China is intensifying the use of the digital yuan in cross-border payments, with a particular focus on connecting to Portuguese-speaking markets. The digital yuan, the world's first state-issued digital currency, began development by the Chinese central bank in 2014, with technical tests carried out in several cities since 2019. The project already supports online and offline payments, smart contracts and integration with international systems.

At a seminar recently held in Macao, organised by the Monetary Authority of Macao, the potential of this digital currency to improve efficiency and reduce costs in international transactions was highlighted, promoting greater financial co-operation with Portuguese-speaking countries.

According to central bank officials, a cross-border transfer system is already operational, allowing foreign financial institutions to access a single platform with payment services available 24 hours a day.

Macao plays a strategic role as a bridge between China and Portuguese-speaking markets, and is also developing the digital pataca and participating in the mBridge project, which connects several central banks. The interconnection of these infrastructures is expected to further facilitate financial flows between China and Portuguese-speaking countries.

(Source: Notícias ao Minuto, on 1 June)