e-CNY Becomes Interest-Bearing Deposit in 2026 System Overhaul

China's central bank will officially launch a new generation framework for its digital yuan on January 1, 2026, fundamentally altering its design to function as a bank deposit rather than digital cash. The new 'Action Plan' detailed by PBoC Deputy Governor Lu Lei marks the transition from a 'digital cash 1.0' to a 'digital deposit money 2.0' model. Under this structure, e-CNY held in commercial bank-operated wallets will be classified as bank liabilities, subjecting them to the same deposit reserve requirements as traditional funds. Furthermore, banks will be permitted to pay interest on these digital yuan balances, aligning the CBDC directly with the existing financial system and mitigating risks of financial disintermediation.

Pilot Phase Reached 16.7 Trillion Yuan in Transaction Value

The shift to an institutionalized framework builds upon a decade of extensive testing that has already achieved significant scale. As of November 2025, the digital yuan pilot program had processed 16.7 trillion yuan in cumulative transaction value across 3.48 billion individual transactions. Adoption has expanded to 230 million personal wallets and 18.84 million corporate wallets. The trials have spanned numerous sectors including retail, public services, and cross-border payments, demonstrating the system's capacity for handling a high volume of diverse use cases before its official, system-wide integration.

Cross-Border Transactions Hit 387 Billion Yuan via mBridge

The e-CNY's strategic development extends beyond domestic use, with a strong focus on enhancing international payment efficiency. The multi-nation mBridge CBDC project has processed 4,047 cross-border transactions valued at 387.2 billion yuan, with the digital yuan accounting for approximately 95.3% of the total transaction value. To advance this initiative, China plans to establish a digital yuan international operations center in Shanghai. This center will leverage blockchain technology to support cross-border trade and investment, aiming to create a 24/7 settlement system that lowers costs and facilitates China's goal of greater institutional openness in global finance.