China Expands e-CNY Operator Banks to 30, Tripling Total This Year
Summary
- China has expanded participating banks in its central bank digital currency e-CNY to 30 after adding a total of 20 institutions this year.
- The e-CNY operates under a two-tier structure in which the People’s Bank of China manages the core system, while licensed commercial banks handle wallet opening, top-ups and exchange, payments, and anti-money laundering, or AML.
- China’s January overhaul of the operating framework classified e-CNY held in commercial bank wallets as deposits on which those banks must pay interest, and the PBOC plans to keep expanding the operator network.
Forecast Trend Report by Period
China has sharply expanded the number of banks participating in its central bank digital currency, the e-CNY.
Eight Chinese banks, including Bank of Shanghai and Bank of Hangzhou, joined the e-CNY operator network this week, CoinDesk reported on August 19.
The banks recently completed connections to the e-CNY central system. Services will begin after they complete operational and technical development.
The People’s Bank of China added 12 banks as e-CNY operators in April, raising the number of participating institutions to 22 from 10. With eight more banks joining this time, China has added 20 institutions this year, bringing the total to 30.
The e-CNY uses a two-tier structure that divides responsibilities between the central bank and commercial lenders. The PBOC manages the core system, while licensed commercial banks handle wallet opening, top-ups and exchange, payments and anti-money laundering, or AML.
China also overhauled the e-CNY operating framework in January. Under the revised system, e-CNY held in commercial bank wallets is classified as deposits on which those banks must pay interest.
The PBOC plans to continue expanding the roster of e-CNY operators.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul