digihuman(BJ:835670) Sou Hu Cai Jing·2026-01-01 07:14Core Viewpoint - The People's Bank of China will implement a new action plan to enhance the management and service system of the digital renminbi, transitioning from a cash-like version to a deposit currency version starting January 1, 2026 [1][2]. Group 1: Transition to Digital Deposits - The digital renminbi will shift from being classified as "digital cash" to "digital deposits," allowing banks to pay interest on customer balances in digital renminbi wallets [2][6]. - Digital renminbi deposits will be included under deposit insurance, providing a protection limit of up to 500,000 yuan for customers in case of bank risks [2][8]. - Major banks, including ICBC and ABC, will start paying interest on digital renminbi wallet balances at the same rate as regular savings accounts [2][8]. Group 2: Implications for Banks - The new framework allows banks to manage digital renminbi as liabilities, enabling them to earn interest and comply with reserve requirements, thus integrating digital renminbi into their balance sheets [7][9]. - Previously, digital renminbi existed in M0 form, which did not allow for monetary creation; the new structure will allow it to be categorized under M1 or M2, improving liquidity in the banking system [8][9]. - The transition to digital deposits will enhance banks' motivation to promote digital renminbi, addressing previous cost burdens without corresponding revenue [9]. Group 3: Technological and Regulatory Aspects - The digital renminbi will incorporate distributed ledger technology and smart contracts, facilitating efficient payment processes and regulatory compliance [9]. - The new system aims to support real-time cross-border transactions, reducing intermediary costs and enhancing settlement efficiency, which may aid in the internationalization of the renminbi [9].