China Launches Next-Generation Digital Currency Yuan Action Plan
China’s central bank, the People’s Bank of China (PBC), has unveiled a new action plan to strengthen the digital yuan system and related financial infrastructure. The plan, formally implemented on January 1, 2026, aims to enhance the safety, stability, and efficiency of China’s digital currency while supporting cross-border trade and investment.
Quick Insight:
The rollout marks a major step in China’s digital currency development, providing a high-efficiency, globally competitive framework for transactions, cross-border settlements, and financial innovation.
1. Strengthening the Digital Yuan Ecosystem
• New generation frameworks and operational mechanisms for the digital yuan will be launched.
• Improvements cover measurement, management, operations, and the overall ecosystem.
• The action plan responds to growing demands from the real economy and the financial system.
2. Positive Pilot Program Results
• As of November 2025, 3.48 billion digital yuan transactions have been processed.
• 230 million personal wallets have been opened.
• Total transaction value reached 16.7 trillion yuan ($2.38 trillion), showing strong adoption.
3. Cross-Border Payment Initiatives
• The multi-Central Bank Digital Currency Bridge (mBridge) facilitates international settlements.
• So far, it has processed 4,047 cross-border transactions totaling 387.2 billion yuan.
• The digital yuan accounts for over 95% of these transaction amounts, highlighting its central role.
4. Advantages for Trade and Investment
• The digital yuan enhances transaction speed, efficiency, and convenience for global traders.
• Integrates emerging technologies like smart contracts into financial operations.
• Supports cost reduction, streamlined business chains, and improved capital utilization.
5. Expansion of International Operations
• China’s international digital yuan center in Shanghai began operations in September 2025.
• It hosts three major platforms: cross-border digital payments, blockchain services, and digital asset management.
• Aims to expand global access, facilitate cross-border trade, and support offshore financial innovation.
6. Strategic Implications
• The action plan strengthens China’s influence in the international financial system.
• Positions the digital yuan as a key tool in the global monetary landscape.
• Contributes to China’s high-standard opening-up in finance and services.
Final Thoughts
The launch of the next-generation digital yuan framework signals China’s commitment to leading in digital finance. By enhancing operational efficiency, security, and cross-border integration, the initiative positions the digital yuan as a globally competitive currency for trade, investment, and financial innovation.
