CIPS Expands to 189 Countries as China Accelerates Push for Yuan Globalization

China’s Cross-Border Interbank Payment System (CIPS) has quietly become one of the fastest-growing global payment networks, now spanning 189 countries and territories as Beijing intensifies efforts to internationalise the renminbi (RMB) and reduce reliance on the U.S. dollar in global trade. The expansion, announced by the People’s Bank of China (PBoC) in mid-2025, marks a milestone for the system once dismissed as a regional alternative. In the first half of this year alone, CIPS processed $12.7 trillion worth of cross-border payments, up sharply from the previous year, signalling growing adoption among banks and corporations engaged in China-linked trade. What CIPS Really Is CIPS functions as China’s equivalent of the global SWIFT network, yet its ambitions are different. While SWIFT acts as a messaging system for payments, CIPS handles both messaging and actual RMB clearing and settlement. Launched in 2015 and built around the ISO 20022 global standard, the platform enables direct RMB transactions without passing through dollar intermediaries. It operates nearly 24 hours a day, five days a week, covering all major time zones. As of June 2025, CIPS has 176 direct participants, including major Chinese and international banks and over 1,500 indirect participants, giving it reach to nearly 4,900 financial institutions worldwide. The Global Shift Behind the Numbers Beijing’s motivation is clear: create an alternative payment infrastructure that shields trade flows from geopolitical shocks and dollar-based sanctions. The system’s expansion reflects China’s growing global trade dominance, especially in Africa, Asia, and parts of Latin America, where many economies are increasingly invoicing in RMB for imports, construction, and energy projects. In parallel, the yuan’s global payment share rose to 3.17% in September 2025, making it the world’s fifth most-used currency, according to SWIFT data. While the U.S. dollar still commands over 40% of global transactions, the RMB’s steady climb signals a long-term structural shift. “CIPS is the backbone of China’s ambition to make the yuan a credible trade currency,” said an economist at Standard Bank’s China-Africa Research Desk. “The real story isn’t about replacing SWIFT, it’s about building resilience and optionality.” Impact on Africa and Emerging Economies Nowhere is this shift more visible than in Africa. Chinese trade with the continent surpassed $280 billion in 2024, and more local banks are connecting to CIPS either directly or through intermediaries. In Tanzania, where imports from China range from heavy machinery to consumer electronics, CIPS is emerging as a potential tool for reducing transaction delays and FX conversion costs. Local financial analysts say Tanzanian banks could leverage CIPS to settle directly in yuan, bypassing dollar clearing centres in New York or London, cutting settlement times from days to hours. “The system is still maturing, but for Tanzanian importers dealing frequently with Chinese suppliers, CIPS will be a game changer,” said a Dar es Salaam-based trade finance specialist. “It’s faster, cheaper, and less politically exposed.” The Roadblocks Ahead Despite the growth, challenges remain. China’s tight capital controls, limited currency convertibility, and relatively shallow offshore yuan liquidity constrain CIPS from becoming a true rival to SWIFT. Most of the system’s transactions are still linked to Chinese banks or state-linked firms, and the RMB’s share in global reserves remains below 3%. Western sanctions and compliance concerns also make some banks cautious about joining the system directly. “CIPS has the technology and policy support, but not yet the trust or openness that makes the dollar dominant,” said a financial analyst from Eurasia Group. “Until Beijing loosens control of the RMB, the system will grow, but within limits.” Why It Matters For China, CIPS represents more than just a payment network; it’s a geopolitical hedge. By enabling trade settlements in RMB, Beijing reduces exposure to the dollar system, mitigates sanctions risk, and enhances its economic leverage across the Global South. For emerging markets like Tanzania, Kenya, or South Africa, participation offers a strategic advantage: cheaper transactions in China-linked trade and access to growing RMB liquidity pools. And for global finance, it signals a gradual but undeniable shift toward a more multipolar currency order, where the dollar no longer dominates every transaction lane. The Outlook CIPS is expected to keep expanding its network and participant base through 2026, supported by the PBoC’s policy push for yuan internationalisation and the growing influence of Chinese trade finance in Belt and Road economies. Still, economists warn that adoption will remain pragmatic, not ideological. For now, the dollar remains king, but CIPS is quietly building the roads that could one day lead to a different financial map. About Uchumi360 Uchumi360 covers Africa’s emerging markets, global economic shifts, and the intersection of policy, business, and technology shaping tomorrow’s economy.