The post Digital yuan shifts to interest-bearing deposits from Jan. 1, 2026 appeared on BitcoinEthereumNews.com.

China will let banks pay interest on digital yuan wallets from Jan. 1, 2026, turning e‑CNY into a digital deposit currency and expanding cross‑border pilots. Summary PBOC will let banks pay interest on verified digital yuan wallets, shifting e‑CNY from “digital cash” to a deposit currency with full deposit insurance coverage.​ Non-bank payment firms must hold 100% reserves in digital yuan, while banks gain more flexibility to manage e‑CNY in asset‑liability operations.​ China plans new cross‑border pilots with Singapore, Thailand, Hong Kong, UAE and Saudi Arabia to extend digital yuan use beyond domestic retail payments. China’s central bank announced plans to transform the digital yuan into an interest-bearing deposit currency beginning January 1, 2026, according to a statement from the People’s Bank of China. China exploring digital yuan Banks will be permitted to pay interest on customers’ digital yuan deposits under the new regulatory framework, the PBOC stated. Lu Lei, deputy governor of the central bank, outlined the changes in an article published in Financial News, a state-run newspaper. The digital yuan will transition from its current function as electronic cash to become a “digital deposit currency,” Lu stated. The evolution follows a decade of pilot programs and field testing, according to the central bank. Beijing has encountered challenges in driving widespread adoption of the payment instrument among citizens, despite official testing having commenced in 2019. The digital yuan has been characterized as one of the most technologically advanced central bank digital currencies globally, according to industry observers. Under the new framework, banks will be authorized to remunerate verified digital wallets according to existing self-regulatory agreements used for setting interest rates on traditional deposits. Digital yuan balances will receive the same protections as conventional bank deposits through the national deposit insurance system, the PBOC stated. The reform provides banks with greater operational…

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Filed under: News - @ December 29, 2025 12:27 pm