Key Highlights
- The People’s Bank of China authorized 12 additional financial institutions to join the e-CNY ecosystem.
- Total approved operators now stand at 22, doubling from the original ten institutions.
- Cumulative transaction volume reached 16.7 trillion yuan by the end of 2025.
- Over 230 million individual wallets and 19 million business wallets are currently active.
- The mBridge cross-border platform handled more than $55 billion, with Digital Yuan accounting for 95% of settlements.
The People’s Bank of China has significantly broadened its central bank digital currency infrastructure by granting operating licenses to 12 additional financial institutions. The People’s Bank of China released updated figures on transaction volumes and wallet adoption while implementing changes to the currency’s monetary classification system.
Banking Network Doubles With Strategic Additions
Chinese monetary authorities approved seven prominent national joint-stock commercial banks to participate in Digital Yuan distribution. The newly authorized lenders comprise China CITIC Bank, China Everbright Bank, Shanghai Pudong Development Bank, Huaxia Bank, China Minsheng Bank, China Guangfa Bank, and Zheshang Bank. Additionally, five city-level commercial institutions received approval, with Bank of Ningbo representing the regional banking sector.
Four of the newly designated regional lenders remain in technical preparation stages and will launch services gradually. This expansion complements the original ten operators, which featured China’s six dominant state-owned banking giants alongside two joint-stock institutions and a pair of digital-first banks—MYbank and WeBank.
Previously, the dominant state-backed lenders controlled virtually all wallet creation and payment infrastructure. They managed account opening procedures, currency exchange functions, and payment processing operations. The April authorization dismantles this monopolistic framework and distributes operational responsibilities more broadly.
According to central bank data, the Digital Yuan processed a cumulative 16.7 trillion yuan through late 2025. The system facilitated 3.48 billion separate transactions across designated pilot zones. The user base established over 230 million consumer wallets alongside 19 million corporate accounts.
In international settlement operations, the mBridge infrastructure handled transaction volumes exceeding $55 billion by January. Central bank officials noted that Digital Yuan denominated 95% of total settlement activity. Participating monetary authorities from multiple nations continue evaluating real-time cross-border payment capabilities.
Despite network growth, the Digital Yuan constitutes approximately 0.16% of China’s M0 monetary aggregate. This proportion indicates constrained circulation relative to physical currency within the financial system. Officials maintain phased deployment strategies targeting both consumer and enterprise applications.
Classification Update and International Settlement Strategy
Chinese authorities reclassified the Digital Yuan from M0 to M1 status effective January 1, 2026. This modification permits authenticated wallet holders to receive standard demand deposit interest rates. Financial institutions now apply approximately 0.05% annual interest to qualifying account balances.
Banking institutions may now incorporate Digital Yuan holdings within their total deposit calculations. This regulatory adjustment permits lenders to utilize these balances for credit extension activities. Economic researchers at the Peterson Institute for International Economics identified this shift as altering institutional incentive structures.
Shanghai Pudong Development Bank initiated technology personnel recruitment campaigns in Chengdu. Bank of Ningbo published procurement requests for specialized payment infrastructure systems. These developments signal operational preparation among newly designated participants.
Major payment platforms Alipay and WeChat Pay incorporated Digital Yuan functionality into their existing applications. Platform users can execute transactions using the digital currency through familiar interfaces. Central bank leadership characterizes the currency as representing sovereign monetary infrastructure.
The Digital Yuan operates without transaction fees or withdrawal charges for end users. The system supports contactless offline transactions through NFC technology without network connectivity requirements. Privacy protections scale according to wallet verification tiers.
Basic-tier wallets require only mobile phone registration and restrict individual payments to 2,000 yuan. Premium-tier accounts mandate comprehensive identity verification while permitting unrestricted balance holdings. Regulatory authorities preserve institutional-level transaction visibility for anti-money laundering enforcement.
Huaxia Bank alongside Shanghai Pudong Development Bank are pursuing mBridge platform integration for international commerce applications. The framework facilitates direct settlement mechanisms bypassing traditional SWIFT infrastructure. Government officials confirmed continued infrastructure scaling throughout 2026.
