Chinese Investors Invest $188 Million in Digital Yuan Companies Following PBOC Policy Change

Chinese investors have invested over $188 million in companies related to the digital yuan after the People's Bank of China (PBOC) announced that digital currency wallets can now earn interest.

Key Takeaways

Chinese investors have invested over $188 million in digital yuan firms after the PBOC allowed interest on wallets.
Major digital yuan firms now have a market value of 1.89 billion yuan ($265 million).
New policies encourage investment and innovation in the digital yuan ecosystem, benefiting both consumers and banks.
The PBOC warns against potential scams exploiting new interest features for digital currencies.
China's push for the digital yuan contrasts with U.S. policies on CBDCs, as the nation seeks to strengthen its global monetary position.

According to Securities Times, the top ten shareholders in the digital yuan sector now command a cumulative market value of 1.89 billion yuan (approximately $265 million).

On December 29 alone, seven stocks related to Central Bank Digital Currency (CBDC) saw net inflows surpassing 100 million yuan from significant investors. Leading the way was Lakala, attracting 371 million yuan (about $52 million). It was followed by Hengbao Co., Ltd. at 265 million yuan ($37 million), Cuiwei Co., Ltd. at 211 million yuan ($29.5 million), and iSoftStone Co., Ltd. at 176 million yuan ($24.6 million).

China Digital Yuan Interest - Chart from Securities Times

Digital Yuan Wallet Interest Fuels Investor Enthusiasm

The PBOC's recent approval for interest on digital yuan wallets marks a significant change in the digital currency's appeal.

A financial expert, who chose to remain anonymous, told Shanghai Securities News that the new policy results in a "win-win situation for all parties," explaining, “Businesses and individuals will earn interest and access a wider range of financial services. Commercial banks will benefit from incentives to engage in digital yuan transactions.”

Starting January 1, 2026, banks will have the autonomy to manage the assets and liabilities of digital yuan wallet balances, as outlined in the central bank’s strategic action plan for the years 2026 to 2030.

The wallets currently active in pilot regions work offline in areas lacking internet connectivity and automatically update balances when they connect with internet-enabled point-of-sale devices or transit systems.

In addition to interest on wallets, Shandong Province has initiated a digital yuan loan program for entrepreneurs in its capital, Jinan. The “Ji Dan – Entrepreneurial Loan” online platform provides startup funding of up to 200,000 yuan (about $28,000) for small businesses.

However, the PBOC Digital Currency Research Institute has cautioned against fraudsters who might exploit the new interest features to steal personal and financial information. Scammers are marketing fake returns of up to 5% and setting up deceptive chat rooms and events to entice individuals to convert digital yuan through unofficial means.

These fraudulent schemes include phishing links, counterfeit applications, and pretended investment platforms that falsely claim to be part of the official digital yuan launch.

This warning is particularly timely as China seeks to enhance public confidence in its CBDC ahead of the upcoming rollout of an advanced framework.

China Accelerates Digital Yuan Development Amid Global CBDC Rivalry

China's renewed efforts to promote the digital yuan stand in stark contrast to the United States, where an executive order was signed by President Trump nearly a year ago prohibiting federal agencies from endorsing or issuing CBDCs.

The PBOC is actively working to enhance both domestic and international applications of its CBDC, which was first introduced in 2020. Earlier this month, a state-run bank issued $600 million in commercial bonds, accepting payment in digital yuan through a private blockchain network.

PBOC Deputy Governor Lu Lei highlighted key features of the modern digital yuan, noting its roles as “a measure of monetary value, a store of value, and for cross-border payments,” with direct technical support and oversight from the central bank.

As of November 2025, the digital yuan had processed 3.48 billion transactions amounting to a total of 16.7 trillion yuan (about $2.34 trillion). The system now supports 230 million personal wallets and 18.84 million corporate wallets through its dedicated application.

Furthermore, the multilateral central bank digital currency bridge carried out 4,047 cross-border transactions, totaling 387.2 billion yuan (approximately $54.2 billion), with the digital yuan comprising around 95.3% of the overall transaction value in all currencies.

In a related development, the PBOC has established a digital yuan operations center in Shanghai to enhance the international presence of the yuan, following Governor Pan Gongsheng's vision for a multi-polar monetary system that supports the global economy.