PANews Original｜Digital Yuan 2.0 Launches, Paying Users to Hold As central banks compete in the digital payments space, paying users interest is becoming a defining feature of CBDC strategies. Starting in 2026, China’s digital yuan (e-CNY) will officially support interest-bearing balances across all verified wallet tiers. Funds will accrue interest at a floating rate (currently 0.05% annually) and be covered by deposit insurance, offering users tangible, risk-protected returns. The e-CNY is also being reclassified from M0 (cash) to M1 (demand deposits), enabling banks to develop yield-generating services on top of CBDC infrastructure, turning what was once a cost center into a profit engine. With programmable payments and smart contract support, the digital yuan is expanding its use cases, installment spending, targeted subsidies, family budgeting, and its offline payment capabilities bolster resilience in emergency scenarios. Meanwhile, cross-border adoption is accelerating: over $55 billion in transactions have already been processed via mBridge, with 95% settled in digital yuan, solidifying its role as the backbone of China's digital finance and currency internationalization efforts. #DigitalYuan #CBDC #eCNY #InterestBearingWallets #OnChainFinance