The People’s Bank of China (PBOC) has given a major push to its central bank digital currency (CBDC) network. A total of 12 new financial institutions, including seven national joint-stock banks and five regional commercial banks (notably Bank of Ningbo), have joined the digital yuan (e-CNY) operating platform. This ends the previous oligopoly of the “Big Six” large state-owned banks and drastically expands access points for both users and businesses.
This expansion process is not accidental; it is linked to a key regulatory shift: the e-CNY has been reclassified as M1, now functioning as a digital deposit that generates interest. Furthermore, it allows commercial banks to integrate these holdings into their deposit base for lending. This aligns the incentives of financial entities with the promotion of the e-CNY, resolving previous competition with their own products. Meanwhile, the e-CNY is positioned not to replace giants like Alipay, but as an underlying sovereign layer with advantages such as offline payments and lower fees.
The integration of these 12 financial institutions strengthens the digital yuan’s infrastructure, especially with an eye toward internationalization. Several of the new banks, such as Huaxia Bank and SPD Bank, are targeting the mBridge platform for real-time cross-border settlements outside of SWIFT. The e-CNY is no longer just a pilot project; it is a rapidly expanding network seeking to scale both domestically and globally.
Source:https://goo.su/yi2aY
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