Key facts
- Eight new banks have been added to China's digital yuan network.
- The total number of e-CNY operating institutions is now 30.
- The People's Bank of China (PBOC) authorized the new lenders.
- The expansion aims to broaden access and promote competition for the digital currency.
- The PBOC began researching a digital currency in 2014 and launched pilots in late 2019.
China's central bank has expanded its digital yuan network by adding eight new banking institutions, bringing the total number of operating entities to 30. The People's Bank of China (PBOC) included Ping An Bank, Hengfeng Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha, and Guangxi Beibu Gulf Bank in the latest expansion.
These newly authorized lenders will commence offering e-CNY services once they complete the necessary operational and technical preparations. This move follows a significant expansion in April, which saw 12 institutions, primarily city commercial banks, join the network. Prior to this year's additions, only 10 banks were authorized operators, with Industrial Bank being the last to join in 2022.
Dong Ximiao, chief researcher at Merchants Union Consumer Finance, suggested that the inclusion of new operators could help address service gaps for regional small and medium-sized enterprises and facilitate cross-border trade. The PBOC initiated research into a digital currency in 2014 and launched pilot programs in late 2019, subsequently integrating the e-CNY into various sectors including merchant payments, public utilities, and government services. The central bank stated its intention to continue expanding the operator network to foster greater competition and accessibility.