BEIJING/SHANGHAI, Dec 29 - Holdings of China's digital yuan, or e-CNY, will start generating interest income next year under a new framework, state broadcaster CCTV said on Monday, as China steps up efforts to promote the use of its central bank digital currency.
Starting January 1, e-CNY stored in wallets will earn interest based on demand deposit rates, becoming the world's first interest-bearing central bank digital currency, according to CCTV. It means e-CNY is advancing into an era of "digital
deposits", from "digital cash", CCTV said.
"This will help increase users' willingness to adopt the digital yuan, expand its usage scenarios, and further solidify China's leading position in the global exploration of central bank digital currencies," the state broadcaster said.
The use of China's digital yuan is currently limited to some government agencies and state companies. Most transactions via China's ubiquitous digital payment platforms Alipay and WeChat Pay do not involve e-CNY.
The People's Bank of China (PBOC) last month reaffirmed its tough stance on cryptocurrencies and vowed to crack down on illegal activities involving stablecoins.
Meanwhile, the PBOC is stepping up efforts to promote the use of its own digital currency.
The central bank has set up a global operation centre in Shanghai to promote international use of the digital yuan, and has said it would support more commercial banks to operate e-CNY businesses.
Earlier on Monday, Financial News, a publication run by the PBOC, said the central bank will issue an action plan on digital yuan management.
A new framework for digital yuan measurement, management, operation and ecosystem will take effect on January 1, the newspaper said.
(Reporting by the Beijing newsroom; Editing by Tom Hogue, Kirsten Donovan)
