China to Allow Interest on Digital Yuan from 2026, Expanding Cross-Border Pilots
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 29 2025- Currency Transformation: The People's Bank of China announced that starting January 1, 2026, banks will be allowed to pay interest on digital yuan wallets, transitioning e-CNY from 'digital cash' to an interest-bearing 'digital deposit currency', which is expected to enhance public acceptance of the digital yuan.
- Regulatory Framework Adjustment: Under the new regulations, banks can remunerate verified digital wallets based on traditional deposit interest rate agreements, providing greater flexibility in asset-liability management, while non-bank payment firms must maintain a 100% reserve ratio in digital yuan to ensure fund safety.
- Cross-Border Pilot Expansion: The PBOC plans to initiate new cross-border digital yuan pilots with countries including Singapore, Thailand, Hong Kong, UAE, and Saudi Arabia, aiming to promote the use of digital yuan in international payments and enhance its global influence.
- Transaction Volume Growth: As of November 2025, the digital yuan has processed 3.48 billion transactions, indicating gradual penetration into the domestic market, despite facing competition from established platforms like WeChat Pay and Alipay.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
