### China Set to Launch Comprehensive Digital Yuan Action Plan on January 1, 2026 China is poised to enhance its digital currency framework with the introduction of a new action plan on January 1, 2026. This initiative, announced by the People's Bank of China (PBoC), aims to improve the management and operational capabilities of the digital yuan, also known as e-CNY. The plan includes significant features such as allowing banks to pay interest on digital yuan holdings, which is expected to stimulate adoption among consumers and businesses alike. Additionally, the action plan outlines the establishment of an international digital yuan operations center, reflecting China's ambition to position its digital currency on a global scale [https://www.malaymail.com/news/money/2025/12/29/china-to-roll-out-new-digital-yuan-action-plan-from-jan-1/203626][https://www.freemalaysiatoday.com/category/business/2025/12/29/china-to-launch-digital-currency-action-plan]. ### Breakdown of the Digital Yuan Action Plan 1. **Management and Operations Enhancement** - The PBoC's action plan focuses on strengthening the management and operational framework of the digital yuan, ensuring it functions effectively within the financial system [https://www.thedailystar.net/business/news/china-says-launch-digital-currency-action-plan-4068421]. 2. **Interest Payments on Digital Yuan** - Starting January 1, 2026, banks will be permitted to offer interest on digital yuan balances, a move designed to encourage more widespread use of the currency [https://www.newsbytesapp.com/news/business/china-to-launch-digital-yuan-action-plan-from-january-2026/story][https://www.tv360nigeria.com/china-to-roll-out-new-digital-yuan-action-plan-on-january-1]. 3. **International Operations Center** - The plan includes a proposal to establish an international operations center for the digital yuan, which aims to facilitate its use in global transactions and enhance its international presence [https://www.thedailystar.net/business/news/china-says-launch-digital-currency-action-plan-4068421]. 4. **Integration of Advanced Technologies** - The upcoming Digital RMB 2.0 will incorporate smart contract technology and distributed ledger systems, marking a significant technological advancement in the digital currency's infrastructure [https://coinedition.com/china-to-launch-digital-rmb-2-0-on-jan-1-with-smart-contract-integration]. ### Supporting Evidence and Data - **Interest Payment Policy**: The introduction of interest payments on digital yuan holdings is expected to significantly increase user engagement and trust in the digital currency, as it aligns with traditional banking practices [https://www.news9live.com/technology/tech-news/china-unveils-digital-yuan-action-plan-introduces-interest-payments-to-boost-adoption-2915514]. - **Transaction Volume**: The digital yuan has already seen substantial transaction volumes, with over 14.2 trillion yuan processed, indicating a strong foundation for further growth and adoption [https://bitcoinethereumnews.com/tech/china-unveils-digital-rmb-2-0-full-rollout-set-for-january-2026]. - **Global Ambitions**: The establishment of an international operations center is a strategic move to enhance the digital yuan's role in global finance, potentially challenging the dominance of established currencies like the US dollar [https://www.caixinglobal.com/2025-12-29/china-to-allow-interest-on-digital-yuan-in-major-overhaul-102398302.html]. ### Conclusion: A Strategic Shift in Digital Currency Management In summary, **China's new action plan for the digital yuan represents a significant strategic shift aimed at enhancing its functionality and global competitiveness**. The key components of this plan include: 1. **Enhanced Management**: Strengthening the operational framework of the digital yuan. 2. **Interest Payments**: Introducing interest on digital yuan holdings to boost adoption. 3. **International Operations**: Establishing a center to facilitate global transactions. 4. **Technological Integration**: Incorporating advanced technologies like smart contracts. These initiatives are expected to not only improve the digital yuan's domestic usage but also position it as a formidable player in the international financial landscape [https://www.tv360nigeria.com/china-to-roll-out-new-digital-yuan-action-plan-on-january-1][https://www.marketscreener.com/news/china-to-issue-digital-yuan-management-action-plan-ce7e59dbd880f72d].