Digital yuan operator network expands to 30 institutions as China authorizes 8 additional banks

Digital yuan operator network expands to 30 institutions as China authorizes 8 additional banks

Eight financial institutions have received authorization to provide e-CNY services once they finalize their technical infrastructure and operational frameworks.

The digital yuan network operated by China's central bank has welcomed eight new banking institutions, pushing the total count of e-CNY operating institutions to 30.

According to a Xinhua report posted Monday on the government's official website, the People's Bank of China (PBOC) has granted authorization to Ping An Bank, Hengfeng Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha and Guangxi Beibu Gulf Bank.

These financial institutions will establish connections to the PBOC's digital yuan infrastructure and commence service offerings once they have finalized their operational and technical preparations.

This latest expansion comes on the heels of a previous addition of 12 institutions in April, a move that brought city commercial banks into the operator list. Prior to the institutions added this year, authorization had been limited to just 10 banks, with Industrial Bank being the most recent addition back in 2022.

According to Dong Ximiao, chief researcher at Merchants Union Consumer Finance, the inclusion of new operators has the potential to address service gaps for regional small and medium-sized enterprises and cross-border trade activities.

The PBOC initiated its digital currency research efforts in 2014 and rolled out pilot programs in late 2019. Since then, China has broadened the e-CNY's reach into merchant payments, public utilities and government services. The central bank has indicated its intention to continue expanding the operator network to promote competition and broaden access.