The digital yuan is about to undergo a significant upgrade. Starting January 1, 2026, the balance in digital yuan wallets will be officially included in the interest-bearing mechanism. Without changing the "two-tier operating structure," digital yuan issued by banking institutions will be moved from off-balance-sheet assets to on-balance-sheet management, and the reserve requirement system will change from 100% reserves to partial reserves; non-bank payment institutions will still need to implement a 100% digital yuan margin system. The report points out that banking institutions can pay interest on customers' real-name digital yuan wallet balances and must comply with the self-regulatory agreement on deposit interest rate pricing. They can also independently conduct asset and liability management based on their digital yuan wallet balances. The relevant balances will be included in the deposit insurance coverage in accordance with the law, enjoying the same security protection as deposits. For non-bank payment institutions, the nature of their digital yuan margin is no different from existing customer reserve funds. (Caixin.com)