China Expands Digital Yuan Network With 12 New Banks

TLDR

• China authorized 12 new banks to operate within the Digital Yuan network.
• The People’s Bank of China expanded the total number of approved operators to 22 institutions.
• The central bank reported 16.7 trillion yuan in cumulative Digital Yuan transactions through late 2025.
• More than 230 million personal wallets and 19 million institutional wallets have been opened nationwide.
• The mBridge platform processed over $55 billion in cross-border settlements, with 95% completed in Digital Yuan.

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China expanded its central bank digital currency network after authorizing 12 new banks to operate the Digital Yuan. The People’s Bank of China confirmed the additions and outlined updated transaction data. The move widens access while regulators adjust the currency’s classification and interest framework.

Digital Yuan Network Expands to 22 Operators

The People’s Bank of China approved seven national joint-stock banks to support Digital Yuan services. These banks include China CITIC Bank, China Everbright Bank, Shanghai Pudong Development Bank, Huaxia Bank, China Minsheng Bank, China Guangfa Bank, and Zheshang Bank. The central bank also added five city commercial banks, with Bank of Ningbo leading regional participation.

Four regional banks continue technical onboarding and will complete integration in phases. These institutions join the original ten operators, which included the six largest state-owned banks. The initial group also included two joint-stock lenders and two internet banks, MYbank and WeBank.

Until this update, major state-controlled banks handled most wallet and payment services. They managed wallet creation, exchange services, and transaction processing. The April decision ends that concentrated structure and broadens institutional access.

The central bank reported 16.7 trillion yuan in cumulative Digital Yuan transactions through late 2025. Authorities recorded 3.48 billion individual transactions across pilot regions. Users opened more than 230 million personal wallets and 19 million institutional wallets nationwide.

On cross-border settlement, the mBridge platform processed over $55 billion by January. Officials stated that 95% of that volume settled in Digital Yuan. Participating central banks continue to test real-time international settlement functions.

Despite expansion, the Digital Yuan represents about 0.16% of China’s total M0 supply. This share shows limited circulation compared to cash in the broader system. Authorities continue structured rollout plans across retail and institutional sectors.

Regulatory Shift and Cross-Border Push

China reclassified the Digital Yuan from M0 to M1 on January 1, 2026. The change allows verified wallets to earn standard demand deposit interest. Banks now apply an annual rate of about 0.05% to eligible balances.

Commercial banks can now count Digital Yuan holdings within their deposit base. This adjustment enables lenders to use those balances for lending activities. Analysts at the Peterson Institute for International Economics said the shift changes incentives for banks.

Shanghai Pudong Development Bank began recruiting technology staff in Chengdu. Bank of Ningbo issued tenders for specialized payment processing systems. These actions reflect operational expansion across newly authorized institutions.

Alipay and WeChat Pay integrated Digital Yuan modules into their applications. Users can complete payments in Digital Yuan within those existing platforms. The People’s Bank of China stated it views the currency as a sovereign monetary layer.

The Digital Yuan charges no transfer or withdrawal fees for users. It supports dual offline payments using NFC technology without internet access. The system applies tiered anonymity based on wallet verification levels.

Entry-level wallets require only a phone number and cap payments at 2,000 yuan. Higher-tier wallets require full identity checks and allow unlimited balances. Regulators maintain traceability at the institutional level for compliance oversight.

Huaxia Bank and Shanghai Pudong Development Bank target mBridge integration for cross-border trade. The system enables direct settlement outside the SWIFT network. Officials confirmed that authorities continue scaling infrastructure into 2026.

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