China expands digital yuan pilot by adding 12 more banks

The People’s Bank of China has announced an expansion of its digital yuan (e‑CNY) program, adding 12 more participating banks. According to Reuters, this move broadens the ecosystem of pilot participants and brings the project closer to wider commercial rollout. The new banks will be able to issue digital yuan wallets, integrate e‑CNY into mobile apps and offer customers new use cases in retail and corporate payments.

The expansion means testing of e‑CNY is moving beyond a small group of major state‑owned banks and tech giants to include a larger number of regional and specialized lenders. This is important for assessing how a central bank digital currency performs in a more diverse environment: across different cities, industries and scenarios — from everyday purchases to public services and cross‑border transactions. Chinese authorities view the digital yuan as a tool to modernize the payment system, increase transaction transparency and potentially strengthen the role of the national currency in international trade and finance.

Observers point out that, against the backdrop of intense debate over stablecoins and private cryptocurrencies, central bank digital currency projects are steadily moving from theory to large‑scale practical trials. China’s experience is being closely watched by other major economies, which are assessing how such systems might coexist with commercial banks, payment providers and traditional payment networks. In the coming years, the scale and success of pilots like e‑CNY will largely determine how fast CBDCs spread worldwide.