China is set to broaden the reach of its central bank digital currency, the e-CNY or digital yuan, by authorizing 12 additional banks to integrate the currency into their operations, a move aimed at broadening adoption of the currency.

The People's Bank of China (PBOC) is set to increase the number of authorized institutions from the current 10 to 22, incorporating a mix of joint-stock and city commercial lenders such as Shanghai Pudong Development Bank, China Everbright Bank, and Bank of Ningbo. The plan was reported by Reuters, citing sources familiar with the matter. Launched in 2019, the e-CNY has seen gradual uptake, with cumulative transactions hitting 16.7 trillion yuan (about $2.4 trillion) by November 2025, representing approximately 3.5 billion transactions with 230 million personal wallets and 18.8 million corporate wallets opened.

ACCELERATING DOMESTIC ADOPTION

The new banks will handle wallet opening, currency exchange and payment processing, according to the South China Morning Post. Bank of Ningbo, for instance, has already invited suppliers to develop supporting infrastructure, according to Reuters. To sweeten the deal for users, banks began paying interest on e-CNY wallet balances from January 2026 to increase its appeal. A policy effective January 1, 2026 reclassifies e-CNY balances as on-balance-sheet, interest-bearing deposits, with balances covered by deposit insurance.

Retail adoption has been slow, with most customers already able to make safe and low-cost electronic payments through platforms such as Alibaba's Alipay and Tencent Holdings' WeChat Pay, Reuters reported.

The PBOC established an international operations center in Shanghai in 2025 to promote global use of the e-CNY.

GEOPOLITICAL AND CROSS-BORDER AMBITIONS

Beyond domestic use, officials see potential for the e-CNY in cross-border settlement, and HashKey Group research cited by Reuters describes it as a supplementary channel outside the US dollar-dominated system. This comes amid policy divergences: China has tightened curbs on private cryptocurrencies and stablecoins, contrasting with the U.S. under President Trump, which has embraced private digital assets while opposing a CBDC.

In a separate step, on February 26, 2026, the PBOC issued a notice supporting domestic banks in cross-border interbank RMB financing with overseas institutions, aimed at providing liquidity to offshore RMB markets and promoting RMB internationalization.

Chinese banks are transitioning from basic financing to strategic partnerships, supporting industrial upgrading and ecosystem globalization. Chinese companies' outward investment continues to expand, the internationalization of the RMB is steadily advancing, and demand for cross-border RMB settlement is growing, giving Chinese banks differentiated competitive entry points.

IMPLICATIONS FOR GLOBAL FINANCE

With 42 locally incorporated foreign banks in China as of mid-2025, owned by shareholders from 14 countries and regions, and new entrants like Fubon Bank (Hong Kong) and Banco Santander opening branches, foreign lenders continue to enter the market. Foreign lenders are pivoting to high-net-worth services, cross-border finance, and green initiatives, while Chinese banks optimize overseas footprints.