China Breaks CBDC Orthodoxy: Digital Yuan to Pay Interest Starting 2026

China’s digital yuan entered a new era on January 1, 2026, as wallet balances began accruing interest at demand deposit rates. The move marks a decisive break from the prevailing global consensus that central bank digital currencies should remain non-interest-bearing. The European Central Bank, Federal Reserve, and Bank for International Settlements have long championed this principle as essential to financial stability. The Orthodox View: CBDCs as Digital Cash, Not Savings The global CBDC community has largely coalesced around a core principle: retail CBDCs should function as digital equivalents of physical cash, not as interest-bearing savings instruments source: https://beincrypto.com/china-china-digital-yuan-pay-interest/