China is rapidly extending the reach of its digital yuan across Southeast Asia, positioning the e-CNY as a growing tool for cross-border trade and payments along key regional trade routes.
The People’s Bank of China has committed to new cross-border pilot programmes with Singapore, Thailand, Hong Kong, the United Arab Emirates and Saudi Arabia, linking them to the New International Land-Sea Trade Corridor. These initiatives build on earlier trials launched in 2020 and are now gaining pace amid rising trade tensions with the United States.
Use of the yuan in trade with ASEAN nations has climbed sharply, accounting for about 28 percent of bilateral trade worth nearly US$600 billion in early 2025, according to banking analysis.
Singapore has emerged as a central offshore yuan hub, with RMB deposits swelling to more than 200 billion yuan in recent years as fintech and blockchain activity expands.
China has also established a digital yuan centre in Shanghai to connect the e-CNY with global payment systems and digital asset platforms. Analysts say regional trade agreements and faster, cheaper digital settlement systems are steadily cementing the yuan’s role in Asian trade, reducing reliance on the US dollar.
Image credit: Eric Prouzet
