China's Central Bank to Allow Interest on Digital Yuan Wallets Starting 2026
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 29 2025- New Digital Currency Framework: The People's Bank of China plans to allow commercial banks to pay interest on digital yuan wallet balances starting January 1, 2026, a move that will push the digital yuan beyond its original role as a cash substitute and enhance its function as digital deposit money.
- Asset-Liability Management: The new framework will enable banks to treat the digital yuan as part of their asset-liability operations, thereby increasing the efficiency of financial institutions' utilization of digital currency and modernizing the financial system.
- Infrastructure Development: The central bank's “Action Plan” aims to expand the national use of the digital yuan and build the necessary financial infrastructure to support the widespread application and cross-border payment capabilities of the digital currency.
- Financial Inclusion Concerns: While the central bank claims that the digital yuan will promote financial inclusion, there are concerns about increased control over payments by the central bank, potentially leading to greater monitoring and control over individual finances.
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.
