by Kenneth Schortgen, Shotgun Economist:

It appears that for the longest time one of the largest barriers in seeing the Chinese currency expand internationally was due to their complex language and the inability for Western payment systems to easily process Yuan based transactions. But that could soon be changing as the SWIFT system is on the cusp of localizing its processes to allow for easier access to currency use in alternative languages.

As China globalises its economy, builds itself an international financial centre and internationalises the yuan, one obstacle has steadfastly stood in the way: the Chinese language.

The limited use in global finance and business of the language because of its complexity, said analysts, would have hindered Beijing’s efforts to increase the use of the yuan in global payments and transactions.

That may change as global financial messaging provider Society for Worldwide Interbank Financial Telecommunication (SWIFT) localises its technologies to support the Chinese language, a move to draw more mainland Chinese institutions into its network and help them converge with international market practices. – South China Morning Post

China currently has its own SWIFT type system known as the CIPS which has allowed them to expand trade on a bi-lateral basis.  But once they get fully integrated into the Western based SWIFT system to record currency swaps and exchanges without needing a separate conduit due to language, then recognition and acceptance of the Yuan as a global currency could very easily become on par with the dollar, euro, yen, and pound, and could eventually lead to it becoming part of a global reserve basket of currencies when the next financial and monetary system takes shape.

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