China to Introduce Interest on Digital Yuan from 2025
China's central bank will offer interest on digital yuan wallets starting January 1, 2025, marking the first interest-bearing central bank digital currency globally. This move aims to boost adoption and usage of the e-CNY.
Insights:
In a groundbreaking move, the People's Bank of China has announced that the digital yuan, known as e-CNY, will start earning interest from January 1, 2025. This initiative positions the e-CNY as the world's first interest-bearing central bank digital currency, according to China Central Television. The interest will be based on demand deposit rates, transforming the e-CNY from a digital cash system into an interest-bearing digital deposit system, a significant shift aimed at encouraging broader adoption.
