In a major step toward accelerating the development of the digital yuan, the People’s Bank of China (PBoC) has announced that commercial banks will soon be allowed to pay interest on digital yuan (e-CNY) deposits. This initiative aligns with China’s broader vision of strengthening its financial system and promoting digital currency adoption.
Digital Yuan Moves Closer to Traditional Bank Deposits
Starting January 1, as part of the Chinese Communist Party’s 15th Five-Year Plan for Economic and Social Development, the digital yuan will gain features similar to regular bank deposits. The plan emphasizes the “steady development of the digital yuan” as a core national objective.
Lu Lei, Vice Governor of the Bank of China, confirmed that banks will calculate and pay interest on balances held in real-name digital RMB wallets, following existing deposit interest rate regulations. This move positions the digital yuan not just as a payment tool, but also as a savings instrument.
Same Protection as Traditional Deposits
Lei also highlighted that digital yuan balances will be included in banks’ asset-liability management systems, meaning digital currency deposits will enjoy the same protections as traditional bank deposits—a significant confidence booster for users.
Adoption Challenges Remain
Despite these incentives, China’s payment ecosystem is already dominated by popular platforms, making widespread adoption challenging. Moreover, deposit interest rates in China remain extremely low—currently around 0.05%, according to Bloomberg—so the immediate financial incentive may be limited.
Strong Usage Metrics Signal Growth
Even so, adoption continues to grow. Since November 2025, the digital yuan has processed over 3.48 billion transactions, with a total transaction value nearing 17 trillion yuan, underscoring its expanding role in China’s digital economy.
