China unveils new action plan for digital yuan management

Key Takeaways

• The PBOC has issued an Action Plan to strengthen governance and infrastructure for the digital yuan.
• The new framework and mechanism for digital yuan management will be effective from January 1.

China’s central bank, the People’s Bank of China (PBOC), has released an action plan for the digital yuan, setting January 1, 2026, as the start date for a revamped governance structure, operational model, and supporting ecosystem, according to local media.

The digital yuan is China’s central bank digital currency, built for both retail and institutional payments. By November 2025, it had handled roughly 3.5 billion transactions, supported by active cross-border use through mBridge, a multi-CBDC platform enabling real-time, peer-to-peer international settlements using distributed ledger technology.

Lu Lei, Deputy Governor of the PBOC, said in a statement that the plan formally transitions the digital RMB from digital cash to digital deposit money, integrating it deeper into the financial system while keeping central-bank supervision and bank-level accountability.

The action plan is set to revise the measurement framework by including digital RMB balances in deposit reserves, imposing full-margin requirements on non-bank payment firms, and classifying wallets by liquidity. This codifies digital RMB as a commercial bank liability, completing the move toward “Digital RMB 2.0.”

The system architecture will combine accounts, token strings, and smart contracts, upgrading wallets to digital accounts, enhancing issuance and settlement automation, and strengthening the smart contract platform and open-source ecosystem.

The PBOC will establish a Digital RMB Management Committee and operate dual centers for domestic and cross-border systems, emphasizing security, continuity, and coordinated oversight as priority goals.