters is building a comprehensive financial ecosystem through policies on letter of credit refinancing, Digital Renminbi systems, and international payment infrastructure, which is regarded as a core foundation for Shanghai to truly establish itself as an international financial center in the future.