In a significant development for the digital currency landscape, China’s central bank has announced that it will permit banks to offer interest on digital yuan wallets starting January 1, 2026. This move is set to transform the e-CNY into a more deposit-like form of money, contrasting with the US’s stance on Central Bank Digital Currencies (CBDCs).
The People’s Bank of China is introducing a new framework for the digital yuan, enabling commercial banks to pay interest on e-CNY wallet balances from January 1, 2026. According to officials, this development will propel the CBDC beyond its initial purpose as a mere cash substitute, marking a significant evolution in digital currency adoption.
The updated CBDC framework will allow banks to integrate the digital yuan into their asset-liability operations. Lu Lei, a deputy governor of the People’s Bank of China, highlighted this development in an article published by Sina Finance on Monday, which was originally featured in a PBOC-affiliated China Financial News piece.
As Lei noted in the report, “The digital RMB will transition from the digital cash era to the digital deposit currency (Digital Deposit Money) era, boasting functions such as monetary value scale, value storage, and cross-border payment.” This shift underscores China’s commitment to advancing its digital currency ecosystem.
For more information on this significant development in the world of digital currencies, read more.
