China’s digital yuan has processed $2.37 trillion in cumulative transactions, an 800% jump since 2023, as the People’s Bank of China pushes the CBDC into everyday banking. The milestone comes as the US Senate has yet to vote on any crypto rules, leaving a policy gap that industry watchers say China is exploiting.
Digital yuan gets bank account treatment
China changed rules this year to let the digital yuan sit in bank accounts like normal savings, earning interest and covered by deposit insurance. That’s a big shift from the earlier design, where e-CNY was more like cash in a digital wallet. The move is part of the currency’s inclusion in China’s latest five-year plan, signaling long-term commitment. The PBOC Governor warned that a dominant currency tends to be instrumentalized or weaponized — a clear nod to the dollar’s role.
mBridge dominates cross-border payments
The mBridge cross-border CBDC platform, run by five central banks including China’s, has settled $55.49 billion. China’s digital yuan accounts for 95% of that traffic. That dwarfs the activity of dollar stablecoins in cross-border use, though stablecoins overall have a $310 billion market cap — Tether at $184 billion, USDC at $73 billion. Chinese stablecoins barely register by comparison.
China’s crypto investment vs US policy gridlock
Coinbase Chief Policy Officer Faryar Shirzad said China is investing more in crypto rails than any other country. The numbers back him up: Chinese state funds pushed an estimated $184 billion into AI firms between 2000 and 2023, though official totals show only $12.4 billion in private AI investment in 2025. The US poured $285.9 billion into private AI last year. But on crypto infrastructure, China is moving fast while Washington stalls. The US Senate hasn’t voted on crypto rules; the digital yuan is already integrated into bank accounts.
Coinbase turns to Chinese AI
Coinbase uses two Chinese AI models, cutting its AI costs roughly in half. DeepSeek charges $0.87 per million output tokens, cheaper than Western rivals. That’s a practical example of how Chinese tech is finding its way into US crypto firms, even as policy debates drag on.
The next test for the digital yuan will be how quickly it gains traction outside China’s borders. mBridge is expanding, but the PBOC’s warning about weaponization suggests Beijing is thinking about the dollar’s dominance — and its own ambitions.
