From January 1, 2026, Chinese commercial banks will be allowed to pay interest to customers depositing e-CNY. This regulation will make e-CNY the world's first central bank digital currency capable of generating interest...
The People's Bank of China (PBOC) is preparing a pivotal step in the development of the digital yuan (e-CNY). Starting January 1, 2026, commercial banks in the country will be allowed to pay interest to customers who deposit e-CNY.
According to China Central Television (CCTV), this regulation will make e-CNY the world's first central bank digital currency capable of generating interest. This officially XEM the transition of e-CNY to the "digital deposit" phase, rather than remaining merely a "digital currency" as initially Vai .
CCTV believes that paying interest to customers who deposit e-CNY will contribute to increasing user acceptance, expanding usage scenarios in the economy, and strengthening China's pioneering position in the testing and deployment of its central bank digital currency.
According to the new regulations, e-CNY can be included in the balance sheets of commercial banks. This direction was clarified by Lu Lei, Vice Governor of the People's Bank of China, in an article published in the China Financial Times.
Despite aggressively promoting the development of CBDCs, China maintains a tough stance on cryptocurrencies and stablecoins, with strict bans. Beijing's approach is to leverage the efficiency and technological advantages of blockchain infrastructure, but place everything within the framework of a state-issued and tightly controlled digital currency.
This strategy stands in stark contrast to U.S. policy. President Donald Trump signed an executive order banning the establishment of CBDCs, arguing that central bank-issued digital currencies could threaten the stability of the financial system, infringe on personal privacy, and undermine national sovereignty.
The executive order signed on January 23rd prohibits the creation, issuance, distribution, or use of CBDCs within the United States.
While saying "no" to CBDCs, the US is accelerating the completion of the legal framework for stablecoins. Last July, Donald Trump signed into law the National Guidelines and Innovation Establishment Act for US Stablecoins (GENIUS).
This is considered the first comprehensive legal framework in the US for stablecoins, with strict regulations on collateral assets and requiring issuers to strictly adhere to anti-money laundering standards.
Conversely, China continues to promote the popularization of the digital yuan through a program called the "Action Plan to Further Enhance the Digital Yuan Management Service System and Build Related Financial Infrastructure."
The plan aims to expand the nationwide use of e-CNY while simultaneously developing the financial infrastructure to support this digital currency.
Last September, the People's Bank of China established the RMB International Operations Center in Shanghai. This center is built as a blockchain-based service platform, aiming to develop on-chain payment tools and cross-chain remittance capabilities, thereby promoting the use of e-CNY in cross-border payment transactions.
According to the People's Bank of China, the digital yuan not only serves the goal of modernizing the monetary system, but can also contribute to expanding access to financial services for a wider range of people.
However, at present, the use of e-CNY remains quite limited. This digital currency is mainly deployed in a few government agencies and state-owned enterprises, while the majority of digital payment transactions in China are still conducted through popular platforms such as Alipay and WeChat Pay, which do not directly use e-CNY.
