As reported by Crypto.News, China’s central bank announced plans to allow banks to pay interest on digital yuan wallets starting January 1, 2026, transforming e-CNY into a deposit currency with full deposit insurance. The reform grants banks greater flexibility in managing e-CNY balances while requiring non-bank payment firms to hold 100% reserves in digital yuan. The PBOC also plans cross-border pilots with Singapore, Thailand, Hong Kong, UAE, and Saudi Arabia to expand the digital yuan’s use beyond domestic retail payments.
China to Launch Interest-Bearing Digital Yuan from Jan. 1, 2026
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Summary
China’s central bank announced new digital asset regulation, revealing plans to allow banks to pay interest on digital yuan wallets starting January 1, 2026. This reform aims to turn e-CNY into a deposit currency with full deposit insurance and enhances CFT (Countering the Financing of Terrorism) measures. Banks will gain more flexibility in managing e-CNY balances, while non-bank payment firms must hold 100% reserves. Cross-border pilots with Singapore, Thailand, Hong Kong, UAE, and Saudi Arabia will expand digital yuan usage beyond retail.
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