Chineseis preparing for one of the most comprehensive policy changes ever in the digital yuan project. With the new decision taken by the Central Bank, commercial banks will be able to pay interest on digital yuan balances and the system will operate differently as of January 1, 2026. The adoption rate, which has remained limited despite nearly ten years of trials, is intended to be increased with the regulation in question. Authorities of the change digital yuanHe emphasizes that Turkey has radically redefined its position within the financial system.
Transformation of Digital Yuan into “Digital Deposit”
Deputy Governor of the Central Bank of China LuLeiIn his assessment published in the state newspaper Financial News, he stated that digital yuan will no longer be seen only as digital cash. With new frame e-CNYwill become an interest-bearing “digital deposit money”. This approach brings the digital yuan closer to classical bank deposits and aims to increase its retention for users.
Within the scope of the system that will come into force on January 1, 2026, commercial banks, verified digital yuan walletsIt will be able to pay interest on the balances held in it. Interest rates will be consistent with existing self-regulatory agreements on deposit pricing. Additionally, digital yuan balances will be protected under China’s deposit insurance system and have similar security as traditional bank accounts.
The regulation concerns not only individual users but also the balance sheet management of banks. Banks will be able to handle digital yuan balances as part of asset-liability management. For non-bank payment institutions, digital yuan reserves will be evaluated in the same status as existing customer funds and a 100 percent reserve ratio will be applied.
Adoption Problem Continues
Despite its technical maturity, the digital yuan is struggling with strong competitors in the domestic market. Especially WeChat Pay And Alipay Established mobile payment systems such as are dominant in China’s cashless payment ecosystem. The Central Bank’s decision to allow interest payments aims to enable users to see the digital yuan as a store of value beyond daily transactions.
According to official data, by the end of November 2025, 3.48 billion transactions were carried out with digital yuan, and the total volume exceeded 16.7 trillion yuan (about 2.38 trillion dollars). Still, officials admit these figures fall short of potential. The new regulation is considered a critical threshold for the digital yuan to gain a more permanent place in the financial system.
China is also accelerating cross-border use of e-CNY. Central bank, Singapore In addition to the pilot study planned with Thailand, Hong Kong, United Arab Emirates And Saudi Arabia It aims to promote CBDC-based payments with markets such as. The e-CNY International Operations Center opened in Shanghai is also part of the strategy to increase the global influence of the yuan. While all these steps are being taken, the ban on cryptocurrency trading and mining continues in mainland China.
