China's yuan global ambition faces payments hurdle

The China International Payments System (CIPS) that is to replace a patchwork of networks and allow hassle-free yuan payments is meant to debut later this year, but bankers say it is unlikely to be ready before 2016 - Reuters Photo.

BEIJING/HONG KONG: China's quest to turn its yuan into a full-fledged global currency has hit a road-block as the planned roll-out of a worldwide payments superhighway looks certain to get delayed because of policy snags and technology challenges.

But to attain the dollar's status as the world's reserve currency, China needs to back its yuan with a quality payment system. The dollar is supported by two -- the privately-owned CHIPS system, with an average daily transaction volume of US$1.5tril and the Federal Reserve's Fedwire handling around US$3.5tril.