China’s digital yuan to start earning interest in 2026
China’s digital yuan (e-CNY) will become the world’s first interest-bearing central bank digital currency starting January 1, 2026.
Under the new framework, e-CNY holdings stored in digital wallets will generate interest based on demand deposit rates, marking a shift from “digital cash” to “digital deposits.” The move aims to boost adoption, expand usage scenarios, and strengthen China’s global leadership in central bank digital currencies, News.Az reports, citing Reuters.
Currently, e-CNY is mostly used by government agencies and state-owned companies, while mainstream digital payments through Alipay and WeChat Pay largely bypass the central bank currency.
The People’s Bank of China (PBOC) has also intensified efforts to promote e-CNY internationally, establishing a global operation centre in Shanghai and encouraging more commercial banks to participate in e-CNY services. A new regulatory framework for digital yuan measurement, management, and operations will also take effect on January 1, 2026.
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