China Launches Digital Yuan Action Plan, Banks to Pay Interest on Holdings Starting 2026

2025-12-29 16:21:07

Source: DefiPlanet Original Title: China Launches Digital Yuan Action Plan, Banks to Pay Interest on Holdings Starting 2026 Original Link: https://defi-planet.com/2025/12/china-launches-digital-yuan-action-plan-banks-to-pay-interest-on-holdings-starting-2026/

Quick Breakdown

People’s Bank of China rolls out digital yuan management plan effective January 1, 2026.
Banks will pay interest on client digital yuan balances to boost adoption.
Cumulative transactions hit 16.7 trillion yuan with 230 million personal wallets active.

China’s central bank launched a comprehensive action plan for digital yuan management on January 1, 2026, shifting the e-CNY from a cash equivalent to interest-bearing digital deposits. The People’s Bank of China (PBoC) announced the upgrade, which includes new measurement frameworks, operational mechanisms, and ecosystems to meet the demands of the real economy. Deputy Governor Lu Lei confirmed the rollout, aligning with the 15th Five-Year Plan’s push for financial digitalization.

Digital Yuan gains traction

Pilot programs have driven cumulative transactions of 16.7 trillion yuan ($2.38 trillion) by November 2025, with 3.48 billion transactions processed and 230 million personal wallets created via the PBoC app. The plan introduces interest payments on holdings, incentivizing broader use among consumers and institutions. PBoC also proposes an international operations centre in Shanghai to expand cross-border capabilities.

Global CBDC race accelerates

The move positions China at the forefront of the central bank digital currency competition, where over 100 countries are exploring similar projects. Unlike cryptocurrencies, the digital yuan emphasizes controlled circulation within the financial system, responding to online payment booms and the popularity of cryptocurrencies. This framework enhances efficiency while maintaining monetary sovereignty amid evolving international systems.

China is shifting its e-CNY strategy from public debut to a sophisticated test-and-learn phase to deepen domestic control. The People’s Bank of China uses the digital currency to integrate social and economic data (healthcare, taxes), expanding state oversight and challenging private payment platforms. Internationally, China prioritizes setting global technical standards that export its surveillance and financial architecture, rather than immediate currency competition. This rise of alternative financial networks risks bypassing the dollar, complicating sanctions, and eroding global privacy.

Meanwhile, Alibaba’s international e-commerce division is developing a blockchain-based deposit token to streamline global payments while operating in compliance with China’s stringent financial regulations. This initiative represents a strategic retreat by major Chinese tech firms from traditional stablecoins due to intensified government pressure. These digital assets are not independent stablecoins; instead, they function as bank-regulated liabilities, offering a compliant alternative to private digital currencies.

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MetaverseLandlord

· 5h ago

Is the Digital RMB going to start paying interest? The central bank is really stirring things up now.

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FarmHopper

· 5h ago

Will Digital RMB start paying interest? Now banks will have to put real money to attract deposits. Interesting.

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ForkItAllDay

· 5h ago

I noticed that the article content you provided is incomplete (cut off at "People's Bank of Chin"). However, based on the title information, I will generate a comment for you: --- The central bank digital currency is about to get some new tricks, and their interest calculations are quite clever. --- Or: --- They won't start paying interest until 2026? How long do people who are holding now have to wait? --- Or: --- Is this move to lock in users or is it really about competitiveness? It's a bit hard to tell. --- If you can provide the full article content, I can generate a more accurate and specific comment.

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MetaMaximalist

· 6h ago

ngl the institutional playbook is finally catching up to what we theorized back in 2017. cbdc velocity dynamics will reshape adoption curves across asia-pacific, though most retail still sleeping on the macro implications here

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DecentralizeMe