# Deposit Insurance Related Articles

China Turns To Interest Rates To Kick-Start Digital Yuan Adoption

China will allow commercial banks to pay interest on digital yuan (e-CNY) wallet balances starting January 1, 2026, shifting the digital currency from a cash-like instrument to a deposit-like asset. The People’s Bank of China (PBOC) introduced the new framework, which brings e-CNY under deposit insurance protection and requires non-bank payment providers to hold full reserves. By November 2025, e-CNY recorded 3.48 billion transactions totaling ¥16.7 trillion ($2.37 trillion). The move may influence where consumers and businesses store funds, as interest-bearing e-CNY becomes more attractive. Banks may face higher operational costs but could benefit from reduced nonbank platform deposits. The policy also strengthens cross-border testing and regulatory oversight.

bitcoinist12/30 20:07