China’s Deputy Central Bank Governor Clarifies Digital Yuan Strategy — CBDC to Coexist With Alipay and WeChat Pay

China is shaping the future of money — and it’s not looking to replace private payment platforms just yet.
According to WuBlockchain, Pan Gongsheng, Deputy Governor of the People’s Bank of China (PBoC), shared new details about the nation’s ongoing Digital Yuan (e-CNY) rollout and its integration into China’s financial system.

Speaking at a recent financial policy forum, Pan emphasized that the Digital Yuan (CBDC) is not a competitor to Alipay or WeChat Pay, but rather a complementary state-backed currency infrastructure designed to improve settlement efficiency, security, and financial inclusion.

Digital Yuan to Strengthen Monetary Sovereignty

The e-CNY, China’s central bank digital currency, is a cornerstone of the country’s long-term financial digitization strategy.
Pan explained that the CBDC aims to enhance monetary sovereignty, reduce reliance on private digital payment systems, and modernize interbank settlements.

“The digital yuan will serve as public infrastructure — a neutral settlement layer built under central bank oversight,” said Pan.

This ensures that while private platforms continue to dominate retail payments, the central bank maintains full visibility and control over the underlying currency layer.

Coexistence, Not Competition

Pan was clear that e-CNY adoption won’t displace Alipay or WeChat Pay, which remain dominant in China’s mobile payment landscape.
Instead, the goal is to create interoperability, where users can transfer seamlessly between CBDC wallets and private payment networks.

“The goal is not replacement but integration,” Pan emphasized. “We want an ecosystem that’s more efficient, secure, and inclusive.”

This strategy mirrors China’s broader approach — leveraging private innovation while maintaining state control over systemic infrastructure.

Cross-Border Ambitions and Technological Expansion

China’s central bank is also exploring cross-border CBDC applications, working with other Asian and Middle Eastern nations through the mBridge project to test multi-CBDC settlements.

The goal: enable instant, low-cost international transfers using interoperable digital currencies — a potential challenge to SWIFT’s global dominance.

“The digital yuan could become part of a new multi-currency ecosystem that reduces reliance on the U.S. dollar in international trade,” analysts note.

Privacy, Control, and the Future of the Digital Yuan

Pan addressed growing concerns about privacy, asserting that “controllable anonymity” remains central to the e-CNY’s design — allowing small transactions to stay private while enabling traceability for large or suspicious ones.

This balance, Pan argued, ensures both consumer confidence and national security compliance.

As of early 2026, the digital yuan pilot has expanded to over 30 cities, integrating with public services, retail platforms, and transport systems.

Frequently Asked Questions (FAQ)

1. What is the Digital Yuan (e-CNY)?
The Digital Yuan is China’s central bank digital currency (CBDC) issued by the People’s Bank of China. It serves as legal tender in digital form, designed to make payments faster, traceable, and fully integrated with national financial systems.

2. Will the e-CNY replace Alipay and WeChat Pay?
No — the PBoC has confirmed that the e-CNY will coexist with private payment apps, not replace them. It acts as a settlement backbone that ensures transparency and stability across platforms.

3. Why is China developing a CBDC?
China aims to modernize its monetary system, reduce dependency on private fintech infrastructure, enhance cross-border payment efficiency, and increase oversight over digital transactions.

4. Is the Digital Yuan safe for users’ privacy?
Yes — the PBoC employs a “controllable anonymity” model. Small payments remain private, but large transactions are traceable to prevent fraud and financial crimes.

Outlook: Digital Currency With Chinese Characteristics

The PBoC’s message is clear — the Digital Yuan isn’t just another payment app, it’s a monetary evolution.
As China refines its CBDC strategy, it’s positioning itself as a global leader in digital monetary policy, reshaping the very definition of money in the modern world.

From mobile wallets to state-controlled digital cash — the financial future is already here.