China Accelerates CBDC Adoption With Jan 1 Action Plan
China will roll out a comprehensive “action plan” for the digital yuan on January 1, marking a major push to strengthen the management, operations, and future use of its central bank digital currency (CBDC), according to Lu Lei, Deputy Governor of the People’s Bank of China (PBoC).
In an article published in Financial News, Lu said the digital yuan (e-CNY) is expected to evolve into a modern digital payment and circulation tool issued directly within the country’s financial system. As part of the next development stage, the PBoC will introduce a “new generation” digital yuan framework, which will include a standardized measurement system, upgraded management structure, operational mechanisms, and a supporting ecosystem to advance adoption.
A key feature of the new plan will require banks to pay interest on customer-held digital yuan balances, aiming to boost user engagement and encourage everyday use of the currency. The initiative also proposes the creation of an international digital yuan operations center in Shanghai, reinforcing the financial hub’s role in global CBDC development.
The move comes as central banks worldwide accelerate efforts to digitalize national currencies, driven by growing online payment demand and the rapid rise of cryptocurrencies such as Bitcoin. China has been developing its digital yuan since 2014, and nationwide pilot programs have already allowed consumers to spend e-CNY in retail, public services, and transportation.
While mobile payment platforms dominate daily transactions in China, the digital yuan offers the central bank greater control and access to payment data, reducing reliance on private-sector tech giants and strengthening monetary oversight. With the new action plan, China is signaling its intent to position the digital yuan as a core component of its future financial infrastructure.
