Implementing the digital yuan in global trade payments : A strategic framework for central bank digital currency integration

China’s digital yuan (e-CNY) is developing into a central bank digital currency with the capacity to transform inter-regional payment mechanisms as well as settlement processes. This study presents a three-tier strategic framework, emphasising e-CNY’s potential to streamline payments, reduce reliance on the US dollar and promote effective participation in transnational trade systems. This framework, covering technical infrastructure, regulatory governance and market alignment, is validated by the China–UAE trade case and the mBridge pilot project. Research indicates that while e-CNY adoption has gained noteworthy prominence in Chinese regional trade networks, its acceptance at the global level remains challenging due to rising operational and regulatory concerns. The findings outline that e-CNY demonstrates strong capabilities in cost reduction and real-time settlement, yet it is facing challenges related to transparency, privacy safeguards and differences in transnational governance frameworks. The study offers practical implications for policymakers and regulatory authorities in comprehending the digital currency-enabled international trade finance structures. The proposed policy-oriented framework guides the effective integration of future digital currencies in transnational trade practices. The outcomes suggest that regulatory harmonisation and bilateral coordination on CBDC interoperability are crucial for simplifying e-CNY’s trade compliance. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.