The People's Bank of China has tripled its digital yuan (e-CNY) network in 2026, adding eight new commercial banks in August to bring the total number of operators to 30. This expansion follows a major January 1, 2026 reform that turned e-CNY wallet holdings into interest-bearing deposit liabilities. While China has processed 16.7 trillion yuan in transactions since launching pilots in 2019, the central bank continues to face slow retail adoption due to the dominance of Alipay and WeChat Pay.
Digital yuan network expansion
- ▪The People's Bank of China added eight commercial banks to the digital yuan network on August 17, 2026, bringing the total number of operators to 30.
- ▪The People's Bank of China added 12 banks to the digital yuan network in a previous expansion round in early 2026, increasing the total to 22 before the August 2026 expansion.
- ▪The eight lenders added to the digital yuan network on August 17, 2026, include Ping An Bank, Bank of Shanghai, Bank of Hangzhou, Hengfeng Bank, Huishang Bank, Bank of Changsha, and Guangxi Beibu Gulf Bank.
- ▪The digital yuan network tripled its participant roster in 2026, growing from 10 banks at the start of the year to 30 lenders following two rounds of expansion.
Two-tier CBDC operator framework
- ▪Commercial banks in the digital yuan network are responsible for opening wallets, processing payments, customer identity verification, anti-money-laundering checks, and transaction monitoring.
- ▪Under China's two-tier digital currency system, the People's Bank of China manages the core system while authorized commercial banks operate the customer-facing layer.
Digital yuan deposit liability reform
- ▪The January 1, 2026 framework requires commercial banks to pay interest to users on digital yuan balances held in commercial wallets.
- ▪Under a regulatory framework effective January 1, 2026, digital yuan held in commercial bank wallets became deposit liabilities covered by deposit insurance.
CBDC transaction volume growth
- ▪China began piloting the digital yuan in 2019, expanding its use from retail payments to government services, corporate settlements, and cross-border payments.
- ▪China processed 3.48 billion digital yuan transactions worth 16.7 trillion yuan, or approximately $2.5 trillion, through November 2025.
Alipay WeChat Pay competition
- ▪The People's Bank of China faces the ongoing challenge of encouraging wider retail use of the digital yuan amid dominant competition from Alipay and WeChat Pay.
- ▪Retail adoption of the digital yuan has been slow because Chinese consumers are accustomed to using established private payment platforms Alipay and WeChat Pay.
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