Digital Yuan holdings to earn interest under China's new framework

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Digital Yuan holdings to earn interest under China's new framework The new framework due Jan. 1 will let banks pay interest on clients' e-CNY holdings. By Omkar Godbole , AI Boost | Edited by Sam Reynolds Dec 29, 2025, 7:02 a.m. PBOC to let banks pay interest on clients' digital yuan holdings. What to know : The People's Bank of China will implement a new digital yuan framework on Jan. 1, allowing commercial banks to pay interest on digital currency holdings. The digital yuan will transition from digital cash to digital deposit money. An international digital yuan operations center is proposed for Shanghai, aiming to enhance the currency's global reach. The People's Bank of China (PBOC) will launch a new digital yuan framework on Jan. 1, letting commercial banks pay interest on holdings in a move to incentivize broader adoption of the central bank digital currency. The so-called "action plan" will shift the digital yuan (e-CNY) from its current role as digital cash to digital deposit money, Lu Lei, a deputy governor of the People's Bank of China, wrote in an article published by state newspaper Financial News. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . "The future digital yuan will be a modern digital payment and circulation means issued and circulated within the financial system, with technical support and supervision provided by the central bank, possessing the attributes of commercial bank liabilities, based on accounts, compatible with distributed ledger technology, and having the functions of a measure of monetary value, store of value, and cross-border payment," Lei wrote. The plan also proposes to establish an international digital yuan operations centre in Shanghai. The PBOC began working on the digital yuan program in 2014 under the name of the Digital Currency Electronic Payment or DCEP project to research benefits of the CBDC. The central bank launched the digital yuan in April 2022. Since then, it has airdropped e-CNY as part of a pilot program to encourage adoption. CNY e-CNY Yuan Digital Yuan China AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You State of the Blockchain 2025 By CoinDesk Research Dec 19, 2025 Commissioned by Input Output Group L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below. What to know : 2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns. This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026. View Full Report More For You Most Influential: Vlad Tenev By Francisco Rodrigues | Edited by Cheyenne Ligon Dec 17, 2025 Robinhood has acquired Bitstamp, launched staking services for ether and solana, and added new tokens for US users, including XRP, SOL, and BNB. Read full story Latest Crypto News XRP and Cardano need to prove they're useful beyond just fans, Mike Novogratz says 9 minutes ago Bitcoin tops $90,000, Oil rises as Russia-Ukraine peace hopes falter 2 hours ago Ethereum’s ‘Hegota’ upgrade slated for late 2026 as devs accelerate roadmap 16 hours ago Altcoins outpace bitcoin as precious metals' historic rally keeps macro focus sharp 19 hours ago Coinbase says three areas will dominate the crypto market in 2026 22 hours ago Price-action of dog memecoins dogecoin, shiba inu muted amid thin holiday liquidity Dec 27, 2025 Top Stories Coinbase says three areas will dominate the crypto market in 2026 22 hours ago Altcoins outpace bitcoin as precious metals' historic rally keeps macro focus sharp 19 hours ago Ethereum’s ‘Hegota’ upgrade slated for late 2026 as devs accelerate roadmap 16 hours ago Trust Wallet users lose $7 million to hacked Chrome extension Dec 26, 2025 Coinbase named a top three 2026 fintech pick at Clear Street Dec 26, 2025 Bitcoin’s $70,000 to $80,000 zone highlights gap in historical price support Dec 25, 2025