China Digital Yuan Interest Plan Starts Jan 2026

China's central bank is implementing a new framework for the digital yuan (e-CNY) that permits commercial banks to begin paying interest on digital wallet balances starting January 1, 2026. According to Lu Lei, Deputy Governor of the People's Bank of China (PBOC), this move transitions the digital yuan from a cash substitute era into a "digital deposit currency" era, equipping it with functions for monetary value scale, storage, and cross-border payment. This "Action Plan" aims to accelerate e-CNY adoption and build supporting infrastructure, including the recent establishment of the RMB International Operations Center in Shanghai to boost cross-border settlement. While the PBOC suggests this promotes financial inclusion, critics, like Alex Gladstein of the Human Rights Foundation, express concern that it grants the central bank greater control over payments and access denial capabilities, contrasting with the US approach where former President Donald Trump has banned the creation of a CBDC.

(Source：Cointelegraph)