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China’s Digital Yuan to Offer Interest Payments in Major Policy Shift

China’s Digital Yuan to Offer Interest Payments in Major Policy Shift

Author:

Global Cryptocurrency

Published:

2025-12-29 07:37:02

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BTCCSquare news:

China's central bank will allow commercial banks to pay interest on digital yuan holdings starting January 2026, marking a strategic evolution from cash-like functionality to deposit currency status. The MOVE aims to accelerate adoption of the state-backed digital currency, which has already processed $2.38 trillion across 3.48 billion transactions as of November 2025.

Deputy Governor Lu Lei framed the policy shift as creating parity with traditional deposits, offering both security and yield to users. This development culminates nearly a decade of pilot programs, positioning the digital yuan as a competitive alternative within China's financial ecosystem.

By:

China’s Digital Yuan Evolves into Interest-Bearing ’Digital Deposits’

|Square

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