China will pay interest on the digital yuan starting from January 2026 while the US bans CBDCs

Source: Yellow Original Title: China will pay interest on the digital yuan starting January 2026 while the US bans CBDCs

Original Link: https://yellow.com/es/news/china-pagará-intereses-sobre-el-yuan-digital-desde-enero-de-2026-mientras-ee-uu-prohíbe-las-cbdc China will allow commercial banks to pay interest on digital yuan in wallets starting January 1, 2026, transforming the world’s most advanced central bank digital currency into a deposit-like instrument.

The policy change comes as the United States moves in the opposite direction, having completely banned CBDCs this year.

Lu Lei, Deputy Governor of the People’s Bank of China, announced the change on Monday in the state-run Financial News.

The digital yuan will shift from being “digital cash” to “digital deposit currency,” Lei wrote.

What happened

Commercial banks will pay interest on verified e-CNY wallets according to existing deposit rate agreements.

Digital yuan balances will be fully protected under China’s deposit insurance system.

Banks gain greater flexibility to manage the digital yuan as part of their asset and liability operations.

By November 2025, China had processed 3.48 billion transactions in digital yuan worth 16.7 trillion yuan (2.38 trillion dollars).

The framework is based on a decade of pilot programs that began in 2019.

China is simultaneously expanding its cross-border digital yuan initiatives. Planned pilots include Singapore, Thailand, Hong Kong, the United Arab Emirates, and Saudi Arabia.

The PBOC opened its e-CNY International Operations Center in Shanghai in September to support the yuan’s global influence.

Why it matters

Interest payments aim to boost adoption of the digital yuan, which has struggled against dominant mobile payment platforms.

The measure starkly contrasts with US policy.

On January 23, President Donald Trump signed an executive order banning the establishment, issuance, or use of CBDCs, citing threats to financial stability, privacy, and sovereignty.

Blockchain advisor Anndy Lian described the ban as a “game changer” for the cryptocurrency industry in the US.

In July, Trump signed the GENIUS Act, establishing the first comprehensive federal framework in the US for dollar-backed stablecoins with mandatory anti-money laundering compliance.

Critics warn that the digital yuan could increase government financial control. “The Chinese government wants more control over payments,” said Alex Gladstein, Strategy Director of the Human Rights Foundation, to MIT Technology Review.