China’s Digital Yuan to Become Interest-Bearing Under New 2026 Framework
China's central bank will allow commercial banks to pay interest on digital yuan balances starting January 1, 2026.Summary
The People's Bank of China (PBoC) announced that starting January 1, 2026, commercial banks will be permitted to pay interest on verified digital yuan (e-CNY) wallet balances, transforming the digital currency from digital cash to digital deposit money. This change is part of a new action plan reflecting lessons from nearly a decade of pilots, aiming to boost adoption while maintaining central bank control via a two-tier structure where the PBoC sets core infrastructure and commercial banks handle wallets and compliance. As of November 2025, the e-CNY had processed 3.48 billion transactions totaling 16.7 trillion yuan. This advancement in China's Central Bank Digital Currency (CBDC) occurs alongside intensified regulatory enforcement against cryptocurrencies, including recent shutdowns of Bitcoin miners and warnings against real-world asset tokenization.
(Source：BeInCrypto)