Xinhua News Agency, Beijing, December 30th – An article published in the China Securities Journal on the 30th, titled “Digital Yuan to be Upgraded: Interest Payments to Begin on January 1st Next Year,” states that the digital yuan is undergoing an upgrade, with the long-awaited interest-paying function set to be officially implemented.
The China Securities Journal learned from the People’s Bank of China on December 29th that the new generation of digital yuan’s measurement framework, management system, operating mechanism, and ecosystem will be officially launched and implemented on January 1, 2026.
Lu Lei, Vice Governor of the People’s Bank of China, explained that according to the institutional arrangements, digital yuan held by customers in commercial bank wallets is an account-based liability for commercial banks, marking the transition of the digital yuan from cash-type version 1.0 to deposit-money-type version 2.0. The action plan clarifies that banking institutions will pay interest on customers’ real-name digital yuan wallet balances, adhering to the self-regulatory agreement on deposit interest rate pricing.
Meanwhile, experts stated that digital yuan deposits are included in the deposit insurance coverage. If the operating commercial bank experiences risks, depositors’ digital yuan deposits can enjoy a maximum limit of 500,000 yuan in compensation protection.
The implementation of interest payments for the digital yuan will bring dual benefits to commercial banks and the public. On the one hand, for commercial banks, this adjustment will significantly stimulate their motivation to participate in the operation of the digital yuan.
In terms of operating institutions, there are currently 10 designated operating institutions for the digital yuan, including 6 large state-owned commercial banks, 2 joint-stock commercial banks, and 2 internet banks. The China Securities Journal has learned that the central bank is promoting the expansion of the number of operating institutions.