China expands digital yuan network to 30 authorized banks

China has expanded its Digital yuan network to 30 authorized banking operators after the People’s Bank of China approved eight more commercial lenders, accelerating the rollout of its state-backed digital currency as Beijing pushes deeper domestic and cross-border adoption.

The latest additions take the number of authorized e-CNY operating institutions from 22 to 30, marking another major expansion of the digital yuan network this year. The newly approved banks are Ping An Bank, Hengfeng Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha and Guangxi Beibu Gulf Bank.

The PBOC said the institutions have been connected to the central bank-side digital renminbi system. They will begin customer-facing operations after completing the remaining business and technical preparations.

The move is significant for the cryptocurrency sector even though the digital yuan is not a cryptocurrency. It is a central bank digital currency, issued and managed within China’s regulated financial system. Unlike decentralized assets such as Bitcoin, the e-CNY operates under a centralized, two-tier model in which the PBOC controls the underlying system while commercial institutions provide services to users.

Eight banks join China’s expanding e-CNY infrastructure

The latest approval represents the second major enlargement of the digital yuan network in 2026.

On April 2, the PBOC approved 12 additional institutions, including China CITIC Bank, China Everbright Bank, Hua Xia Bank, China Minsheng Bank, China Guangfa Bank, Shanghai Pudong Development Bank, China Zheshang Bank, Bank of Ningbo, Bank of Jiangsu, Bank of Beijing, Bank of Nanjing and Bank of Suzhou.

That earlier expansion lifted the number of operators to 22. Four months later, another eight banks have pushed the total to 30.

The PBOC said the expansion will proceed under market-oriented and rule-based principles, with the aim of maintaining an open and fair competitive environment for digital renminbi services.

The strategy also fits into China’s broader 15th Five-Year Plan for 2026–2030, which calls for the steady development of the e-CNY.

China’s model relies on a two-tier structure. The central bank provides the underlying infrastructure and regulatory framework, while authorized commercial institutions distribute services and interact with customers.

That structure means expanding the digital yuan network does more than add names to an approved list. It gives the e-CNY access to established banking relationships, payment infrastructure and regional customer bases.

Interest-bearing wallets give digital yuan a new role

The banking expansion arrives after one of the biggest changes to the e-CNY framework since its development began.

From Jan. 1, 2026, eligible verified digital yuan wallet balances became capable of earning interest under the revised framework. The change moves the instrument closer to deposit-like money rather than functioning solely as a digital equivalent of cash.

PBOC Deputy Governor Lu Lei described the shift as a move from the “digital cash era” to the “digital deposit money” era.

The revised framework allows participating banks to incorporate eligible digital yuan balances into their asset-liability operations. Digital yuan balances held through the banking system also receive protection under China’s deposit insurance framework, while non-bank payment institutions face a 100% reserve requirement for relevant customer funds.

The change could make participation more commercially attractive for banks, addressing one of the structural challenges of distributing a central bank digital currency through commercial institutions.

Official figures cited in connection with the new framework showed that e-CNY transactions had reached 3.48 billion by the end of November 2025, with cumulative transaction value of 16.7 trillion yuan. The official app had also opened about 230 million personal wallets and 18.84 million corporate wallets.

With more banks now joining the digital yuan network, the PBOC has additional channels through which those balances and payment services can reach consumers and businesses.

Cross-border payments become a bigger priority

China’s digital currency strategy is no longer limited to domestic payments.

In July, the Shanghai branch of Industrial and Commercial Bank of China and ICBC Singapore completed a cross-border payment using the upgraded Digital Currency Express comprehensive settlement platform, known as CBETS.

The transaction involved almost 10 million yuan in import shipping costs, with the payment settled entirely in digital renminbi and delivered to the Singapore recipient on the same day.

The transaction provides a practical example of how Beijing is attempting to connect its domestic digital currency infrastructure with international trade settlement.

The broader international infrastructure is also being developed alongside China’s existing cross-border CBDC initiatives. Lu has said the e-CNY is intended to retain a role in cross-border payments as its architecture evolves.

That makes the expansion of the digital yuan network strategically important beyond China’s domestic banking sector. More authorized operators could potentially increase the number of institutions capable of connecting businesses and customers to the currency’s broader payment ecosystem.

Guangdong adds another layer to China’s digital yuan push

Regional governments are also looking to expand cross-border applications.

A draft development plan released by Guangdong earlier this month proposed additional e-CNY trials within the China (Guangdong) Pilot Free Trade Zone. The proposal includes larger cross-border digital yuan payment programs alongside initiatives covering offshore finance, fintech and other financial services.

The consultation is scheduled to remain open until Sept. 5, giving businesses and financial institutions an opportunity to comment on the proposed measures.

Taken together, the new bank approvals, interest-bearing wallets and cross-border experiments show that China’s digital currency project is moving into a more mature phase.

The expansion of the digital yuan network to 30 operators gives the PBOC a broader commercial distribution base, while the shift toward interest-bearing balances gives participating banks stronger incentives to support the system.

For China, the next challenge is turning infrastructure into sustained usage. The country already has highly developed private digital payment platforms, meaning the e-CNY must offer compelling advantages to consumers, businesses and financial institutions.

The rapid expansion of the digital yuan network suggests Beijing is betting that deeper bank participation and international settlement capabilities can help transform the e-CNY from a long-running pilot into a more integrated component of China’s financial infrastructure.