China’s central bank will allow commercial banks to pay interest on digital yuan wallet balances starting 1 January 2026, marking a major shift in the role of the e-CNY.
The move positions the digital yuan as deposit-like money rather than a simple digital replacement for cash.
The policy was outlined by Lu Lei, a deputy governor of the People’s Bank of China, in a report published by China Financial News and republished by Sina Finance.
The new framework allows banks to integrate e-CNY balances into their asset and liability management systems.
The digital RMB will move from the digital cash era to the digital deposit currency era.
Lu Lei said.
It has the functions of monetary value scale, value storage, and cross-border payment.
Lu Lei stated.
The change represents one of the most significant upgrades to China’s central bank digital currency since pilot programmes began.
Cryptocurrency trading and stablecoins remain banned in mainland China despite the continued expansion of the digital yuan.
Chinese regulators view the e-CNY as a state-backed alternative that can leverage blockchain-style infrastructure under centralised control.