China Breaks the Orthodoxy of Central Bank Digital Currencies: Starting to Pay Interest on the Digital Yuan...
The Chinese digital yuan entered a new era on January 1, 2026, as wallet balances began accruing interest at deposit rate prices.
This move represents a decisive departure from the prevailing global consensus that central bank digital currencies should remain interest-free. The European Central Bank, the Federal Reserve, and the Bank for International Settlements have long advocated this principle as fundamental to financial stability.
The Orthodox View: Digital Currencies as Digital
View OriginalThe Chinese digital yuan entered a new era on January 1, 2026, as wallet balances began accruing interest at deposit rate prices.
This move represents a decisive departure from the prevailing global consensus that central bank digital currencies should remain interest-free. The European Central Bank, the Federal Reserve, and the Bank for International Settlements have long advocated this principle as fundamental to financial stability.
The Orthodox View: Digital Currencies as Digital
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