How China opened the door to creating a direct rival to US payment systems

South China Morning PostCenter-RightEN 1 min read 100% complete by Xinyi WuMarch 19, 2026 at 03:00 AM

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A recent report indicates that China is taking steps to develop its Cross-border Interbank Payment System (CIPS) into a viable alternative to Western payment networks. Updated regulations, which took effect in February, mark the first major revision in eight years and broaden CIPS's mandate beyond yuan-denominated transactions. The changes authorize CIPS to handle offshore yuan and potentially other foreign currencies, including Hong Kong dollars. Furthermore, the updated rules relax restrictions on financial institution participation, allowing operating institutions to manage their own participant guidelines. These revisions signal China's intent to build CIPS into a global platform capable of multicurrency settlements and integration with other foreign payment channels.

Key Entities & Roles

Key Player Opposition Context

PBC School of Finance 40% Hong Kong 50% Tsinghua University 50% Ju Jiandong 60% People's Bank of China 60% United States 70% Beijing 70% China ×290% Cross-border Interbank Payment System (CIPS) ×4100%

Keywords

payment systems 100% cross-border payments 90% cips 90% china 80% yuan 70% global platform 60% financial institutions 50% multicurrency settlements 50% regulations 40%

Sentiment Analysis

Neutral

Score: 0.10

Source Transparency

Source

South China Morning Post

Political Lean

Center-Right (0.50)

Far LeftCenterFar Right

Classification Confidence

90%

Geographic Perspective

China

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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payment systems cross-border payments cips china yuan global platform financial institutions multicurrency settlements regulations

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