China expands digital yuan network to 30 operating banks

The People’s Bank of China (PBOC) has added eight banks to its digital yuan operating network, bringing the total number of institutions authorized to provide digital yuan services to 30. China’s central bank said the new operators, including Ping An Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank and Changsha Bank, have connected to its digital yuan system and will begin offering services once their operational and technical preparations are complete. The move is the second expansion of the digital yuan’s two-tier operating system this year, after 12 institutions were added in April. Commercial banks serve as the second layer of the system. These banks open digital yuan wallets for consumers and businesses through their own platforms, provide payment services and handle customer security, compliance and anti-money-laundering obligations. The PBOC remains responsible for the underlying rules, standards and infrastructure. The expansion follows a series of reforms targeting moving the digital yuan from pilot programs toward more routine, large-scale use. Since Jan. 1, the upgraded 2.0 framework has treated digital yuan balances in verified wallets as deposit-like money, with...