The People’s Bank of China (PBoC) announced a new action plan on December 29 for overseeing China’s digital yuan, establishing a system for measurement and management effective January 1. This supports its shift to full-scale domestic and international use, with transaction volumes doubling to RMB 14.2 trillion.
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Digital yuan exits trials for full application by year-end, including cross-border transactions like the first in Laos.
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PBoC improves mBridge platform for multi-nation CBDC payments.
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Transactions hit RMB 14.2 trillion ($2 trillion) by September 2025, up from RMB 7.3 trillion in July 2024, per PBoC data.
China’s PBoC unveils digital yuan oversight plan effective Jan 1 amid booming adoption. Discover cross-border expansion, e-CNY features, and crackdown on virtual currencies. Stay ahead in CBDC developments—read now!
What is the PBoC’s new action plan for China’s digital yuan?
China’s digital yuan, also known as e-CNY, is advancing under a fresh initiative from the People’s Bank of China (PBoC). Announced on December 29, the plan introduces a comprehensive framework for measuring and managing the digital currency, taking effect on January 1. This move aligns with the currency’s transition from trials to widespread domestic and international deployment.
How has China improved its handling of the digital yuan?
China has marked key milestones in digital yuan development. It completed its inaugural cross-border transaction using the digital yuan in Laos, showcasing practical international viability. The PBoC enhanced the mBridge platform, a multi-Central Bank Digital Currency (CBDC) system that connects nations for seamless instant payments.
The digital yuan functions similarly to mobile wallets but stands out as official legal tender, unlike private services such as Alipay or WeChat Pay. Businesses must accept it, with transactions generally free for users and merchants. It incorporates “controllable anonymity” for small purchases, balancing privacy and oversight.
PBoC data from October reveals explosive growth: digital yuan payments settled reached RMB 14.2 trillion—about $2 trillion—by September 2025, nearly doubling from RMB 7.3 trillion in July 2024. This surge underscores robust adoption across retail, corporate, and cross-border scenarios.
PBoC Governor Pan Gongsheng emphasized these strides at the 2025 Annual Conference of the Financial Street Forum. He pledged measures to refine digital yuan operations and integrate it into China’s monetary framework. The central bank now authorizes more commercial banks to offer e-CNY services freely.
Frequently Asked Questions
What are the unique features of China’s digital yuan?
China’s digital yuan serves as legal tender, obligatory for businesses to accept, unlike private apps like Alipay. It supports free transactions with controllable anonymity for small amounts and integrates with the national monetary system for secure, efficient payments domestically and abroad.
Is the PBoC cracking down on virtual currency trading?
Yes, PBoC Governor Pan Gongsheng confirmed ongoing collaboration with authorities since 2017 to curb virtual currency risks. The bank will intensify actions against domestic trading and speculation to safeguard economic stability, while monitoring foreign stablecoins closely.
Key Takeaways
- New oversight framework: PBoC’s action plan effective January 1 establishes measurement and management systems for the digital yuan.
- Global expansion: Successful Laos transaction and mBridge upgrades signal international readiness by year-end.
- Regulatory vigilance: Continued crackdown on virtual currencies alongside e-CNY promotion ensures financial order.
Conclusion
China’s digital yuan is solidifying its role through the PBoC’s new action plan and operational centers in Shanghai and Beijing for international and domestic management. With transaction volumes soaring and cross-border capabilities advancing, the e-CNY positions China at the forefront of CBDC innovation. Financial institutions and users should prepare for broader integration as oversight strengthens economic resilience.
Source: https://en.coinotag.com/chinas-pboc-plans-digital-yuan-oversight-framework-amid-expanding-adoption
