An upgraded framework for digital yuan management will take effect on January 1, 2026, moving the e-CNY beyond a cash-like instrument toward a form of digital deposit money, the People’s Bank of China (PBOC) has announced.
The enhanced system will introduce a new measurement framework, management system, operational mechanisms and ecosystem for the digital yuan, the central bank said.
The transition builds on extensive domestic and cross-border trials that have seen the digital yuan adopted across a wide range of daily uses, including retail transactions and cross-border settlements, establishing a reliable and scalable model for both online and offline scenarios.
The PBOC has unveiled an action plan to strengthen the digital yuan’s management system and supporting financial infrastructure, guided by a decade of pilot program experience. The plan establishes the operational basis for classifying digital yuan held in commercial bank wallets as bank deposit liabilities.
Commercial banks will be required to pay interest on digital yuan wallet balances in line with prevailing deposit rate regulations under the plan. These balances will be integrated into banks’ regular asset-liability management practices and will be protected by deposit insurance, just like ordinary bank deposits.
The PBOC will also incorporate digital yuan operations into its reserve requirement framework. Wallet balances held with authorised commercial banks will be counted toward the reserve requirement calculation base, while non-bank payment institutions must deposit 100 per cent reserves against the digital yuan they manage.
China had recorded 3.48 billion cumulative digital yuan transactions worth ¥16.7 trillion (~$2.37 trillion), as of the end of November 2025.
China’s central bank will upgrade its digital yuan framework from January 1, 2026, shifting the e-CNY from a cash-like tool to digital deposit money.
Commercial banks will pay interest on wallet balances.
Digital yuan balances will also be incorporated into reserve requirement calculations, strengthening regulatory oversight and financial integration.
Fibre2Fashion News Desk (HU)
