China Expands Digital Yuan Operating Network to 30 Institutions, Adding 8 Local Banks

The People's Bank of China Expands Digital Yuan Operating System

The PBOC (People's Bank of China) has added 8 new banks as operators of the e-CNY (digital yuan), increasing the total number of authorized financial institutions to 30.

The newly added banks will start providing digital yuan services as soon as they complete their operational and technical preparations.

Eight New Participants Including Ping An Bank and Shanghai Bank

The newly authorized banks include Ping An Bank, Hengfeng Bank, China Bohai Bank, Shanghai Bank, Hangzhou Bank, Huishang Bank, Changsha Bank, and Guangxi Beibu Gulf Bank. Each of these banks is already connected to the PBOC's digital yuan system and plans to start offering digital yuan services once the necessary operational and technical preparations are complete.

This addition marks the second major expansion this year, following the inclusion of 12 urban commercial banks as operators in April 2026. At the beginning of 2026, there were 10 authorized operators, but with this addition, the total has reached 30.

The digital yuan adopts a two-tier operating system, where the PBOC manages the underlying rules, standards, and infrastructure, while commercial banks and other operating entities provide wallet and payment services to individuals and businesses. Each operator is also responsible for customer security, regulatory compliance, and anti-money laundering measures.

Expectations for Expansion in Regional SMEs and Cross-Border Trade

Dong Ximiao, chief researcher at the Merchants Union Consumer Finance, pointed out that the participation of new local banks could help address the service shortages in regional SMEs and cross-border trade.

The PBOC began researching digital currency in 2014 and started pilot operations at the end of 2019. Since then, the use of the digital yuan has expanded to retail transactions, dining, tourism, education, healthcare, public services, and government services, with experimental uses in cross-border payments also being promoted.

Furthermore, the 2.0 framework introduced on January 1, 2026, treats the digital yuan balance in verified wallets similarly to deposits, with a mechanism for banks to pay interest on these balances.

The PBOC has indicated that it will continue to expand the network of operating entities based on market principles and the rule of law, promoting competition and improving access to the digital yuan.