Catenaa, Saturday, January 03, 2025-China’s central bank has released an action plan to strengthen oversight and infrastructure for the digital yuan, with a new framework set to take effect on Jan. 1, 2026, according to state-linked media reports.
The People’s Bank of China said the plan formalizes management and operational rules for its central bank digital currency after nearly a decade of trials. The updated framework clarifies issuance, circulation, and supervision of the digital yuan within the financial system, with technical support led by the central bank.
Senior PBOC officials said the digital yuan is designed to function as a unit of account, store of value, and payment tool, including for cross-border use. The action plan builds on a two-tier operating structure first outlined in 2016, under which the central bank issues the currency while commercial institutions handle distribution and user services.
Under the revised rules, commercial banks that offer digital yuan wallets will pay interest to customers based on wallet balances. Banks will be allowed to manage assets and liabilities linked to those balances independently, within regulatory limits.
At the governance level, the PBOC plans to establish a Digital RMB Management Committee to coordinate policy execution and supervision across business lines.
The move follows the creation of a digital yuan operations center in Shanghai earlier this year, aimed at supporting cross-border payments, blockchain services, and related platforms.
The plan comes as China seeks to regain momentum after setbacks in adoption. User uptake has lagged since the digital yuan’s initial rollout in 2019, in part due to competition from established mobile payment systems.
Internationally, progress slowed after the Bank for International Settlements withdrew from the mBridge cross-border project over policy concerns.
