China's Central Bank Adds Eight Banks to Digital Yuan Network

China’s central bank has added eight banks to its digital yuan network, bringing the number of e-CNY operating institutions to 30.

The People’s Bank of China (PBOC) added Ping An Bank, Hengfeng Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha and Guangxi Beibu Gulf Bank, according to a Xinhua report published Monday on the government’s website.

The banks will be connected to the PBOC’s digital yuan system and begin offering services after completing operational and technical preparations.

The expansion follows the addition of 12 institutions in April, when city commercial banks joined the operator list. Before this year’s additions, only 10 banks were authorized operators, with Industrial Bank the last to join in 2022.

Dong Ximiao, chief researcher at Merchants Union Consumer Finance, said new operators could fill gaps in services for regional small and medium-sized enterprises and cross-border trade.

The PBOC began researching a digital currency in 2014 and launched pilots in late 2019. China has since expanded the e-CNY into merchant payments, public utilities and government services. The central bank said it would continue expanding the operator network to promote competition and broaden access.