The People’s Bank of China will implement a new framework on January 1, allowing commercial banks to pay interest on digital yuan holdings, a move aimed at boosting adoption of the central bank digital currency. The change represents a structural shift in how the e-CNY functions within China’s financial system, according to state-linked disclosures.
Under the new framework, the digital yuan will transition from a digital cash substitute to a form of digital deposit money. This would align the e-CNY more closely with commercial bank liabilities, enabling it to function as a store of value alongside traditional deposit accounts. The framework is designed to operate under central bank oversight while remaining compatible with distributed ledger technology.
The plan also includes a proposal to establish an international digital yuan operations center in Shanghai, signaling China’s intent to expand the currency’s cross-border role. The move reflects broader institutional efforts to modernize payment infrastructure and strengthen monetary control through programmable digital money.
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