China’s crypto infrastructure has already handled a staggering $2.37 trillion in transactions, a figure that dwarfs US efforts as Washington’s lawmakers stall on crypto regulation. Faryar Shirzad, Coinbase’s Chief Policy Officer, shared these insights during a Fox Business interview, emphasizing that the future financial system is actively under construction right now.

“Crypto is not merely an investment,” Shirzad explained. “It’s a technology enabling value transfers money or financial instruments with the same ease as sending a text or an email.” When asked about China’s role in emerging technologies like AI, Shirzad pointed to China as the top investor.

China’s Massive Crypto Payment Networks

China operates a digital currency called the e-CNY, supported by its central bank. This system has processed 3.48 billion payments, totaling approximately $2.37 trillion. Remarkably, transaction volume for the e-CNY surged more than 800% just this year. The country recently altered its regulatory framework to allow digital yuan deposits in savings accounts, offering interest and deposit insurance an approach no other leading economy has matched.

In addition to domestic use, China participates in an international payment system known as mBridge, involving five central banks. Since its launch, mBridge has settled roughly $55.49 billion, a notable leap from just $22 million in 2022. The digital yuan makes up a dominant 95% of that traffic.

Contrast this with the US private sector’s stablecoin market, where tokens pegged to the dollar amount to about $310 billion led by Tether’s $184 billion and USDC’s $73 billion. Chinese stablecoins, however, barely make a dent outside of state-backed platforms. So while China leads on government-run crypto rails, the dollar remains supreme in private crypto networks.

This pattern mirrors AI investments as well. Stanford’s 2025 report highlighted $285.9 billion in private US AI investments, far outpacing China’s reported $12.4 billion. Yet, Chinese government funds have funneled an estimated $184 billion into AI firms since 2000, a shadow that official numbers often miss.

Coinbase itself illustrates this dynamic. CEO Brian Armstrong disclosed that the company uses two Chinese AI models, reducing its AI expenses by about half. Chinese AI services like DeepSeek charge $0.87 per million tokens, substantially cheaper than Western alternatives. This cost advantage applies to payments infrastructure too, where efficiency and affordability outweigh national loyalty.

With the US Senate’s crypto legislation stuck and facing several hurdles, China’s rapid progress on crypto rails positions it as a global leader in this critical space.

This article provides informational content and should not be considered financial advice.