tl;dr
In June 2025, China expanded its Cross-Border Interbank Payment System (CIPS), connecting 1,700 institutions across 189 countries and processing $24.55 trillion in transactions in 2024—a 43% increase from 2023. The system, integrated with China’s digital yuan, aims to challenge the US dollar’s domin...
**China Expands Cross-Border Payment Systems to Boost Yuan’s Global Influence**
China is accelerating its efforts to strengthen its cross-border payment infrastructure, aiming to elevate the yuan’s role in global finance and reduce reliance on the US dollar. At the heart of this initiative is the People’s Bank of China’s (PBC) Cross-Border Interbank Payment System (CIPS), which has seen exponential growth in recent years.
According to the state-owned *Global Times*, CIPS now connects over 1,700 financial institutions across 189 countries, processing a staggering 175 trillion yuan ($24.55 trillion) in transactions last year. This marks a 43% surge from the previous year, with CIPS transaction volumes growing by 40.3% annually since 2021. The system’s expansion underscores China’s strategic push to position the yuan as a key currency in international trade and finance.
A critical component of this strategy is the integration of CIPS with the digital yuan (e-CNY), China’s central bank digital currency (CBDC). This synergy aims to streamline cross-border transactions, enhance security, and improve efficiency. Additionally, the PBC has expanded its overseas banking networks, further solidifying China’s footprint in global financial markets. In June 2025, China and Hong Kong also linked their fast payment systems to simplify cross-border remittances, highlighting the importance of regional cooperation.
Inbound mobile payments in China have also surged, with the *Global Times* reporting 10 million foreign users in the first half of 2025 and a 162% increase in transactions. This growth reflects the rising adoption of digital payment solutions among international users, further embedding the yuan into global financial ecosystems.
China’s broader vision is tied to its leadership in the BRICS alliance (Brazil, Russia, India, China, and South Africa). The group is developing independent payment infrastructures to counter US dollar dominance. While CIPS operates separately, BRICS members are advancing their own initiatives, such as the **BRICS Pay** system and the **BRICS Cross-Border Payment Initiative (BCBPI)**, which aim to facilitate settlements in local currencies among member states. Over 40 nations have signed settlement agreements with CIPS, reflecting a collective effort to reduce reliance on the US dollar and circumvent sanctions.
Despite operating independently, these initiatives share a common goal: fostering financial sovereignty. By diversifying payment systems and promoting regional currencies, China and BRICS aim to reshape global trade dynamics and challenge the US dollar’s hegemony.
As CIPS continues to grow and BRICS strengthens its financial alliances, the yuan’s global influence is poised to expand. These efforts not only bolster China’s economic power but also signal a shifting landscape in international finance, where multipolarity and digital innovation are redefining how the world transacts.