China adds eight banks to digital yuan as operators reach 30

The People's Bank of China added eight commercial banks to its digital yuan operating network on Aug. 17, taking the number of authorized e-CNY service operators to 30 as the central bank widens access to its state-backed digital currency.

According to the PBOC statement, Ping An Bank, Hengfeng Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha and Guangxi Beibu Gulf Bank were approved as banking institutions permitted to operate digital yuan services. All eight have been connected to the central bank-side digital renminbi system, with customer-facing operations to begin after each institution completes its remaining business and technical preparations.

The expansion follows an April 2 round that added 12 institutions, including China CITIC Bank, China Everbright Bank, Hua Xia Bank and China Minsheng Bank, taking the operator count to 22. The August additions extend participation to national joint-stock banks and several city and regional commercial banks, breaking a pattern dominated by large state-owned lenders.

The PBOC tied the latest expansion to China's 15th Five-Year Plan for 2026-2030, which calls for steady development of the digital renminbi. The central bank said the additional operators are intended to improve access to e-CNY services and respond to demand for payment options that are secure, convenient and efficient.

Interest-bearing wallets reshape how e-CNY balances work

The operator expansion follows a structural change to how digital yuan balances are treated within China's banking system. Beginning Jan. 1, 2026, banks were allowed to pay interest on verified digital yuan wallets after the PBOC changed the framework governing e-CNY balances.

Verified digital yuan balances became eligible for interest under the same self-regulatory arrangements used to determine rates on conventional deposits, and received protection under China's national deposit insurance system. Before the change, the e-CNY had primarily operated as a digital form of cash. Under the revised structure, commercial banks can manage eligible digital yuan balances within their asset-liability operations, while non-bank payment firms must keep customer reserve funds in digital yuan at a 100 percent reserve ratio.

Official figures cited when the changes were announced showed the digital yuan had processed 3.48 billion transactions by November 2025. Chinese authorities have continued testing new uses for the currency after years of domestic pilot programs involving retail payments, public services and commercial transactions.

Cross-border trials extend from Singapore to Hong Kong

Alongside domestic banking changes, Chinese institutions have continued testing digital yuan infrastructure for cross-border payments. In July, the Shanghai branch of the Industrial and Commercial Bank of China and ICBC Singapore completed the first China-Singapore payment through the upgraded Digital Currency Express comprehensive settlement platform, known as CBETS.

The transaction covered nearly 10 million yuan in import shipping costs for a subsidiary of a centrally owned enterprise. Funds were settled entirely in digital renminbi and reached the recipient in Singapore the same day, according to Mobile Payment Network. CBETS was developed by the International Operation Center for the digital renminbi under the guidance of the PBOC's Digital Currency Research Institute, combining earlier cross-border payment, blockchain service and digital asset systems while supporting ISO 20022 messaging standards.

ICBC has also established digital yuan payment and collection links involving Singapore and Laos through the system, while its Inner Mongolia branch completed a 220 million yuan transfer to Hong Kong through the multilateral CBDC bridge. The upgraded international digital yuan platform had signed direct participant agreements with an initial group of 26 financial institutions by June, including ICBC Asia, Bank of China Hong Kong, Standard Chartered China and ICBC branches in Singapore, Thailand, Laos, Macau and Qatar.

Regional authorities have also included e-CNY expansion in financial policy proposals for the 2026-2030 period. Earlier in August, Guangdong published a draft development plan proposing more cross-border e-CNY trials within the China (Guangdong) Pilot Free Trade Zone, with public consultation open until Sept. 5.

The addition of more commercial banks gives the PBOC another route to extend e-CNY services through institutions that already maintain customer relationships and payment infrastructure across different parts of China. The entry of city and regional banks means digital yuan promotion will be more closely aligned with local economies, particularly in consumer subsidy distribution, public utility payments and small-business settlement — areas where local lenders often have greater reach than national banks. As the operator network grows and cross-border infrastructure matures, the digital yuan's path to broader adoption will depend on whether banks, merchants and consumers form a sustainable usage loop.

This article is for informational purposes only and does not constitute investment advice.