China's central bank will allow commercial banks to pay interest on digital yuan deposits starting January 1. According to Lu Lei, Deputy Governor of the Bank of China, this measure aims to boost the use of digital currency and achieve parity with traditional bank deposits. Under the new rule, banking institutions will calculate and pay interest on balances in actual digital wallets and will also be able to manage the assets and liabilities of these balances, equating the protection of such deposits with that of regular ones.
What will change for the digital yuan from January 1?
The new regulation formally brings the digital yuan closer to the role of a bank deposit, giving digital wallet holders the opportunity to receive interest payments. This change affects the procedure for interest accrual, balance management, and the level of protection for digital deposits.
- Introduction of interest on digital yuan deposits.
- Parity with traditional bank deposits in terms of protection and accounting.
- The goal is to encourage the use of the digital yuan as both a payment and savings instrument.
What incentives are offered to use the digital yuan?
Banks will have the right to pay interest on clients' digital wallet balances, creating a direct economic incentive to hold funds in digital currency. At the same time, institutions can include digital deposits in managing their assets and liabilities, and insurance and protection mechanisms for such deposits will be standardized on par with regular deposits.
- Banks will pay interest on digital wallet balances.
- Ability to account for digital deposits in banks' asset and liability management.
- Protection of digital deposits equivalent to that of regular deposits.
Challenges in implementing the digital yuan
Despite the package of measures, the digital yuan faces serious competition from already established payment solutions in the Chinese market. Additionally, the country's low deposit rates—around 0.05%—reduce the economic attractiveness of switching from traditional deposits. Equally important is convincing the broader public of the advantages of digital currency and ensuring ease of use.
- Competition with existing payment systems and user habits.
- Low interest rates may limit the effect of introducing interest on digital deposits.
- The need to convince the population of the practical benefits of the digital yuan.
Digital yuan usage statistics
Since November 2025, the digital yuan has processed over 3.48 billion transactions, with a total turnover of nearly 17 trillion yuan. These figures demonstrate the existing level of digital currency usage, although its role in savings and payments will be further adjusted by the new interest payment practice.
Why this matters
For market participants and digital asset holders, the introduction of interest changes economic incentives: the digital yuan ceases to be just a payment tool and gains a savings function comparable to deposits. This may influence preferences among some users within China but does not alter the technical conditions of mining or operations with equipment outside the banking system.
If you follow changes in China's financial policy, it is useful to view these steps in the context of demand and interest in digital currencies; see also materials on cryptocurrency investments, which discuss Chinese investors' approaches to digital assets. The scale and direction of the impact primarily depend on the behavior of banks and users themselves.
What to do?
If you mine in Russia and manage from one to a thousand devices, no direct technical response to this Chinese decision is required, as it concerns banking products and internal payment mechanisms in China. Nevertheless, it is useful to systematically monitor news about regulation and capital flows to understand possible changes in global cryptocurrency demand.
- Follow news and official announcements to timely account for changes in demand and infrastructure settings.
- Assess whether changes in your revenue storage strategy are needed: dividing income between operational funds and savings can help manage risks.
- If necessary, consult tax and legal specialists regarding fund withdrawals and reporting if you work with foreign platforms.
Additional materials on related topics will help better understand the consequences of digital currency development and their place in global finance; in particular, pay attention to the discussion of bitcoin's role in the global economy in the article Bitcoin as a Global Reserve, which explores alternative approaches to value storage.