TLDR
- The new digital RMB framework and ecosystem will officially begin operation on January 1, 2026.
- The digital RMB will shift from a cash-type system to a deposit-based model within the financial system.
- The central bank will lead, while commercial banks and non-bank institutions manage wallets and services.
- Digital wallets will support programmable payments through integrated smart contract technology.
- By November 2025, the digital RMB recorded 3.48 billion transactions totaling 16.7 trillion yuan.
The People’s Bank of China will officially implement a new digital RMB framework and operating system on January 1, 2026, as stated in the newly released “Action Plan.” This move follows ten years of research and pilot programs and aims to improve the management and service systems of the digital RMB, also known as e-CNY, by upgrading its operating mechanism, infrastructure, and technical framework.
Digital RMB to Transition from Cash-Type to Deposit-Based System
The Action Plan confirms that the digital RMB will transition from a digital cash system to a deposit-based digital money model. This change aligns with the evolving demands of China’s real economy and its digital financial ecosystem. The plan states, “The digital yuan will function as a modern digital payment tool issued and circulated within the financial system.”
This model allows for both account-based transactions and compatibility with distributed ledger technologies like blockchain. The digital RMB will now possess attributes of commercial bank liabilities and maintain its functions as a payment tool, value store, and settlement unit. The upgrade aims to support cross-border payments and integrate with international standards.
The People’s Bank of China will oversee the top-level design, technical standards, and infrastructure development. Commercial banks will open wallets, manage funds, provide services, and ensure compliance, while non-bank institutions will operate under strict digital RMB margin rules.
Strengthening Two-Tier Operating Model and Risk Controls
China’s digital RMB will continue using the two-tier model between the central bank and commercial banks. This structure has been tested since 2016 and is now globally recognized as a digital currency standard. Commercial banks are responsible for wallet issuance, transaction security, and compliance, including anti-money laundering and anti-tax evasion obligations.
Additionally, they will pay interest on wallet balances in line with existing deposit regulations. The system also mandates that wallet balances at commercial banks are counted as reserve deposits, while non-bank operators must maintain a 100% digital RMB margin.
This ensures consistency in liquidity classification and supports monetary control. The Action Plan also outlines risk controls to limit financial disintermediation and shadow banking. All institutions will follow a regulated structure under the central bank’s monitoring and policy framework.
Enhancing Blockchain Integration and Cross-Border Use
The hybrid model will combine the advantages of account-based management with blockchain capabilities. It supports various financial scenarios, including supply chain finance, carbon trading, and social welfare. Digital wallets will include smart contract features to allow programmable payments and automation in financial services and public applications.
The People’s Bank of China will expand smart contract infrastructure to enable open-source integration. The digital RMB has processed over 3.48 billion transactions totaling 16.7 trillion yuan by November 2025. Over 230 million personal wallets and 18.84 million corporate wallets have been activated through the official app.
The mBridge project also processed 4,047 cross-border transactions worth RMB 387.2 billion. Digital RMB accounted for over 95.3% of the volume, supporting offshore financial use cases and trade settlement. A new international operations center will be launched in Shanghai to oversee blockchain-based cross-border settlement. It will offer on-chain tools, unified ledgers, and asset registration platforms to support 24/7 digital finance operations.
