#What is the PBOC's Action Plan for the Digital Yuan?
The People's Bank of China has unveiled a strategic action plan aimed at reinforcing the governance and infrastructure surrounding the digital yuan. Set to take effect from January 1, 2026, this plan introduces a newly structured framework for managing the digital currency.
The digital yuan serves as China’s central bank digital currency intended for both retail and institutional transactions. By November 2025, activities related to this currency had already surpassed 3.5 billion transactions. This success is further complemented by the cross-border capabilities of mBridge, a multi-CBDC platform that facilitates real-time, peer-to-peer international settlements using sophisticated distributed ledger technology.
#How Will the New Framework Impact Digital Currency Operations?
This action plan marks a significant transition for the digital renminbi, evolving it from a simple form of digital cash to a more complex system of digital deposit money. By integrating it more thoroughly into the financial system, it aims to uphold rigorous central bank oversight and enforce accountability at the bank level.
The regulations will introduce revisions to the framework for measuring digital RMB balances, incorporating these into deposit reserves while imposing complete margin requirements on non-bank payment companies. Additionally, wallets will be classified according to their liquidity, promoting a clearer structure that recognizes digital RMB as a liability of commercial banks, heralding a new era known as "Digital RMB 2.0."
#What Are the Key Components of the New System?
The upgraded system architecture will effectively blend accounts, token strings, and smart contracts. The enhancements will convert traditional wallets into digital accounts, which will promote greater automation in issuance and settlement processes. There will also be a strengthened smart contract platform rooted in an open-source ecosystem to ensure security and efficiency.
To oversee these developments, the PBOC will establish a dedicated Digital RMB Management Committee and will manage two centers focused on domestic and international systems. Security, continuity, and coordinated oversight will remain the highest priorities within this evolving framework.