Analysis: Interest-bearing digital yuan will absorb the efficiency of tokenized deposits and restructure monetary debt relationships.

According to TechFlow, on January 3rd, the Hong Kong media outlet Ta Kung Pao published an article titled "Interest-Paying Digital RMB Empowers Hong Kong's Financial Innovation," which pointed out that interest will be paid on digital RMB wallet balances starting January 1, 2026, marking the beginning of the "Digital Deposit Currency 2.0" era. Digital RMB 2.0 restructures the monetary-debt relationship through institutional innovation, somewhat similar to tokenized deposits promoted by commercial banks (such as JPMorgan Chase's JPM Coin), but creating a new hybrid form: absorbing the efficiency of tokenized deposits while maintaining the core of sovereign currency credit. Interest payments enhance the credit appeal of the digital RMB as a currency for the issuance and settlement of tokenized assets in Hong Kong, giving it the attributes to compete with offshore RMB deposits in Hong Kong.