Overview
- Starting January 1, 2026, commercial banks that operate digital yuan wallets will pay interest on e-CNY balances, according to PBOC vice-governor Lu Lei.
- The e-CNY shifts from a cash-like model to account-based "digital deposit money," becoming a commercial-bank liability under central bank oversight.
- Experts say the redesign moves the digital yuan from M0 to M1 and aligns it more closely with traditional deposits, though potential inclusion in M2 remains unclear.
- The action plan introduces liquidity-based wallet categories and reserve requirements for bank-type operators, with specific reserve levels still to be set.
- Officials and analysts expect the changes to bolster adoption after years of limited uptake, with cross-border use a goal despite hurdles such as the BIS withdrawal from Project mBridge.