On December 30, the People’s Bank of China officially released the Digital Yuan Action Plan, specifying that a new-generation digital yuan management system will be implemented starting from January 1, 2026. The most notable part is that the balance in digital yuan wallets will accrue interest at the current deposit rate. This initiative marks the official transition of the digital yuan from “digital cash” to the era of “digital deposit currency”, making China the world’s first economy to offer interest on central bank digital currency.

The newly released Action Plan covers four core modules: measurement framework, management system, operation mechanism, and ecological system, aiming to further improve the circulation function and value attribute of the digital yuan. Industry analysis points out that interest-bearing digital yuan will significantly enhance its attractiveness to the public and institutions, promote the wide application of digital currency in daily payment, financial investment and other fields, and at the same time provide a new paradigm for the development of central bank digital currencies worldwide.

Market participants predict that with the implementation of the interest-bearing mechanism, the transaction activity and holding scale of the digital yuan are expected to increase significantly, which may have a certain diversion effect on the current deposit business of traditional banks. However, relevant persons in charge of the central bank stated that precise regulation will be adopted to ensure the stability of the financial system and promote the coordinated development of the digital yuan and traditional financial formats. At present, many commercial banks have begun to prepare for system upgrades and business promotion related to interest-bearing digital yuan.