China has added 12 banks to its digital yuan (e-CNY) system, more than doubling the number of institutions using it in day-to-day operations. The expansion deepens the currency's role in the financial system after Beijing pledged to “steadily develop the digital yuan” in its latest five-year plan.
The expansion follows a draft Finance Law published on Friday that recognised the digital currency as fiat currency equivalent to cash, while a new framework supporting the wider campaign took effect in January. Only 10 banks – including China’s six major state-owned banks – are currently integrated into the digital yuan network. The new additions include seven national joint-stock commercial banks: China Citic Bank, China Everbright Bank, Huaxia Bank, China Minsheng Bank, China Guangfa Bank, SPD Bank and Zheshang Bank, according to Shanghai Securities News. Five city commercial banks – including the Bank of Ningbo – will also be added. Under the central bank’s supervision, the commercial banks would be responsible for the e-CNY’s day-to-day operations as well as compliance checks related to areas such as anti-money laundering and identity verification.