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China Overhauls Digital Yuan, Making e‑CNY Interest‑Bearing From January 2026

The shift aims to spur use by aligning wallets with insured bank deposits while allowing banks to pay interest.

Overview

  • An official Action Plan from the PBOC moves the e‑CNY from a cash-like model to account‑based digital deposit money effective January 1, 2026.
  • Commercial banks operating verified wallets will pay interest on balances, and those balances will be covered by China’s deposit insurance system.
  • Digital yuan holdings at banks will be included in deposit reserve calculations, while participating non‑bank payment firms must keep 100% reserves.
  • The framework retains a two‑tier structure with the central bank setting rules and infrastructure as banks manage wallets, and it remains compatible with smart contracts and distributed‑ledger elements.
  • New governance and infrastructure include a Digital RMB Management Committee and an international operations center in Shanghai, with plans to expand cross‑border pilots involving Singapore, Thailand, Hong Kong, the UAE and Saudi Arabia; the PBOC cites 3.48 billion transactions totaling 16.7 trillion yuan through November 2025.