Guangdong has proposed expanding cross-border digital yuan payment pilots as part of a draft free trade zone plan now open for public consultation. According to a draft of the China (Guangdong) Pilot Free Trade Zone 15th Five-Year Development Plan (2026–2030) released by the Guangdong Department of Commerce on August 6 for public consultation, the province intends to enlarge financial opening measures while supporting more digital yuan use cases and expanding trials for cross-border e-CNY payments. The consultation document will remain open for public feedback until September 5, 2026, after which authorities will review feedback before completing the final version.
The draft calls for expanding application scenarios for the digital yuan while supporting larger pilot programs for cross-border digital yuan payments and the Cross-boundary Wealth Management Connect scheme. The document also proposes allowing financial institutions inside the free trade zone to develop products including cross-border supply chain finance and intellectual property pledge financing. At the same time, it seeks to deepen pilot programs covering cross-border credit asset transfers and multi-currency integrated accounts to increase interoperability between cross-border financial products. Beyond digital currency initiatives, Guangdong plans to encourage international financial institutions to establish regional headquarters inside the free trade zone.
The proposal follows China's first digital yuan cross-border payment with Singapore through the upgraded CBETS platform. According to reports from Mobile Payment Network, the Shanghai branch of the Industrial and Commercial Bank of China and ICBC Singapore completed China's first digital yuan cross-border payment with Singapore through the newly upgraded Digital Currency Express comprehensive settlement platform. The transaction settled nearly 10 million yuan in import shipping fees entirely in digital yuan, with the Singapore recipient receiving the funds on the same day. The payment was completed for a subsidiary of a centrally owned enterprise that regularly imports iron ore and pays overseas shipping charges, expanding ICBC's digital yuan infrastructure by linking payment and collection services between China, Singapore and Laos.
The draft outlines plans to support offshore finance, green finance, cross-border wealth management, venture capital, asset management, futures trading and other financial services within the free trade zone. Beyond digital currency initiatives, Guangdong plans to encourage international financial institutions to establish regional headquarters inside the free trade zone while accelerating projects such as the Greater Bay Area International Commercial Bank and the Guangdong-Hong Kong-Macao Greater Bay Area Insurance Service Center. Commodity trading also features prominently, with authorities wanting to expand trading volumes while strengthening coordinated spot and futures trading for commodities including iron ore, crude oil and rubber to improve pricing capabilities.
The proposal comes after Chinese authorities introduced several policy measures to expand the digital yuan beyond domestic retail payments. Beginning January 1, banks were permitted to pay interest on verified digital yuan wallets after the People's Bank of China approved the transition of the e-CNY from electronic cash into an interest-bearing digital deposit currency. The central bank announced plans to enlarge cross-border digital yuan pilot programs involving Singapore, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia. The International Operation Center has continued expanding participation in digital yuan settlement infrastructure as financial institutions and cross-border trade platforms join new payment networks.
