In 2026, the Digital Renminbi will start accruing interest, which actually reflects an interesting economic phenomenon.

Let's go back to the basics: why does cash in circulation not earn interest? It's simple—banknotes are just paper; whether you keep them in your pocket, in a drawer, or in a mobile wallet, the denomination numbers will never grow on their own. But here’s the problem—inflation is silently working. Purchasing power shrinks every year, and this is an unavoidable fact.

As for the Digital Renminbi? On the surface, it has changed form—from physical banknotes to electronic data. But fundamentally, it remains a form of cash. The fact that it previously earned no interest indicates that the government regarded it purely as a means of circulation.

Now that an interest-earning mechanism is introduced, what does this shift mean? On one hand, it begins to have some store-of-value properties, encouraging people to hold rather than spend immediately. On the other hand, it also hints at a reality: even official digital currencies need to combat inflation erosion.

In essence, this is not just a policy adjustment but an acknowledgment of an economic law—the purchasing power of cash can only be maintained through some mechanism. Whether in physical or digital form, it cannot escape this fate.