China adds 12 banks to digital yuan system, expanding e-CNY’s economic presence
More than doubling the number of integrated banks, China deepens the digital yuan's role as legal tender.
China is accelerating the adoption of its central bank digital currency (CBDC), the digital yuan (e-CNY), by integrating 12 new commercial banks into its official network. This move more than doubles the number of participating institutions from the current 10, which include the six major state-owned banks. The expansion is a direct implementation of Beijing's pledge in its latest five-year plan to 'steadily develop the digital yuan,' and follows the currency's formal recognition as fiat money equivalent to cash in a draft Finance Law published in March 2026.
The newly added banks include seven national joint-stock commercial banks—China Citic Bank, China Everbright Bank, Huaxia Bank, China Minsheng Bank, China Guangfa Bank, SPD Bank, and Zheshang Bank—alongside five city commercial banks, including the Bank of Ningbo. These institutions will be responsible for core functions like opening digital wallets, currency exchange, and payment processing, all under the supervision of the People's Bank of China. This marks a significant shift in the e-CNY's role, transitioning it from a simple cash alternative to a functional, interest-bearing deposit instrument integrated into the daily financial system.
- China adds 12 commercial banks to its digital yuan (e-CNY) network, more than doubling the number of integrated institutions from 10.
- The expansion follows the e-CNY's formal recognition as legal tender (fiat currency) in a new draft Finance Law.
- New banks will handle core functions like wallet creation and payments, supporting the currency's shift to an interest-bearing instrument.
Why It Matters
This major expansion accelerates China's CBDC rollout, deepening its integration into the global financial system and challenging traditional banking models.