Published
12/31/2025, 13:32China plans to make the digital yuan an interest-bearing instrument starting next year, strengthening the promotion of its own central bank digital currency (CBDC). This was reported by Reuters, citing state television broadcaster CCTV.
According to the report, starting January 1, 2026, electronic yuan (e-CNY) stored in digital wallets will earn interest at demand deposit rates. This will make China the first country in the world whose central bank digital currency will earn interest income.
CCTV noted that this means the e-CNY will transition from the “digital money” category to the “digital deposit” format. This should increase the appeal of the digital yuan to users and expand its use cases. According to the publication, the innovation will strengthen China's leading position in global developments in central bank digital currencies.
At the moment, the use of the digital yuan in the country remains limited — it is used in certain government agencies and state-owned companies. The bulk of retail payments still go through the private platforms Alipay and WeChat Pay, where e-CNY is used to a limited extent.
Against this backdrop, the People's Bank of China continues to pursue a tough policy on cryptocurrencies. Last month, the regulator confirmed its intention to crack down on illegal operations involving stablecoins, while stepping up the promotion of its own digital instrument.
The central bank has already set up a global operations center in Shanghai to support the international use of the digital yuan and has announced its readiness to expand the participation of commercial banks in e-CNY transactions. In addition, Financial News, published by the People's Bank of China, previously reported on the preparation of an action plan for managing the digital yuan, which will also come into effect on January 1, 2026.
