China to Pay Interest on Digital Yuan From 2026, Challenging Alipay, WeChat Pay

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China, the world’s second-largest economy, is preparing to give its digital currency a stronger push. Starting January 1, 2026, banks in China will be allowed to pay interest on digital yuan balances held in verified wallets. 

This move came to strengthen the digital yuan wallets option compared to popular private payment apps like Alipay and WeChat Pay.

The People’s Bank of China (PBOC) has released a detailed action plan to strengthen the structure, rules, & financial infrastructure behind the digital yuan. For this, they have introduced a fully upgraded management and operational system for their central bank digital currency.

According to the PBoC, digital yuan balances will be treated under existing deposit rules. This means they will also fall under China’s deposit insurance system, giving users more confidence in holding e-CNY.