China's Digital Yuan: New Interest-Bearing Framework

Chinas digital yuan evolves: Interest-bearing, globally focusedThe Peoples Bank of China is launching a significant update to its digital yuan, starting January 1st. This update allows commercial banks to pay interest on digital yuan holdings, aiming to increase its usage among individuals and businesses. The digital yuan will now function more like digital deposit money, issued and managed within the financial system, backed by commercial bank accounts. The project, initiated in 2014, has been running pilot programs and airdropping digital yuan to encourage everyday use. The new framework will enable the digital yuan to serve as a store of value, a unit of measurement for money, and handle cross-border payments, all while maintaining central bank oversight. Additionally, an international operations center for the digital yuan is being established in Shanghai to expand its global reach and accelerate wider adoption. Checkout Solipillow.comThe Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.