PBOC Expands Digital Yuan Operating Institutions to 22, Boosting Inclusive Services

The People’s Bank of China (PBOC) announced on April 2 the addition of 12 bank-type digital yuan operating institutions, which have been connected to the central bank’s digital yuan system. Following this expansion, the total number of digital yuan operating institutions has increased to 22, a move that marks a solid step in advancing the steady development of the digital yuan.

“This is a specific measure to implement the deployment of ‘steadily developing the digital yuan’ outlined in the Outline of the 15th Five-Year Plan,” said Dong Ximiao, Chief Economist of China Merchants Union Consumer Finance Company. “It will further enhance the inclusiveness of digital yuan services, making them more accessible to the general public.”

Prior to this announcement, Pan Gongsheng, Governor of the PBOC, stated that the central bank would study and optimize the positioning of the digital yuan in the monetary hierarchy, while supporting more commercial banks to become digital yuan operating institutions, laying the groundwork for the latest expansion.

Wang Pengbo, Chief Analyst of Botong Consulting, noted that the current expansion is mainly aimed at streamlining the two-tier operation system by incorporating more joint-stock banks and urban commercial banks. This addresses the previous issues of insufficient participating entities and weak promotion momentum in the digital yuan’s development.

Dong Ximiao further explained that joint-stock banks and urban commercial banks possess large customer bases, local government cooperation resources and differentiated service capabilities. Their inclusion will help improve the digital yuan’s two-tier operation structure, fostering a richer ecological system and stronger service capacity.

Data shows that as of the end of November 2025, the digital yuan had handled a total of 3.48 billion transactions, with a cumulative transaction volume of 16.7 trillion yuan, reflecting its growing popularity and wide application in daily economic activities.

The digital yuan adopts a two-tier operation architecture of “central bank-operating institutions”. Dong Ximiao introduced that under this system, the PBOC is responsible for the top-level design of the digital yuan and undertakes the planning, construction and operation of relevant infrastructure. Commercial banks, as operating institutions, are mainly responsible for scenario construction, wallet opening, exchange services and circulation services.

Since January 1 this year, a new generation of digital yuan measurement framework, management system, operation mechanism and ecological system has been put into implementation, marking the digital yuan’s transition from the cash-based Version 1.0 to the deposit-money-based Digital Yuan Version 2.0. Dong Ximiao pointed out that in the 2.0 era, digital yuan deposits have become a usable source of funds for banks, which will enhance their internal motivation for commercial promotion.

Wang Pengbo suggested that efforts should be made to further improve the two-tier operation system, encouraging deeper participation of more joint-stock banks and urban commercial banks to expand the inclusiveness and coverage of services. At the same time, it is necessary to further expand scenarios such as people’s livelihood, government affairs and enterprise settlement, and make good use of smart contracts to improve service efficiency.