The six major state-owned banks in China—Industrial and Commercial Bank of China , Agricultural Bank of China, Bank of China, China Construction Bank, Postal Savings Bank of China, and Bank of Communications—issued announcements today (31st) stating that starting from January 1, 2026, interest will be paid on the balance of digital RMB wallets (including Class I, Class II, and Class III personal wallets and corporate wallets) opened by customers at the banks, based on the banks' current deposit rate. The interest calculation and settlement rules are completely consistent with those for ordinary current deposits.
Digital RMB will start earning interest from 2026.
This policy applies to wallets with verified identities. Currently, the annualized interest rate for demand deposits at the six major state-owned banks is 0.05%. Interest is generally settled on the 20th of the last month of each quarter and credited to the account the following day, subject to the specific regulations of each bank. Users do not need to perform any additional operations; the system will automatically process the interest calculation.
It is worth noting that digital RMB wallets are divided into four categories, among which the fourth category is anonymous wallets (only requiring a mobile phone number for activation). Their balances do not accrue interest, in order to maintain the function of small-amount anonymous payments. The Bank of Communications announcement explicitly states that the balances of these four types of personal wallets will not accrue interest.
This change stems from the "Action Plan on Further Strengthening the Management and Service System and Related Financial Infrastructure Construction of Digital RMB" released by the People's Bank of China on December 29. This plan marks the upgrade of digital RMB from "digital cash" (interest-free, positioned as M0 in circulation) to "digital deposit money" (interest-bearing, included in bank balance sheets), with deposit insurance coverage for the balance and the potential to expand into more financial services. China thus becomes the first major economy globally to accrue interest on its central bank digital currency (CBDC) balances. This interest-bearing policy is expected to significantly increase users' willingness to hold and use digital RMB, further promoting its adoption both domestically and internationally.
Coinbase Chief Policy Officer Warns: Dollar Hegemony May Be Shaken
In response, Faryar Shirzad (@faryarshirzad), Chief Policy Officer of Coinbase, the largest cryptocurrency exchange in the United States, posted on the X platform on December 31, directly warning China about its digital yuan interest-bearing policy. He pointed out that this move by China transforms the digital yuan from a simple payment tool into an asset with value storage functions, significantly increasing its attractiveness in cross-border payments and asset tokenization.
Shirzad emphasized that asset tokenization is the future trend, and the GENIUS Act passed by the US this year was originally a visionary bill aimed at ensuring that dollar-denominated stablecoins issued under US rules become the primary global settlement tool. However, the bill prohibits stablecoin issuers from directly paying interest, only allowing third parties to provide "rewards." He warned that if the US Senate mishandles the negotiations on market structure bills and further restricts or prohibits these reward mechanisms, it will cause dollar-denominated stablecoins (such as USDC) to lag behind digital yuan at the most unfavorable time, thereby handing over a key competitive advantage to global rivals such as China.
Shirzad criticizes that lobbyists from vested interests always resist change, urging negotiators to prioritize maintaining the dominance of the dollar and the U.S. financial system, rather than simply protecting the interests of traditional institutions.
