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China Moves Digital Yuan to Interest-Bearing Deposits Starting Jan. 1, 2026

The move seeks to boost use by aligning e‑CNY with bank deposits under full prudential oversight.

Overview

  • Digital yuan balances held at commercial banks will be treated as deposits for reserve purposes, while non‑bank payment firms must maintain a 100% e‑CNY reserve.
  • e‑CNY wallet holdings will be protected by China’s deposit insurance system, and banks will gain greater flexibility to manage these balances within asset‑liability operations.
  • The framework establishes new governance structures, including a Digital RMB Management Committee, dual domestic and cross‑border operating centers, and an international operations center in Shanghai.
  • The technical architecture will merge account features, token strings, and smart contracts, upgrading wallets to digital accounts and enabling programmable payments.
  • China plans expanded cross‑border pilots naming Singapore, Thailand, Hong Kong, the UAE, and Saudi Arabia, as usage to November 2025 reached 3.48 billion transactions totaling 16.7 trillion yuan.