China’s Major Banks to Pay Interest on Digital Yuan Wallets

Starting January 1, 2026, six major Chinese state-owned banks will begin accruing interest on digital RMB wallet balances, aligning with a new framework established by the People’s Bank of China.

This initiative integrates digital yuan into the banking system, highlighting China’s strategy to transform its CBDC into a tool for financial inclusion and global transactions.

China to Integrate Digital Yuan into Banking Sector by 2026

China’s six largest state-owned banks—ICBC, ABC, BOC, CCB, BOCOM, and PSBC—have announced they will pay interest on real-name digital RMB wallets at the prevailing deposit rates. The People’s Bank of China (PBOC), led by Deputy Governor Lu Lei, has clarified that this policy applies to Type I, II, and III wallets. BOCOM has stated that balances in Type IV wallets will not accrue interest.

Implications include the classification of digital yuan balances as deposit liabilities for these banks, ensuring they are protected by deposit insurance. This marks a strategic alignment with current banking frameworks, reflecting China’s push to modernize financial assets and support digital adoption globally.

Market reactions have been muted due to the nature of the digital yuan not affecting decentralized cryptocurrencies. No notable responses or statements from significant stakeholders have emerged. Observers note the potential repercussions on the banking sector’s regulatory and asset management frameworks.

Record Digital Yuan Transactions and Financial Infrastructure Outlook

Did you know? In 2025, the cumulative transaction volume of the digital yuan hit 3.48 billion, totaling approximately 16.7 trillion yuan ($2.37 trillion USD), reflecting its growing influence.

Ethereum (ETH) currently trades at $2,980.35 with a market cap of $359.71 billion, experiencing a 0.25% increase in the past 24 hours. Its dominance stands at 12.11%, with a 24-hour trading volume of $15.63 billion, according to CoinMarketCap data updated on January 1, 2026.

“The new framework makes e-CNY account-based, compatible with distributed ledger technology, carrying commercial bank liability attributes, supporting store-of-value and cross-border use, with a proposed international operations center in Shanghai,” said Lu Lei, Deputy Governor of the People’s Bank of China.

According to the Coincu research team, PBOC’s digital yuan initiative reflects a notable shift in digital asset governance. The integration within traditional banking systems may bolster cross-border financial infrastructure while increasing regulatory scrutiny. Such advancements suggest a blending of digital and fiat ecosystems.