Bank of China to Offer Interest on Digital Renminbi Wallets

The Bank of China will begin paying interest on digital renminbi wallets from January 1, 2026, as announced on December 31, 2025, following a directive by the People’s Bank of China.

This initiative elevates e-CNY to a digital deposit status, boosting its adoption and integrating it into traditional banking systems with interest and insurance features.

Bank of China to Pay Interest on e-CNY Wallets

The People’s Bank of China has directed the Bank of China to offer interest on e-CNY wallet balances, effectively transforming the digital renminbi into a digital deposit. This shift makes the e-CNY an asset integrated into standard banking, marking an end to its previous cash-like status and introducing interest payments from January 2026. According to a Coindesk report, “Starting January 1, 2026, the Bank of China will pay interest on real-name e-CNY wallets at current deposit rates, aligning the rules with those for ordinary deposits.”

This integration into the existing deposit framework marks a substantial policy evolution in China’s CBDC strategy. It ensures that digital renminbi balances are not only interest-bearing but also protected under traditional deposit insurance schemes, as detailed on CoinMarketCap. The policy aligns with long-standing efforts to embed digital currency into the standard financial system. The notable tie with commercial banks further supports these wallets as legitimate financial accounts under PBOC oversight.

Community and government reactions underscore China’s focused advancement in digital currency to counteract competitors. Lu Lei, PBOC Deputy Governor, emphasizes that this policy follows significant testing, with over 3.48 billion transactions processed to date. The market response appears to be cautiously observant amid ongoing global CBDC developments. Lu Lei stated, “The updated framework for e-CNY wallet balances marks a significant advancement in our ten-year journey of testing and improving our central bank digital currency.”

Extensive Trials Set Stage for Interest-Bearing Digital Renminbi

Did you know? Between 2019 and 2025, China conducted extensive trials for the digital renminbi, involving cross-border pilots with multiple countries, leading to this interest-bearing expansion.

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The Coincu research team suggests this policy will fortify PBOC’s regulatory hold while increasing e-CNY’s appeal against private digital wallets. Positioned to compete with dominant players like Alipay, this shift could foster broader digital yuan usage domestically and internationally. The policy aligns with long-standing efforts to embed digital currency into the standard financial system.