Keywords: Digital RMB (e-CNY), Digital Currency, Financial Technology, Central Bank Digital Currency (CBDC)
The People’s Bank of China (PBOC) has announced that a new-generation digital yuan system will officially launch on January 1, 2026. This transition signifies a shift from the “digital cash era” to the “digital deposit currency era” for China’s central bank digital currency (CBDC).
By the end of November 2025, the digital yuan had already processed a cumulative 3.48 billion transactions, with a total value reaching 16.7 trillion yuan. Over 230 million individual wallets have been opened.
Systemic Upgrade and User Benefits
This upgrade represents a pivotal moment. Based on a decade of pilot experience, the PBOC will implement an action plan to strengthen the management and infrastructure of the digital yuan.
The core change is the transformation from “digital cash” to a digital deposit currency. Under the new system, commercial banks will pay interest on balances in verified digital yuan wallets—initially at the demand deposit rate—effectively solving the previous lack of incentive for users to hold the currency.
Enhanced Security and Global Reach
Concurrently, security is being elevated. Wallet balances managed by banks will be protected by deposit insurance, offering the same safety guarantee as traditional bank deposits. For non-bank payment institutions involved in operations, a 100% digital RMB reserve requirement is mandated.
While the domestic system advances, internationalization is accelerating. A dedicated international operations center launched in Shanghai in 2025. Cross-border platforms like “mBridge” have significantly reduced settlement times for transactions from days to seconds. Pilot applications, such as merchant acquisition services in Hong Kong and direct QR code payments for Chinese tourists in Laos, are expanding its global footprint.
Rapidly Expanding Use Cases
Application scenarios are diversifying rapidly. Domestically, pilots have successfully integrated the digital yuan with public services like highway tolls, enabling automatic fee deduction via ETC systems. The latest PBOC data shows vigorous growth, with cumulative transaction value in pilot areas reaching 14.2 trillion yuan by the end of September 2025.
As the new year begins, China’s monetary system enters a fresh phase. From earning interest and cross-border payments to everyday consumption, the digital yuan is weaving a more intelligent and efficient financial ecosystem, making its evolution a key global finance story for 2026.
Key Data Snapshot (as of Nov 2025):
- Cumulative Transactions: 3.48 billion
- Cumulative Transaction Value: 16.7 trillion yuan
- Individual Wallets Opened: 230 million