PBOC to Pay Interest on Digital Yuan Holdings Starting January 1, 2026
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 30 2025- Interest Payment Initiative: The People's Bank of China will implement an interest payment plan for digital yuan holders starting January 1, 2026, requiring commercial banks to pay interest on CBDC holdings, thereby enhancing the digital yuan's appeal and accelerating its adoption.
- User Habit Transformation: The new framework aims to change user habits by providing interest incentives, positioning the digital yuan not just as digital cash but as a more practical digital deposit currency, encouraging everyday use.
- Liquidity Management Improvement: Interest payments are expected to encourage longer holding periods for the digital yuan, which will provide banks and regulators with clearer insights into liquidity, thus improving financial planning and the effectiveness of monetary policy.
- International Expansion: The new framework also includes plans to establish an international digital yuan operations center in Shanghai, marking a significant step in the central bank's efforts to promote the internationalization of the digital yuan and strengthen its position in the global financial system.
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.
