Central bank outlines next phase of e-CNY operations, including interest payments and global ambitions
China is set to introduce a new “action plan” for strengthening the management and operation of its digital currency from January 1, according to a senior official of the country’s central bank.
Lu Lei, Deputy Governor of the People’s Bank of China (PBoC), said the initiative marks a key step in advancing the digital yuan as a modern payment and circulation tool within China’s financial system.
Writing in Financial News, a publication affiliated with the central bank, Lu described the digital yuan as a state-issued digital payment instrument designed to operate fully under the formal financial framework.
As part of the next phase, Lu said authorities will introduce a “new-generation” operational structure for the digital yuan beginning January 1. This will include a comprehensive measurement framework, management structure, operating mechanism and supporting ecosystem.
One of the major changes under the action plan is a proposal for commercial banks to pay interest on digital yuan balances, a move aimed at encouraging wider public use of the currency.
The plan also envisions the creation of an international digital yuan operations centre in Shanghai, strengthening the city’s role as a global financial hub and supporting cross-border digital currency initiatives.
China’s push comes as central banks worldwide accelerate efforts to digitalise national currencies, driven by the rapid growth of online payments during the COVID-19 pandemic and the rising influence of cryptocurrencies such as bitcoin.
The PBoC has been developing its digital currency project since 2014, with pilot programmes for the e-CNY already rolled out in several cities and regions.
While mobile and online payments are already deeply embedded in everyday life across China, the digital yuan would give the central bank — rather than private technology firms, greater oversight, data access and control over payment systems.
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