New rules set for digital yuan in 2026

With trillions of yuan already processed, the digital yuan is moving from experimental payments tool to a fully embedded component of China’s banking system.

China will reclassify the digital yuan as deposit money from 2026, requiring banks to pay interest and integrate e-CNY balances into core financial systems.

China’s central bank has confirmed that a revised digital yuan framework will enter force on 1 January 2026, redefining the e-CNY as a form of digital deposit money rather than a cash substitute.

The upgraded framework adds new standards and rules, based on a decade of domestic and cross-border pilot programmes. Usage already spans retail payments, public services, healthcare, education, tourism, and international settlements.

Under the new plan, digital yuan balances held in commercial bank wallets will be classified as bank deposit liabilities. Banks must pay interest on these holdings, which will be insured and included in regular asset-liability management.

Digital yuan operations will also be folded into China’s reserve requirement system. Wallet balances at authorised banks will count towards reserve calculations, while non-bank payment institutions must hold full reserves against the digital yuan they administer.

By late November 2025, cumulative transactions had reached 3.48 billion, with a total value of 16.7 trillion yuan.

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