China’s Digital Yuan Enters New Phase with Interest-Bearing Accounts
China's central bank has pivoted its digital currency strategy, authorizing commercial banks to pay interest on digital yuan holdings for the first time. This marks a strategic shift toward aligning the state-backed currency with conventional banking products.
The MOVE signals Beijing's push to accelerate adoption of its CBDC by offering yield-bearing accounts—a feature previously exclusive to traditional deposits. Analysts note this blurs the line between sovereign digital currencies and commercial bank money.