The digital yuan, or e-CNY, is the electronic version of China's currency, issued and backed by the People's Bank of China. It is not a cryptocurrency: it is worth the same as a yuan banknote. Its big showcase was the Beijing Winter Olympics in 2022, and since January 2026 its balances pay interest. This is where it stands.
What the digital yuan is
It is what is known as a central bank digital currency. It is kept in a wallet on a phone and used to pay in shops, on transport and for public services.
| Digital yuan | Cryptocurrencies such as bitcoin | |
|---|---|---|
| Who issues it | China's central bank | Nobody: they are generated by a network |
| Value | Fixed: one yuan | Variable |
| Control | Centralized | Decentralized |
| Backing | The Chinese state | None |
How much the digital yuan is used
| Item | Figure |
|---|---|
| Cumulative transactions to November 2025 | 3.48 billion |
| Value of those transactions | 16.7 trillion yuan |
| Equivalent in dollars | About 2.37 trillion |
| Value by mid-2024 | More than 7 trillion yuan |
The figures are those released by the Chinese government and reported by the financial press. Even so, everyday use remains limited: most digital payments in China are made with Alipay and WeChat Pay, which do not go through the digital yuan.
What changed for the digital yuan in 2026
A new framework has applied since 1 January 2026. The main change is that balances in verified wallets pay interest, at the rate each bank offers on demand deposits.
- It pays interest: it stops working as digital cash and becomes more like a bank deposit.
- It has deposit insurance: balances are covered like those of an account.
- More banks: the central bank announced it will allow more institutions to operate it.
- International outlook: an operations centre was set up in Shanghai to promote its use outside China.
The digital yuan and the Beijing Olympics
The 2022 Winter Games were meant to introduce the digital yuan to the world: foreign visitors would be able to pay with it at the venues. Pandemic restrictions reduced the arrival of spectators to a minimum, and the debut was far more low-key than planned. Since then, the expansion has been domestic and gradual.
Why China wants the digital yuan
For two reasons analysts often mention: to win back for the state part of the ground gained by private payment platforms, and to make it easier to use its currency in foreign trade. The latter ties in with its relationship with Moscow; we explain it in Russia and China: record trade and a pipeline that is going nowhere.
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Frequently asked questions
Is the digital yuan a cryptocurrency?
No. It is issued by China's central bank and its value is fixed.
What does e-CNY mean?
It stands for electronic Chinese yuan.
Does the digital yuan pay interest?
Yes, since 1 January 2026, in verified wallets.
Can it be used outside China?
Its international use is still limited. China set up a centre in Shanghai to promote it.
