Digital Yuan 2.0: China Starts Offering Interest from January 1, 2026
The People's Bank of China (PBOC) officially announced a new framework that allows commercial banks to pay interest on Digital Yuan (e-CNY) wallet balances starting January 1, 2026. This policy aims to encourage mass adoption and compete with the dominance of private payment platforms like Alipay and WeChat Pay.
Key Points of e-CNY Evolution:
From Cash to Deposit: e-CNY is now categorized as Digital Deposit Money (M1), no longer just a cash instrument (M0). This makes it the world's first CBDC to provide widespread yield.
Protection Similar to Savings: e-CNY balances will be protected by national deposit insurance, providing the same level of security as traditional bank accounts.
Incentive for Adoption: With the provision of interest, users and corporations have a stronger financial reason to hold funds in digital yuan rather than just using it for small transactions.
Cross-Border Efficiency: The status as "deposit money" will facilitate the use of e-CNY in international transactions (through the mBridge project) without the need for additional conversion costs from cash to deposits.#BTC90kChristmas #StrategyBTCPurchase #FOMCWatch #BTCVSGOLD #CPIWatch $BTC
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