China’s central bank announced a major overhaul of its digital yuan, allowing commercial banks to pay interest on e‑CNY balances starting Jan. 1, 2026. The new framework upgrades the currency from simple digital cash to “digital deposit money,” aligning it closer to traditional bank deposits and expanding its monetary functions. Deputy Governor Lu Lei emphasized that the move follows over a decade of pilot programs, aiming to boost adoption, enhance financial utility, and make the e-CNY more attractive compared to private digital payment systems.
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