China's e-CNY now offers interest, challenging US stablecoin regulations.China's e-CNY now offers interest, challenging US stablecoin regulations.

China’s Digital Yuan Becomes Interest-Bearing

What to Know:
  • China’s e-CNY becomes interest-bearing; PBOC leads the shift.
  • The digital yuan now aligns with bank deposits.
  • Challenges US stablecoins amid increased regulatory scrutiny.

China’s central bank, alongside major banks, has made the digital yuan interest-bearing, intensifying pressure on U.S. stablecoin regulations and reshaping the cryptocurrency landscape.

This strategic shift offers a state-backed alternative to private stablecoins, challenging global regulatory frameworks and potentially accelerating stricter controls on cryptocurrencies in the U.S. and Europe.

China’s central bank has made the digital yuan interest-bearing, increasing pressure on US stablecoin regulations.

This shift supports a regulated digital economy while challenging private stablecoin models globally.

e-CNY Transitions to Interest-Bearing Digital Deposits

The People’s Bank of China has introduced interest-bearing balances for the digital yuan, aligning with bank deposits. This move follows initial pilots from 2019.

Key figures like PBOC Vice Governor Lu Lei emphasize moving e-CNY from “digital cash” to “digital deposit money”, reinforcing regulatory compliance. As Lu Lei stated, “The shift from digital cash to digital deposit money emphasizes that e-CNY wallet balances will be treated as bank deposits, subject to reserve requirements and deposit insurance.”

New Regulatory Pressure on U.S. Stablecoins

The integration puts regulatory pressure on USD stablecoins, seen as risk vectors. China’s tighter oversight could push other regions towards similar regulations. Market observers view the e-CNY as a state-backed alternative to private cryptocurrencies, promoting monetary stability amid crypto’s perceived risks.

Global Impact: Potential for Toughened Regulations

The prohibition on private crypto activities starting in 2021 sets a backdrop for the current stricter measures on stablecoins and RWA tokens. Experts anticipate the e-CNY’s global impact could prompt toughened regulations on stablecoins, aligning with trends in US and EU financial governance.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
Market Opportunity
Nowchain Logo
Nowchain Price(NOW)
$0.00093
$0.00093$0.00093
0.00%
USD
Nowchain (NOW) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Zero Knowledge Proof Becomes the Go-To 1000x Crypto Play for Investors While SUI & Dogecoin Struggle to Break Out

Zero Knowledge Proof Becomes the Go-To 1000x Crypto Play for Investors While SUI & Dogecoin Struggle to Break Out

Discover how analysts point to 1000x upside for Zero Knowledge Proof’s live daily presale auctions, while the Dogecoin price today and the SUI price struggle near
Share
CoinLive2026/01/13 13:00
Federal Reserve Chairman Powell Faces Criminal Investigation Threat, Retail Investors Rally Behind “Daddy Powell”

Federal Reserve Chairman Powell Faces Criminal Investigation Threat, Retail Investors Rally Behind “Daddy Powell”

Federal Reserve Chairman Jerome Powell is facing a criminal investigation threat from the White House after publicly defending the independence of the central bank. This move has unexpectedly garnered widespread support from retail investors who have dubbed him the “hero of America” and the “best chairman ever,” affectionately referring to him as “Daddy Powell.” Since Powell took office in 2018, the S&P 500 index has surged by 163%, with his decisive interest rate cuts during the pandemic winning him the admiration of young investors and solidifying his status among retail traders.
Share
MEXC NEWS2026/01/13 15:31
Headwind Helps Best Wallet Token

Headwind Helps Best Wallet Token

The post Headwind Helps Best Wallet Token appeared on BitcoinEthereumNews.com. Google has announced the launch of a new open-source protocol called Agent Payments Protocol (AP2) in partnership with Coinbase, the Ethereum Foundation, and 60 other organizations. This allows AI agents to make payments on behalf of users using various methods such as real-time bank transfers, credit and debit cards, and, most importantly, stablecoins. Let’s explore in detail what this could mean for the broader cryptocurrency markets, and also highlight a presale crypto (Best Wallet Token) that could explode as a result of this development. Google’s Push for Stablecoins Agent Payments Protocol (AP2) uses digital contracts known as ‘Intent Mandates’ and ‘Verifiable Credentials’ to ensure that AI agents undertake only those payments authorized by the user. Mandates, by the way, are cryptographically signed, tamper-proof digital contracts that act as verifiable proof of a user’s instruction. For example, let’s say you instruct an AI agent to never spend more than $200 in a single transaction. This instruction is written into an Intent Mandate, which serves as a digital contract. Now, whenever the AI agent tries to make a payment, it must present this mandate as proof of authorization, which will then be verified via the AP2 protocol. Alongside this, Google has also launched the A2A x402 extension to accelerate support for the Web3 ecosystem. This production-ready solution enables agent-based crypto payments and will help reshape the growth of cryptocurrency integration within the AP2 protocol. Google’s inclusion of stablecoins in AP2 is a massive vote of confidence in dollar-pegged cryptocurrencies and a huge step toward making them a mainstream payment option. This widens stablecoin usage beyond trading and speculation, positioning them at the center of the consumption economy. The recent enactment of the GENIUS Act in the U.S. gives stablecoins more structure and legal support. Imagine paying for things like data crawls, per-task…
Share
BitcoinEthereumNews2025/09/18 01:27